Transcript - ANZ Flexible Home Loan

How you could pay off your home loan faster with an ANZ Flexible Home Loan.

Designed for customers who are good at managing their money, this option could help pay off home loan sooner, while also providing access to credit when needed.

A Flexible Home Loan is a revolving credit facility on an everyday bank account. 

A bit like an overdraft. 

Think of it like a jug.

The empty jug represents the money you owe: What you’re paying interest on.

Using your money to fill up the jug – paying back what you owe – is your goal. The less money you owe, the less you’re charged in interest. And as interest is calculated daily, you want to keep the jug as full as possible, for as many days as possible.

One way to fill the jug fast, is to have your income go straight into the account. You could  then use your Flexible Home Loan account as your everyday account – for things like groceries, bills, loan repayments, life!

Or, some customers pair their Flexible Home Loan account with a credit card that has interest-free days. They put their day to day spend on the credit card. Then, importantly, they use their Flexible home loan to pay off their credit card balance in full before they're charged interest on it. This helps to keep the jug as full as possible for as many days as possible, meaning you’re charged less interest. As you repeat the cycle, it should get fuller and fuller. As long as your expenses (including interest and the Flexible Home Loan monthly fee) are less than your income.

When the jug is full... Congratulations!

You’ve covered that portion of your home loan, and are no longer paying interest on it. What you do next is up to you. Some customers keep the money available to use or make a lump sum payment towards other home loans, and start the cycle again.

Remember, the flexible nature of the loan means it often comes with a higher interest rate, that goes up and down in line with market changes. It also comes with a monthly fee. This loan type is generally chosen by customers who are confident with managing their finances and are committed to getting that jug full!

For customers that are good at managing their money, a flexible loan can be a way to pay off their home loan faster and pay less interest.

Watch our other videos to find out how you can restructure your home loan to suit you.

If you have any questions, talk to us today.

Important information

ANZ lending criteria, terms, conditions, and fees apply. Interest rates and fees are subject to change.  

A copy of the Bank's General Disclosure Statement  under the Reserve Bank of New Zealand Act 1989 is available on this website or on request from any ANZ branch, free of charge.

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