Borrow
ANZ breaks free from home loan packages
The bank will no longer sell its Breakfree home loan package, which led to a $25 million fine late last year.
ANZ breaks free from home loan packages
The bank will no longer sell its Breakfree home loan package, which led to a $25 million fine late last year.
ANZ has announced it will no longer offer its Breakfree home loan package from next month in a change that has been pitched as responding to customer demand for greater simplicity.
The bank received a $25 million fine from ASIC in December for failing to provide fee waivers to over 580,000 customers with a Breakfree package or offset transaction accounts.
ANZ will become the first major bank to abandon its home loan package, which charges customers $395 per month to bundle their home loan with a credit card, bank account and offset account to receive a discounted interest rate along with other potential benefits.
“We are on a mission to improve the home loan experience for our customers and this is a significant change that will help us reach that goal,” said ANZ group executive Australia retail and corporate Mark Hand.
“We understand customers want more choice today about how they structure their home loans and our new approach provides that while retaining a discounted interest rate and no annual package fee.”
In its December quarter update last week, ANZ flagged a $140 million hit to its operating income due to changes to packages within its Australian retail and commercial business.
Filings released by ASIC indicate that more than 1.42 million ANZ customers had taken up over 840,000 Breakfree packages from their launch in 2003 through to September 2021.
The Breakfree package will stop being sold to new customers from 19 March, while existing Breakfree customers will continue to receive their existing benefits until 10 September.
From this date, the benefits will no longer apply, but customers will retain their current interest rate discounts when converted to ANZ’s simplified home loan offering.
ANZ will offer three simplified home loan products from March with no ongoing ANZ fees, and customers will be able to choose to add an offset account for $10 per month.
“This is really good news for our home loan customers who only want to pay for the products and features they value and choose to use,” said Mr Hand.
“We’ve been speaking to them and they want simple options with a competitive interest rate and that is what we are now providing.”
RELATED ARTICLES
Loans
CBA launches digital home loan with 10-minute application
According to the bank, Unloan will provide a single low-cost interest rate to borrowers with an application time of as little as ten minutes. Read more
Loans
Are central banks weighing the economic pain of rate hikes?
The hype around interest rate hikes usually centres around the urgent and fundamental need to alleviate the consequences of inflation – but does this monetary policy do more harm than good? Read more
Loans
As rates begin to rise, how much more will new borrowers pay?
Mortgage holders could be asked to pay over $1,000 more per month due to rising interest rates. Read more
Loans
New investor home loan commitments climb to a record high
The value of new investor loan commitments reached $11.7 billion in March. Read more
Loans
Major banks announce interest rate changes
Following the RBA’s first rate hike in 11 years, the big four banks have tweaked their home loan variable interest rates. Read more
Loans
Up to $400bn of fixed rate home loans tipped to roll off into variable rates
A surge of refinancing is anticipated in the next couple of years. Read more
Loans
‘Liar loans’ most prevalent at ANZ, survey finds
UBS has identified an increase in factual misstatements coming from ANZ’s mortgage customers. Read more
Loans
How will rising rates impact mortgage stress?
Mortgage holders could face thousands of dollars in extra repayment costs per year as a result of impending rate hikes. Read more
Loans
CBA launches digital home loan with 10-minute application
According to the bank, Unloan will provide a single low-cost interest rate to borrowers with an application time of as little as ten minutes. Read more
Loans
Are central banks weighing the economic pain of rate hikes?
The hype around interest rate hikes usually centres around the urgent and fundamental need to alleviate the consequences of inflation – but does this monetary policy do more harm than good? Read more
Loans
As rates begin to rise, how much more will new borrowers pay?
Mortgage holders could be asked to pay over $1,000 more per month due to rising interest rates. Read more
Loans
New investor home loan commitments climb to a record high
The value of new investor loan commitments reached $11.7 billion in March. Read more
Loans
Major banks announce interest rate changes
Following the RBA’s first rate hike in 11 years, the big four banks have tweaked their home loan variable interest rates. Read more
Loans
Up to $400bn of fixed rate home loans tipped to roll off into variable rates
A surge of refinancing is anticipated in the next couple of years. Read more
Loans
‘Liar loans’ most prevalent at ANZ, survey finds
UBS has identified an increase in factual misstatements coming from ANZ’s mortgage customers. Read more
Loans
How will rising rates impact mortgage stress?
Mortgage holders could face thousands of dollars in extra repayment costs per year as a result of impending rate hikes. Read more
