The major bank has announced that it will extend the maximum loan term on business loans under $1 million to 30 years.
ANZ has announced that it will extend the maximum loan term on ANZ Business Loans under $1 million from 15 years to 30 years, when secured by suitable commercial property.
The change will be effective from 1 June 2020, however is not applicable to Business Mortgage Loan, Agri Finance Loan and Asset Finance loans.
Term changes on ANZ Business Loans will be subject to eligibility and credit criteria, including:
According to ANZ, this may provide customers with an alternative to using residential property as security for their loan, and give customers “more choice to help them run or grow their business”.
The bank made note that the total cost to borrowers for an extended term loan of up to 30 years will be higher than a shorter term loan, and will usually result in:
The news comes days following an announcement that ANZ was raising two-year fixed rates on home loans by 10 basis points, bucking the trend of other lenders lowering their rates.
The bank’s two-year Fixed Home Loan rate has increased from 2.34 per cent to 2.44 per cent (comparison rate 4.10 per cent), effective 22 May 2020.
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Hannah Dowling is a journalist for The Adviser and Mortgage Business.
Prior to joining Momentum Media, Hannah worked as a content producer for a podcast catering to property investors. She also spent six years working in the real estate sector at a local agency.
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