Boost for potential buyers as ANZ can waive one of its fees – broker

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The nation’s largest bank is making buying a home a little cheaper for some buyers as brokers say competition heats up for the mortgage business.

Edge Mortgages director Glen McLeod said ANZ was allowing customers to request a premium waiver with low equity.

This is a fee that is charged when one has less than 20 percent deposit. It can vary from 0.25% of the loan amount for people with a deposit of just under 20% to 2% for those with less than 10%.

The fee is common for most lenders, but some apply a margin to the interest rate charged rather than an upfront fee.

“If you’re over 80 percent (loan-to-value) we can get you to have no down payment on your rate actually, you’re going to get a pretty good rate now. you decide to compete, which is exciting.”

He said ANZ had recently rocked the market with a one-year offer of 5.65 per cent and this looked like a continuation of that.

“That took business away from their competitors and their competitors reacted.”

A relatively small number of customers would be affected by the latest change, but it would be significant for them, he said.

Whether the premium will be waived will be decided on a case-by-case basis.

He said brokers were also told they could request a waiver of recovery fees for non-use. This is charged when people book a fare and then don’t use it.

ANZ has been contacted for comment.