Split home loans

If you choose interest only, the minimum payment amount on your loan will be lower during the interest only period because you are not required to repay any of the loan principal. You will have to repay the principal down the track and so you may end up paying more over the life of your loan. There may be additional restrictions on the amount you can borrow or loan type you can select if you choose to pay interest only.

Choosing to repay principal and interest means that, with each repayment, you're paying off interest charges as well as some of the loan principal.

Learn more about payment types.

A comparison rate is designed to help you work out the total cost of a home loan by building the known costs like up-front and ongoing fees into that rate. It doesn’t include things like government charges, redraw fees or fee waivers. 

You can use comparison rates to help you compare the cost of different home loans with similar features. When deciding which home loan is right for you, it’s important to think about what features each home loan offers, and how much these matter to you. Keep in mind that you may not necessarily pay the comparison rate that is advertised for your loan type.  This is because, for example, you may not pay all the fees and charges which the comparison rate includes.

All our fixed and variable home loans rates shown above come with a discount off the index rate applied upfront^disclaimer(without needing to pay an annual home loan package fee). The index rate is a benchmark interest rate set by ANZ.

If you’re considering our Standard Variable home loan, you may be able to access a further discount off the index rate than shown above, depending on your situation. This is because the home loan rate discount you can access for this home loan depends on your Loan to Value Ratio (LVR) and other financial circumstances. To find out if you could access a lower rate for our Standard Variable loan, have a no-obligation chat with one of our specialists.

The fixed interest rate for your loan is the rate that applies on the day the loan is drawn down (not at the time of application) so there’s a chance it could change during that period.  If you're keen to lock in an interest rate you can do so by paying a Lock Rate fee that will secure the interest rate as it applies on the date of payment for up to 90 days.

A Lock Rate fee of $750 per $1 million of lending (or part thereof) applies.  This means a fee of $750 applies for any loan up to $1 million, then $1,500 for any loan amount between $1 million and $2 million. If you have more than one loan, the same rule will apply to each loan. Here are a few examples:

• For a single loan of $400,000, the fee would be $750
• For a single loan of $1,300,000 the fee would be $1,500
• For two fixed loans of $1,300,000 and $400,000, the fee would be $2,250

Talk to your home loan specialist for more information.

Generally, you can choose how long you would like to fix your home loan interest rate. ANZ offers fixed home loan rates for one, two, three, four, five, seven and 10-year loan terms.

When your fixed rate term ends, a variable interest rate will then apply to your home loan and your repayment amount will change. If you don’t want to stay with the variable rate, you may be able to fix your rate again for another period (talk to your lender about whether that could be an option for you). 

An advantage of a fixed interest rate is the certainty that your home loan repayments will stay the same throughout the fixed rate term. You won't have to worry about rate changes and how they could affect your repayments. This can make budgeting easier.

However, if you want to make additional repayments, pay off your loan early or refinance during the fixed rate period, you may need to pay Early repayment costs (PDF). Be careful and check with ANZ before doing this as early repayment costs can be very large, and can change from day to day.

Fixed home loan rates could work for you if your priorities are certainty and stability. Just remember that the trade-off is flexibility and the benefit of interest rate reductions (if they occur during your fixed rate period).

You may have to pay a break cost (also known as Early repayment costs (PDF) if you pay off your fixed rate loan before it's full duration, switch to another loan before the end of the fixed term or make early or additional payments. This cost can be very large and can change from day to day.

If you have money in an everyday banking account, you may choose to move it into an ANZ One offset account. You can link it to your ANZ Standard Variable loan or one-year ANZ Fixed loan to help you save on interest charges. The money you have in ANZ One will offset the amount you owe on your home loan, and you’ll only be charged interest on the difference.

A $10 servicing fee applies per month per offset account.

Find out more about offset accounts.