June 14th 2024.
ANZ has announced a reduction in mortgage insurance for their customers residing in the top 145 wealthiest postcodes in the country. This move allows lenders to secure a 95 percent loan of up to $2 million, resulting in savings of over $102,000 in insurance costs compared to individuals living in less affluent areas.
RateCity's Sally Tindall expressed her concerns, stating that this decision may seem unjust on the surface. Toorak, Point Piper, Hamilton, Cottesloe, and 141 other elite suburbs are among those included in ANZ's latest move.
Tindall believes that this decision is a strategic one by ANZ, targeting individuals with a high net worth who are considered to be low risk borrowers. So, where exactly do these desired customers live? The majority of the selected suburbs are located in Sydney, including North Bridge, Manly, Bronte, Cremorne, and Killara from New South Wales. From Victoria, we have Brighton, Malvern, Essendon, and Lorne, while Tenerife, Ascot, and Chandler are included from Queensland. In Western Australia, ANZ has chosen Crawley, Mosman Park, and City Beach, but none of the selected suburbs are from South Australia, Tasmania, the Australian Capital Territory, or the Northern Territory.
According to ANZ, borrowers must still meet strict lending criteria, such as having a high income and a history of timely repayments. However, this move may be a way for ANZ to attract wealthy Australians to choose their bank over their competitors.
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