The Property Academy Podcast Why mortgages just got $12,000 cheaper for some first home buyers⎥Ep. 2021
Mar 24, 2025
They unpack ANZ’s sudden cut to low equity mortgage charges and what that means for buyers with small deposits. They explain how the change can save some first home buyers up to $12,000 on costs. The hosts compare other banks’ approaches and highlight risks if house prices fall. They also explore who else stands to gain from the policy shift.
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ANZ Removes One-Off Low Equity Fee
- ANZ permanently removed the one-off low equity premium that used to be charged to low-deposit borrowers.
- The temporary removal began in late 2024 and is now permanent for both first-home buyers and investors, lowering upfront costs.
Calculate Exact Savings From Dropped Fee
- Buying with a 10% deposit on a $600,000 mortgage now saves about $4,500 because ANZ no longer charges the 0.75% low equity premium.
- With a 15% deposit the prior 0.25% fee equalled roughly $1,500 on a $600k loan, so savings scale with LVR.
Investors Benefit When Settling High LVR Deals
- The change also helps investors who hit 85% LVR limits because ANZ won't add the previous upfront fee when settling.
- That can let investors or off-plan buyers settle even if values fall during construction without extra upfront charges.