The ANZ Money Saver Home Loan: What’s in a Name?

Home loans are a major long term financial commitment, so any loan called a “Money Saver” such as the one offered by ANZ is sure to attract attention.

A basic home loan product such as the ANZ Money Saver is attractive because of its lower standard variable rate. Remember, what a bank deems as a ‘lower’ rate is generally only measured against the rates offered through their other home loan products, so that same rate may not be considered low when compared with non-bank lenders.

ANZ offer the Money Saver Home Loan to owner-occupier borrowers, giving the option to make repayments on the principal and interest or interest only. The minimum loan amount is $50,000, and eligible homebuyers can borrow up to 95% of the value of the property. With loans of over 80% of the Loan to Valuation Rate (LVR), Lenders Mortgage Insurance is required to protect ANZ in case you default on any loan repayments.

The ANZ Money Saver Loan offers some basic features but remember to always read the fine print. For example, ANZ offer a Repayment Holiday which enables borrowers to take a three month break from making loan repayments.

Does a holiday from repayments sound appealing? Bear in mind that while you may have extra funds for three months, after the holiday period your repayment amount increases so that you will still repay the loan within the set term, unless you make the holiday repayment amount as a lump sum. Plus, a $90 fee applies to suspend your Money Saver repayments, compared to just $60 for other ANZ home loans.

ANZ Money Saver also allows for a redraw facility for eligible borrowers, but there is a minimum withdrawal amount of $2000, with a fee of $50 for each transaction. Other ANZ home loans have the same minimum withdrawal amount, but with a fee of just $25. If you need a redraw facility on your home loan, explore the options offered by other lenders to find the best deal for you.

A home loan is a long term commitment, so remember to look into the features, flexibility and hidden fees of any home loan product offered before you are locked in to something that doesn’t suit you. If you wish to repay your ANZ Money Saver loan in full within the first four years of your loan term, or would like to refinance our loan with another lender, a Deferred Establishment Fee of $700 will apply.

When considering a home loan such as the ANZ Money Saver, always think ahead of the loan flexibility that you may not necessarily need in the immediate future, but would be useful to your financial situation a couple of years in the future.

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