ANZ targets investors with 'portfolio' loan

by Adam Smith20 Jul 2009

As the property investment sector shows signs of recovery, a new mortgage product targeted at investors has been launched by ANZ.

'ANZ Portfolio' enables property investors to bring together all of their home and residential investment lending under a single credit limit.

The product is being sold across all the bank's distribution channels.

It has been developed on the back of research commissioned by ANZ which found more than 50% of investors go on to purchase more than one investment property and 60% of investors secure an investment loan over existing property.

Data released by AFG in its June mortgage index showed the proportion of loans to investors rising to 29.0%, up from a low of 24.5% in March and heading back towards its long term norm for this sector; a range of 30% - 35% of all mortgages sold.

ANZ general manager Mortgages Michael Bock said ANZ Portfolio was designed specifically for investors looking to build wealth over the long term using equity in their property portfolio.

He said the turmoil in global financial markets in the past year had highlighted the relative security of investing in the residential property market, which over the past two years, has been much less volatile than stocks.

ANZ Porfolio features the ability to create up to 12 sub-accounts from a variety of loan types including a line of credit, fixed or variable rate mortgage under one single limit

The loan comes with a one-off upfront fee of $750 and an annual fee of $550 (payable in arrears) covering all sub-accounts and ongoing sub-account administration.

Applications are subject to ANZ's normal lending criteria and ANZ Portfolio's credit limit is established on a customer's ability to repay the entire credit facility.

Related stories:

Investors optimistic property values on the rise - Investors are being lured back into the property market by strong rental yields and an overall improvement in confidence and market conditions, reports RP Data.

 

COMMENTS

  • by Peter T 22/07/2009 10:07:40 AM

    I support ANZ, they seem to be the only major that really respects brokers, but I can't support this product. Under the guise of making things more flexible for customers, this product cross-collateralises everything the borrower owns. This is great for the bank as it gives them ultimate control over the borrowers portfolio, but over the longer term the borrower completely looses control over their borrowings. It's easy initially, but actually hurts the serious investor wanting to have more than 2-3 properties in their portfolio.

  • by BBB 22/07/2009 11:02:27 AM

    Saw this product yesterday , Have the ANZ woken up , to my mind yes , better products , shorter approval times and a willingness to work with brokers.Their CEO does from a culture where brokers are regarded as part of the market and he obviously want to deal with em. GIVE A GO as well as the non bank lenders