ANZ becomes more aggressive with low equity loans
ANZ, which is the last of the big banks to keep a two-tiered pricing structure for its home loans, has taken a half step to change this model.
Wednesday, April 23rd 2014, 10:53AM 
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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.
- Loans with a deposit of 20% or more will be charged the carded rate (or a rate the borrower negotiates).
- Loans with a 10% to 20% deposit will be charged from the carded rate card, plus the low equity premium.
- Loans with less than a 10% deposit will be charged the carded rate, plus 0.50%, plus the low equity premium.
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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