ANZ has temporarily introduced an assessment process allowing eligible customers to move from principal and interest (P&I) to interest only (IO) or renew an IO period for 6 or 12 months. ANZ is introducing the process in response to the financial difficulties that COVID-19 has placed on its customers.
To qualify, a customer cannot be requesting any additional lending and the loans in question must be at least 6 months old (for 6 months IO), and 12 months old (for 12 months IO), and must also be expiring within the next three months.
Other eligibility criteria includes:
- Any reduction in income must be temporary and due to COVID-19
- The customer must be employed and currently receiving income, including JobKeeper; where the loan has co-borrowers, at least one co-borrower must be employed and currently receiving income
- For customer relying on JobKeeper payments, brokers must document why they are not applying for the COVID-19 Assistance offering instead
- The customer must not be in arrears on any lending product
- Customers must not be on any COVID-19 Assistance offering at ANZ or elsewhere
- Lending involving LMI or guarantors are not acceptable
- Customers must be informed they may be eligible for the COVID-19 Assistance offering of a 6 month repayment holiday as an alternative to the IO renewal process, or else that they can make additional payments to their variable rate loan if they wish during the COVID-19 Assistance period
As your broker, we must complete the COVID-19 Interest Only Application to gauge your eligibility, as well as document the discussion with you. ANZ also requires one payslip or bank statement, before subsequently using your existing ANZ account conduct and a credit bureau check to confirm eligibility.