Deals are available only to high-income borrowers
ANZ is now testing a new mortgage product designed for Australia’s wealthiest borrowers with exclusive deals available only in 145 of the nation’s over 3,000 postcodes, including affluent areas like Double Bay, Rose Bay, and Bronte in Sydney.
These special mortgages, offered to individuals earning upwards of $400,000, will allow interest-only payments, a feature currently being tested by various mortgage brokers across the market.
Interest rates on these specialised loans align with those of the broader market, but they include an additional 0.35% fee due to their customized nature.
Under the scheme, applicants must invest a minimum of $2 million but can secure loans ranging from $5 million to $8 million without the need for mortgage lenders insurance, The Australian has reported.
The initiative comes as a strategic move by banks such as ANZ to distinguish their client base into wealthier and less affluent categories, allowing them to offer better terms to those deemed to have superior creditworthiness.
Read more: ANZ reports robust lending growth
The approach, partly in response to regulatory pressures that have constrained banks’ ability to expand their loan portfolios in recent years, has drawn comparisons to similar products in the UK banking sector, which have also faced criticism for segregating the market and potentially offering perpetual advantages to wealthier segments through inheritable, interest-only loans.
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