ANZ has announced plans to discontinue its Breakfree package, aiming to simplify its home loan offerings. The Breakfree package, which offered a discounted interest rate and allowed customers to bundle their home loan with other products such as a credit card and an everyday banking or offset account, will be removed from sale.
Mark Hand, ANZ Group Executive Australia Retail and Corporate, stated: “We are on a mission to improve the home loan experience for our customers and this is a significant change that will help us reach that goal."
The new approach provides more choice for customers in structuring their home loans while retaining benefits like a discounted interest rate without an annual package fee. "This is really good news for our home loan customers who only want to pay for the products and features they value and choose to use," Hand added.
ANZ is the first major Australian bank to remove such a package. Starting in March, ANZ will offer three simplified home loan products: ANZ Standard Variable; ANZ Fixed; and ANZ Simplicity Plus. These options come with no ongoing ANZ fees. Customers seeking an offset account can opt for it at $10 per month.
Under this new structure, several fees will be eliminated including loan approval fees, administration fees, valuation administration fees, progress payment fees, renegotiation fees, and guarantor administration fees.
Existing Breakfree package customers will keep their current interest rate discounts when transitioned to the new simplified offering in September. This initiative aims to make it easier for customers to understand their options clearly and make informed decisions.