Surging property prices push Australian household wealth to record high
The wealth of Australian households has increased at the highest rate in over a decade, and the largest contributing factor is unlikely to come as much of a surprise: rising property prices.
New figures released yesterday by the Australian Bureau of Statistics (ABS) show that total household wealth rose by 4.3% to a record high of $12,033.5 billion in the December quarter - the largest quarterly rate of increase since 2009.
Residential assets, which includes land and dwellings, accounted for more than half of the quarterly increase in wealth, followed by superannuation balances and directly-held shares.
“The December quarter growth in household wealth was driven by rising residential property prices, reflecting record low interest rates, support through government programs such as the First Home Buyer and the HomeBuilder schemes, and pent up demand from buyers,” said ABS head of finance and wealth, Katherine Keenan.
“The growth in residential assets was seen across both owner-occupier and investor housing in the December quarter. Owner-occupier housing loans grew 1.9%, which was the strongest growth seen in four years, while investor housing loans grew 0.4%, which was the first positive growth recorded in the past two years.”
Despite the strong uptick in the December quarter, year-on-year growth in household wealth (7.0%) was actually marginally lower than the ABS’s long-term average of 7.3%.
Of course, it's worth noting that these figures represent a picture at the macro level and don’t reflect the financial positions of many Australian households around the country.
Property values rise across the board
So how much have property values been rising of late?
Well according to data released earlier this month by CoreLogic, Australian home values ‘surged’ in February by 2.1% - the highest month-on-month change recorded in Corelogic’s National Home Value Index since August 2003.
Increases were recorded in all capital cities during February, with the largest being in Sydney (2.5%), Hobart (2.5%) and Melbourne (2.1%).
“The last time we saw a sustained period where every capital city and rest of state region was rising in value was mid-2009 through to early 2010, as post-GFC stimulus fueled buyer demand,” said CoreLogic research director, Tim Lawless.
As Corelogic’s figures in the table below show, despite significant fluctuation and uncertainty at the start of the pandemic, home values have actually risen significantly in many areas over the past year - the exception being Melbourne.
Home value changes - Corelogic Home Value Index (February 2021)
Quarter | Annual | Median value | |
Sydney | 3.6% | 2.8% | $895,933 |
Melbourne | 3.5% | -1.3% | $717,767 |
Brisbane | 3.5% | 5.0% | $535,618 |
Adelaide | 2.7% | 7.3% | $478,587 |
Perth | 4.2% | 4.6% | $491,795 |
Hobart | 4.8% | 8.7% | $535,994 |
Darwin | 5.5% | 13.8% | $438,645 |
Canberra | 3.7% | 9.7% | $706,454 |
Combined regional | 5.4% | 9.4% | $438,815 |
National | 4.0% | 4.0% | $598,884 |
And with home loan rates at record lows, incentives for first-time buyers - like the FHLDS - still being keenly accessed and responsible lending laws set to be loosened in the near future, demand for property may not be letting up anytime soon.
RELATED: Risky loans on the rise, but APRA bats away concerns
Interested in even more property figures? Take a trip to our home loan statistics page to view the latest lending volumes, as well as up-to-date variable and fixed mortgage rates from the Mozo database.
Home loan comparisons on Mozo
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Unloan Variable
- Owner Occupier
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- Interest rate
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5.99
%
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- Comparison rate
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5.90
%
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- Initial monthly repayment
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$2,995
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
- Interest rate
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5.99
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5.90
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- Upfront fees
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$0
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$0.00
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$0.00
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yes - free
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no
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Basic Home Loan
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6.14
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6.16
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$3,043
Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.
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6.14
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6.16
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$350
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$0.00
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$400.00
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yes - free
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yes - free
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no
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- $150,000
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Neat Home Loan
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6.09
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6.11
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$3,027
Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.
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6.09
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$250
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$0.00
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$300.00
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yes - free
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yes - free
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no
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Special Real Deal Home Loan
- Owner Occupier
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6.09
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6.13
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$3,027
Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.
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6.09
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6.13
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$595
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$0.00
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$250.00
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yes - free
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yes - fees apply
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no
- Maximum loan to value ratio
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- $150,000
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- -
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- Variable
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Optimum Fixed Rate Home Loan
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5.69
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p.a.
Fixed 3 years
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6.34
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$2,899
Lock in a competitive interest rate and enjoy peace of mind for the fixed period. Available for owner occupied new and refinanced home loans with at least 20% deposit. Split option available as well as offset and redraw. Noapplication, ongoing or banking fees. Third Party fees may be applicable - payable within loan repayments. Extra repayments up to $20K per annum permitted. Apply online, 100% member owned credit union.
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5.69
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p.a.
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6.34
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p.a.
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$0
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$0.00
- Discharge fee
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yes - free up to $20,000 p.a. during fixed rate term
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yes - free
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no
- Maximum loan to value ratio
- 80.00%
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- -
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Unloan Variable
- Owner Occupier
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5.99
%
p.a.
Variable
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5.90
%
p.a.
- Initial monthly repayment
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$2,995
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
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5.99
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5.90
%
p.a.
- Upfront fees
-
$0
- Ongoing fees
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$0.00
- Discharge fee
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$0.00
- Extra repayments
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yes - free
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yes - free
- Offset account
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no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $10,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
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OMG Home Loan
- Owner Occupier
- Principal & Interest
- <60% LVR
- Interest rate
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5.99
%
p.a.
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6.02
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p.a.
- Initial monthly repayment
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$2,995
BCU Bank’s OMG owner occupied home loan offers a variety of great low rates depending on your deposit. Save with no ongoing annual fees. Access your extra payments when you need to through the redraw facility. Pre-approval valid for 3 months.
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5.99
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6.02
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$300
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$0.00
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$395.00
- Extra repayments
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yes - free
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yes - free
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no
- Maximum loan to value ratio
- 60.00%
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- $20,000
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- $1,500,000
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Flex Home Loan
- Fixed
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- LVR <60%
- Interest rate
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5.99
%
p.a.
Fixed 3 years
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6.34
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$2,995
Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
- Interest rate
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5.99
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6.34
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$250
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$250.00 yearly
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$300.00
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yes - free
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yes
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Express Home Loan
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6.01
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6.14
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$3,001
Get online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
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6.01
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6.14
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$134
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$10.00 monthly
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$350.00
- Extra repayments
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yes - free
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yes - free
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yes
- Maximum loan to value ratio
- 90.00%
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- $5,000
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- $3,000,000
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Neat Home Loan
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6.09
%
p.a.
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6.11
%
p.a.
- Initial monthly repayment
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$3,027
Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.
- Interest rate
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6.09
%
p.a.
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6.11
%
p.a.
- Upfront fees
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$250
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$0.00
- Discharge fee
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$300.00
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yes - free
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yes - free
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no
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- $80,000
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- $5,000,000
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Special Real Deal Home Loan
- Owner Occupier
- Principal & Interest
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6.09
%
p.a.
Variable
- Comparison rate
-
6.13
%
p.a.
- Initial monthly repayment
-
$3,027
Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.
- Interest rate
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6.09
%
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6.13
%
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$595
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$0.00
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$250.00
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yes - free
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yes - fees apply
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no
- Maximum loan to value ratio
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- -
- Type of mortgage
- Variable
- Repayment types
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Basic Home Loan
- Owner Occupier
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6.14
%
p.a.
Variable
- Comparison rate
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6.16
%
p.a.
- Initial monthly repayment
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$3,043
Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.
- Interest rate
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6.14
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6.16
%
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- Upfront fees
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$350
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$0.00
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$400.00
- Extra repayments
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yes - free
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yes - free
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no
- Maximum loan to value ratio
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- $150,000
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Flex Home Loan
- Owner Occupier
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6.14
%
p.a.
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6.38
%
p.a.
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$3,043
Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
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$250
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$300.00
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yes - free
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yes - free
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yes
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Offset Home Loan
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6.14
%
p.a.
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p.a.
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$3,043
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
- Interest rate
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6.14
%
p.a.
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6.39
%
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$350
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$248.00 yearly
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$400.00
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yes - free
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yes - free
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yes
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Basic Home Loan
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6.25
%
p.a.
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6.20
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p.a.
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$3,079
No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $10,000,000.
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6.25
%
p.a.
Fixed 3 years
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6.20
%
p.a.
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$350
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$0.00
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$400.00
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yes - up to $10,000 p.a.
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yes - free
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no
- Maximum loan to value ratio
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Offset Home Loan
- Fixed
- Owner Occupier
- Principal & Interest
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- Interest rate
-
6.25
%
p.a.
Fixed 3 years
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6.42
%
p.a.
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$3,079
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6.25
%
p.a.
Fixed 3 years
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6.42
%
p.a.
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-
$350
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$248.00 yearly
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$400.00
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yes - up to $10,000 p.a.
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-
yes - free
- Offset account
-
yes
- Maximum loan to value ratio
- 70.00%
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- $150,000
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Fixed Rate
- Owner Occupier
- Principal & Interest
- <80% LVR
- Interest rate
-
6.54
%
p.a.
Fixed 2 years
- Comparison rate
-
7.10
%
p.a.
- Initial monthly repayment
-
$3,174
Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.
- Interest rate
-
6.54
%
p.a.
Fixed 2 years
- Comparison rate
-
7.10
%
p.a.
- Upfront fees
-
$160
- Ongoing fees
-
$0.00
- Discharge fee
-
$160.00
- Extra repayments
-
yes - free up to to lesser of 5% of original fixed loan amount, or $5,000 each year
- Redraw facility
-
no
- Offset account
-
Optional - $10 per month - 1 year fixed term only
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $20,000
- Maximum borrowing amount
- -
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- $3,000 cashback for eligible First Home Buyers, $2,000 cashback when you refinance loans of $250k+, apply from 1 Dec 2022, settle within 180 days.
Read our Mozo Review to learn more about this ANZ Fixed Rate
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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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