It continues to have a higher interest rate for its low equity loans but has reduced the threshold this kicks in from an 80% LVR to 90%.
Its says, on its website, that this change applies to new fixed rates where the deposit or equity in the deal is 10%.
It does not apply to loans which are exempt from the Reserve Bank’s LVR restrictions including refinancing from another bank.
Home loans at 90% or higher LVR have an interest rate 50 basis points higher than standard rates amd all loans above 80% LVR also incur the cost of a low equity premium.
It does not display low equity rates on its website.
That low equity premium is additional to the higher interest rate and applies to all loans above 80% LVR. It applies on a variable scale – see table.
ANZ says it charges low equity fees "to recover the extra costs it incurs when lending above 80% of a property's value
LVR ratio | % of loan amount |
80.01 - 85.00% | 0.25% |
85.01 - 90.00% | 0.75% |
Over 90.01% | 2.00% |
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