ANZ Home Loans

What home loans are on offer at ANZ?

Low doc home loans

ANZ offer a streamlined verification process to help eligible self employed borrowers to be approved quicker. Customers who are a director and shareholder of their own company, who have paid themselves a regular wage for at least six months, could be eligible, if they provide the following.

• A valid ABN/ACN which has been registered for 18 months

• At least one payslip less than 60 days old

• The most recent ATO income statement showing at least six months' worth of salary

Digital home loans

ANZ's digital arm, ANZ Plus is now available for both refinancing and new purchases in select states. As a digital-only platform, application and management are handled entirely through the app. You generally cannot manage this loan via traditional branches or the old internet banking portal. It includes a "multi-offset" feature where you can link an ANZ Plus Everyday account to reduce interest.

ANZ home loan review

Getting preapproval for a home loan at ANZ

As with most lending institutions, there are a few steps to getting approved for a home loan with ANZ

Identity documents

First of all, you’ll need to prove you are who you say you are. ANZ require two forms of personal identification, with at least one being photo ID, like a drivers licence or a passport. The following are also acceptable, per the ANZ website:

• Birth or citizenship certificate

• Centrelink pension card

• Medicare card

• Utilities bill (less than three months old)

• Rates notice (less than three months old)

• Tax assessment notice (less than 12 months old)

Proof of income and expenses

You will then need to demonstrate you will be able to repay your mortgage. If you are an employee, you can do this by providing your most recent payslips. Self employed people applying with ANZ might need to provide some of the following:

• Personal tax return (not older than 22 ½ months) with accompanying ATO notice of assessment

• AND business tax return, profit and loss statement and balance sheet (not older than 22 ½ months)

• OR if you receive regular wages from your company, provide ATO Income statement showing at least 6 months' income via MyGov/ATO portal and one recent payslip (no older than 60 days).

If you receive income from other sources, like rental income or dividends, you also need to provide evidence.

You then also need to show your existing expenses and debts are not too great. ANZ can look at your bank statements to get a gage on this, but if your monthly expenses are lower than the Household Expenditure Measure (HEM) for your profile, ANZ will use the HEM estimate of your monthly expenses instead.

Responsible lending at ANZ

Finally, ANZ has further safeguards to prevent unacceptably risky loans being written. The bank is the only one of the big four to not introduce exceptions to the 3% serviceability buffer, so everyone applying for a home loan with ANZ needs to show their ability to repay the loan at 3 percentage points higher.

If your loan will be 6% p.a, ANZ will only approve you if your income and expenses could incorporate the loan at 9% p.a. ANZ also has a floor rate and will generally take the higher of the two when assessing your home loan application.

ANZ also enforces a Debt to Income (DTI) limit. Debt to income is measured comparing your total outstanding debts with your annual income. If you owe $450,000 on a home loan and $50,000 on a car loan, and earn a salary of $100,000 p.a, your debt to income ratio is 5, since your total outstanding debts are five times your annual income. At ANZ, the maximum debt to income ratio is currently 7.5.

Read more: Infochoice tips for being approved for a home loan

Home loan approval times at ANZ

ANZ publishes information about average home loan approval times. At the time of publication, the following wait times are standard for a loan to be approved at ANZ.

Once the loan has been approved, it typically takes another couple of days for documents to be prepared and finalised.

First-home buyer incentives

ANZ has a cashback offer that specifically targets the entry-level market, providing a $3,000 bonus for those stepping onto the property ladder. Unlike many other bank rebates that require a refinance from another institution (which ANZ also previously offered, this offer is designed for first-time buyers.

ANZ also has a First Home Coach program, which is a specialized service designed to bridge the gap between "just getting a loan" and actually navigating the Australian property market. It is a free, no-obligation support system for first-time buyers.