ANZ have recently released a renovation product for their existing customers which allows them to top-up on their home at a discounted rate of 2.50% fixed for 3 years - a product that is super valuable in the current environment with uncertainty around interest rates and the rising costs around us.
The loan is available for use for Bathrooms, Kitchens, Roof Upgrades, Flooring, Outdoor Living Upgrades, Interior/Exterior Painting, etc. and can certainly reduce the interest costs that relate to a renovation. For example a current 3-year rate at the time of writing is 5.19%, on a $50,000 loan (assuming interest only) you would pay $2,295 p/a in interest or $7,785 over the 3-year period. Based on having a lower rate of 2.5% under ANZ's Reno Loan you would instead pay $1,250 p/a or $3,750 over 3 years (less than half of what you would've otherwise paid).
The loan amount can be between $3,000 and $50,000, and must fit within the required LVR thresholds (e.g. 70% on investment properties and 80% on owner-occupied properties) to be eligible for the special rate. Anything beyond $50,000 would be subject to standard terms and rates, however you could be eligible for more than one of ANZ's products at the same time - for example you may be able to have a Good Energy Home Loan and an ANZ Reno Loan at the same time.
For more information on this please get in touch with us here.