Extra ways to reduce interest costs

If you lock in a lower rate and keep your repayments the same, you could reduce your loan term. By doing that you may pay less interest over the life of the loan. 

If you can, pay any loan establishment fees or legal fees up front from your own savings rather than adding this amount to your loan.

You can make your first repayment as early as two business days after your loan draws down. Interest is calculated daily, so every day you have a reduced loan balance, the less interest you will pay over the life of your loan.

Review your service providers to ensure you’re getting the best value. Any money you save on utilities, for example, can be put towards your loan. 

Circumstances change so be sure to review your loan regularly. If your circumstances improve, consider whether you can afford to increase your repayments. To give you the ability to make extra repayments whenever you like, consider a floating ANZ Home Loan or an ANZ Flexible Home Loan which provide greater flexibility to make extra repayments.

If you have an ANZ Home Loan with a fixed rate, there are a couple of ways you can make extra repayments without being charged an Early Repayment Recovery:

• If it’s the first increase that year, you can increase your regular repayments towards your home loan by up to $250 a week.
• Plus, each year you can make an extra lump sum repayment that’s no more than 5% of your current loan amount.

The year runs from the date, or the anniversary of the date, that your fixed rate period started.

Early Repayment Recovery (sometimes called a ‘break fee’) is an amount you pay us to reflect the loss we incur when you repay some or all of the loan early during a fixed rate period.

Talk to us before you decide to repay early, as any Early Repayment Recovery could be large.  To make a lump sum payment on your fixed ANZ Home Loan, call us on 0800 269 4663.

With an ANZ Home Loan on a floating rate, you can make extra repayments whenever you like.

In ANZ goMoney or Internet Banking , the minimum repayment amount  is $100 and you can’t pay off your loan in full. To make a payment less than $100, or pay your loan off in full, call us on 0800 269 4663.

To make a lump sum payment in goMoney or Internet Banking, choose the loan to make the payment to and select Make a lump sum payment. Choose an account to pay from, enter the payment amount, then select Continue. Check and confirm the payment.