Boost for potential buyers as ANZ may waive one of its fees - broker

The country's biggest bank is making buying a house a little cheaper for some buyers, as brokers say competition is heating up for mortgage business.

Edge Mortgages director Glen McLeod said ANZ was allowing customers to apply to have their low-equity premium waived.

This is a fee that is charged when someone has less than 20 percent deposit. It can vary from 0.25 percent of the loan amount for people with just under a 20 percent deposit through to 2 percent for those with less than 10 percent.

The fee is common across most lenders, but some apply a margin to the interest rate charged rather than an upfront fee.

"If you're over 80 percent [loan-to-value ratio] we can request that you don't have a low equity premium on your rate. You'll actually get a fairly good rate now. It's an area where they're deciding to compete, which is interesting."

He said ANZ had recently shaken up the market with a one-year offer of 5.65 percent, and this seemed like a continuation of that.

"That was taking business from their competitors and their competitors reacted."

A relatively small number of customers would be affected by the latest change but it would be meaningful to them, he said.

Whether the premium would be waived would be decided on a case-by-case basis.

He said brokers had also been told they could request non-utilisation recovery fees be waived, too. That is charged when people reserve a rate and then do not use it.

ANZ has been approached for comment.