Comments on ANZ Mortgages?

[kennyboi]

Wondering if anyone has ANZ mortgage experience can give me some confirmation/feedback.

It seems ANZ mortgages are more flexible than NAB. I just like to check if these advices from them are true (seems too good to be true because NAB require full paperwork) before refinancing to them:

1. To renew IO period, all I need to do is to call/email them and it is a 1 minute job with no income/paperwork (as long as it isn't at 10 year mark), is that true? (They only offered me 2 year IO but told me renewal is non credit critical until 10 year mark and above is what I need to do at 23rd month mark)

If it is 10 year mark, can it be renewed via full application or I had to refinance out?

2. To change between LOC vs SVR, all I need to do is to call or email them and it is a 1 minute job with no income/paperwork. Is that true?

3. To vary the loan partition size, split or merge, all I need to do is to call/email them and it is a 1 minute job with no income/paperwork (as long as overall size and name are the same). Is that true?

Also,

ANZ package seems to only offer 1 offset account. Anyone has more than 1 offset accounts and manage to get them included in the package?

Their call centre seems to be in India. Did that affect quality of service?

Thanks

 

[Peter_Tersteeg]

A lot of what you've mentioned about the ANZ, is what the ANZ advertises their process to be, but there's caveats.

I'd suggest that the ANZ and NAB are reasonably comparable in many instances.

1. ANZ reguarly define extending I/O periods as credit critical and perform a full assessment, even at less than 10 years. So do NAB.

2. LOC to SVR is generally non credit critical with most lenders, it's just a product switch which is fairly easy.

3. Neither ANZ or NAB consider adjusting loan splits to be credit critical, as long as the total limit doesn't change. Little more than a phone call to organise this.

The ANZ can set up additional offset accounts under the Breakfree package. They tend to charge an additional $10/mth for this. Whilst it can be handy to have additional accounts, neither the ANZ or NAB do this very well. The CBA has the better product in this case.

Sometimes dealing with the Indian call centre is a problem, sometimes it isn't. Depends on who you get at the other end. I can argue the same for local call centres.


The ANZ and NAB have very different assessment criteria and methods by which they assess affordability. Both have their place for various people's strategies.

I think the elements being considered here are fairly trivial, a deeper understanding of your short and long term strategy, in context of your available resources is a better way to decide.

 

[Terry_w]

1. To renew IO period, all I need to do is to call/email them and it is a 1 minute job with no income/paperwork (as long as it isn't at 10 year mark), is that true? (They only offered me 2 year IO but told me renewal is non credit critical until 10 year mark and above is what I need to do at 23rd month mark)

If it is 10 year mark, can it be renewed via full application or I had to refinance out?

2. To change between LOC vs SVR, all I need to do is to call or email them and it is a 1 minute job with no income/paperwork. Is that true?

3. To vary the loan partition size, split or merge, all I need to do is to call/email them and it is a 1 minute job with no income/paperwork (as long as overall size and name are the same). Is that true?

off top of my head.

1. I think you will need to be reassessed
2. I tried this recently for a client and a full app was needed. If not LOC it wouldn't.
3. Short form, as long as no LOC involved should be relatively easy.

 

[Rolf Latham]

for future flex BOTH are in the same boat

if in transition, AVOID

use currently Simple lenders like WBC, CBA, STG where poss

Interestingly ANZ and NAb are opposite ends of the serviceability spectrum and there is usually no way a informed structured portfolio builder in acquistion phase would use them in the same sentence, let alone compare them for finance.

Just did a loan split out with Homeside Nab. 4 weeks later and more work than the original app - pretty standard, and my client was asking why the heck are we here Rolf ???

ta
rolf



ta
rolf

 

[joanmc]

We had 1 year interest only with ANZ on a fixed rate, we were under the impression it was the first of 5 years IO in total. When the fixed rate ended they started taking P&I payments and demanded a full re-assessment if we wanted further IO.
Then they decided that none of our business income could be included (because it was our company's money, not ours) and that our rent couldn't be included as "I would have to send it to Melbourne to get that approved"
We refinanced.

 

[Jamie M]

I don't mind ANZ - I find them a particularly good lender for cash outs at high LVRs which suits more aggressive investor clients.

However - their post settlement processes are pretty ordinary. They may say that they've improved/streamlined/whatever - in reality, it's still usually a full assessment.

Cheers

Jamie

 

[Rolf Latham]

However - their post settlement processes are pretty ordinary. They may say that they've improved/streamlined/whatever - in reality, it's still usually a full assessment.

I do a bit of ANZ on a niche basis as well, their Premier service is good at the front end and to settlement but.................


its time someone took them to legal task on this loan renewal change stuff. Do it or dont do it, but dont have this grey process driven by Hogan.

it wont be long before a borrower will lose some LMI/ equity etc and they will have acted in reliance of information provided by the lender re this "fluffy" stuff ....................


ta
rolf

 

[Mick C]

Hi kennyboi,

ANZ and NAB normally ask for re-assessment for i/o extension..the lender that doesn't are CBA/ St george etc...

Also note with ANZ only- if you fix for 2-3 years your i/O will be 2-3 years

So if you expect some changes to your financial and you like to stay with i/o Or don't want a re-assessment i would consider a different lender def not ANZ...

Hint: most " aggressive investors" that has a loan with ANZ eventually over time would refinance out of ANZ anyway, as ANZ's serviceability is really strict and conservative. So a refinance is always on the card for equity release.


P.s was there a reason why your i/o with ANZ is only 2 years? im guessing it's a 2 years fixed rate? or for serviceability reasons?

 

[kamchatsky]

I am having mortgages with ANZ and I found their valuation to be very conservative. Would changing to NAB give me a lot of borrowing power in general (this is for full doc, with both working)? Also I heard NAB offering SVR of like 4.5x%, is that true?

 

[Mick C]

I am having mortgages with ANZ and I found their valuation to be very conservative. Would changing to NAB give me a lot of borrowing power in general (this is for full doc, with both working)? Also I heard NAB offering SVR of like 4.5x%, is that true?

TO be fair on ANZ....valuation can vary property to property, sometimes the ANZ valuations are lower sometimes it's higher lol , this is the same with ALL banks-you really need to val shop

NAB ( not ubank...but yes U bank as standard offer is doing sub 4.5) was offering sub 4.5 ( negotiated of course...not a standard offer) for bigger loans generally over the $800k- 1m mark + new to bank money.

If your loan is around 1.1-1.3M + with ANZ it be sub 4.6 as well ( need to bring some new to bank money as well)

P.s was your ANZ valuation a full valuation or a desktop/drive by?

 

[Rolf Latham]

I am having mortgages with ANZ and I found their valuation to be very conservative. Would changing to NAB give me a lot of borrowing power in general (this is for full doc, with both working)? Also I heard NAB offering SVR of like 4.5x%, is that true?

there are at least 3 UNRELATED questions here

1. Valuations - the "this lender" values low or this one values higher, is generally an urban myth. Most lenders use valex or Vms with similar standing orders, and in theory,you should get a random selection of valuers. one exception that I know of is WBC, they usually have a single valuer per PC. that can work for you or against you depending on how you use the information

if you can shop different valuers with some upfront vals you may get some different outcomes.


2. Serviceability. ANZ is on the lower ( close to lowest) side for portfolio investors with a few props and growth mindset. Nab is toward the highest.

In general, for many growth oriented people, a jump from ANZ to NAB would not be best practice, since there a re a few lenders in between that may be helpful.


3, Price/rate discussion


Serviceability, access to funds, price

For a growth investor, Choose any 2. Sometimes the planets line up and you can get a good compromise, but you will Never get Lexus Product at Toyota Price ( or even Chery Price which some people expect)

ta
rolf



ta
rolf

 

[kennyboi]

Hi kennyboi,
P.s was there a reason why your i/o with ANZ is only 2 years? im guessing it's a 2 years fixed rate? or for serviceability reasons?

The banker told me our loan size is fairly big and we are near 80% LVR. But he also reassure me that renewing IO is a 1 minute desk job with no paperwork etc. Sounds like from the feedback here, I got told wrong info! I was refinancing out of NAB for the same reason!

Now that I have a few credit enquiries against our credit files just now (and the NAB credit enquiries are also less than 1 year old), do we have no more chance to look at other suggestions WBC, CBA, STG ?

 

[Terry_w]

Why not just wait it out. Policies change. Unless you wxpect a change in the work situation?

 

[Jamie M]

The banker told me our loan size is fairly big and we are near 80% LVR. But he also reassure me that renewing IO is a 1 minute desk job with no paperwork etc. Sounds like from the feedback here, I got told wrong info! I was refinancing out of NAB for the same reason!

Now that I have a few credit enquiries against our credit files just now (and the NAB credit enquiries are also less than 1 year old), do we have no more chance to look at other suggestions WBC, CBA, STG ?

Your broker could be right - ANZ have made changes recently. It's just that in practice - these policy changes don't seem to often work as they should.

 

[albanga]

Rolf if most lenders use the same valuers then what is the reason a value cannot be Used by another lender?

Example - I just had 2 valuers, CBA and ANZ. ANZ came in at 630 and CBA at 610. NOw as you said it's likely they are from valex or vms so really the values could simply have been the opposite way around. As it turns out I need the maximum equity so have to go with ANZ.
The point I'm trying to make is that it could have easily been The opposite and I could be going with CBA so why is it that CBA won't accept the ANZ valuation?

 

[Terry_w]

Rolf if most lenders use the same valuers then what is the reason a value cannot be Used by another lender?

Example - I just had 2 valuers, CBA and ANZ. ANZ came in at 630 and CBA at 610. NOw as you said it's likely they are from valex or vms so really the values could simply have been the opposite way around. As it turns out I need the maximum equity so have to go with ANZ.
The point I'm trying to make is that it could have easily been The opposite and I could be going with CBA so why is it that CBA won't accept the ANZ valuation?

Legal issues. Valuers contract with the lender instructing. They will only allow the valuation to be used for this purpose.

 

[devank]

Who cares about the paper work if your broker is doing the work?

This is what I learnt about ANZ vs NAB (& AMP)
1. ANZ is more strict on serviceability than many others including Homesite. So use them first.
2. NAB can give you more money (along with AMP). So use them when you can't go to other ones.
3. AMP has issues with >10 props. So use them before hitting 10. Also I believe AMP takes your portion of the existing mortgage (generally 50% if you are buying as couple) to calculate your own serviceability. This could be handy when one person doesn't produce enough income.
4. Use NAB for dual occs. ANZ has less LVR for dual occs.

I'm not a broker... so correct me if my 'general' understanding is wrong.

 

[wobbycarly]

I recently changed an ANZ P&I to IO with a 5 min phone call. Saved me $600/month.

 

[Rolf Latham]

Rolf if most lenders use the same valuers then what is the reason a value cannot be Used by another lender?

Example - I just had 2 valuers, CBA and ANZ. ANZ came in at 630 and CBA at 610. NOw as you said it's likely they are from valex or vms so really the values could simply have been the opposite way around. As it turns out I need the maximum equity so have to go with ANZ.
The point I'm trying to make is that it could have easily been The opposite and I could be going with CBA so why is it that CBA won't accept the ANZ valuation?

Risk management

Put ur self in the place of the lender

Ta
Rolf

 

[Redom]

Their call centre seems to be in India. Did that affect quality of service?

Thanks

I personally haven't had a problem with this before - generally I find that they're better trained than some of the Telco's/utilities staff that have their call centres based there. But there's a thread here with others personal experiences if your looking for more info.

In terms of service - ANZ and NAB are pretty similar. NAB generally slightly better on price, although of late, i'm finding that ANZ are pricing very well too(can 2nd what Mick C has pointed above, although ANZ are usually a touch higher than NAB).

In terms of cash outs/investor friendliness, both are reasonably good.

ANZ lack in the servicing calculator (treatment of existing debt is harsher), so as the portfolio grows, often need to move out. As someone else put it, their useful for aggressive investors early in the piece, but not so much down the track.

Adding to devank's comments, ANZ's particularly good for fast growing self employed (1 year financials).

Cheers,
Redom