ANZ Portfolio

ANZ PortfolioSimplify your home and investment lending under one roof.

Introducing ANZ Portfolio, the flexibleand convenient way to structure your homeand investment lending to help make themost of your equity.Equity is the difference between what your home is worth and how much you owe on it.For example, if your home is worth 600,000 and you owe 200,000, you have 400,000 in equity. Over time as you reduce the amount you owe on your home, or asthe value of your home grows, your equity increases. It’s that simple.Using equity to your advantage.Depending on your circumstances, you can use the equity in your property to create orbuild your investments. For example, you could invest in property, shares or managedfunds. And if you’re looking to renovate or consolidate personal debt, equity can beused for those purposes.An ANZ dedicated mortgage expert can help you identify and unlock the equity inyour home.2

ANZ Portfolio – The simplified approach toloans and equity.ANZ Portfolio is a flexible credit limit securedagainst residential property. It enables youto put your equity to work by allowingconvenient access to a range of loan andrepayment options.position to make the most of investmentopportunities as they arise, and gives you theability to respond in your time, not the banks’.Flexible ownership structure.ANZ Portfolio enables you to pool theresources of multiple owners. Sub-accountscan be held in the names of one or more ofthe Portfolio holders. This feature allows youto structure the sub-accounts to best suit theneeds of the various Portfolio holders andprovides convenient record keeping tomanage budgets and prepare tax returns.Tailored accounts.You can establish as many as 12 sub-accountsin your ANZ Portfolio. Each sub-accountcan have its own purpose, with the abilityto cancel existing sub-accounts and opennew sub-accounts as your goals andpriorities change.Greater control over repayments.ANZ Portfolio’s sub-account repaymentoptions are designed to give greater flexibilityover how finances are managed. Sub-accountholders have the option to make principal andinterest, interest only or interest in advancerepayments.* These options make it easy toadjust repayments to match different needs.And for greater control, we offer the choiceof variable rate, fixed rate or line of creditproducts to suit your varying purposes.Cash flow efficiency.With ANZ Portfolio the primary sub-accountwill be an ANZ Equity Manager. ANZ EquityManager offers efficient cash flow bycombining the features of a line of credit withthose of a transaction account. Funds paiddirectly into the ANZ Equity Manager workdaily to reduce both the principal and interestowed, potentially saving thousands of dollarsin interest.One-off approval and simplified fees.With ANZ Portfolio a one-off approval feeand a single annual credit fee apply. Build it as you go.ANZ Portfolio puts you in control. ANZ Portfolioholders can modify or add sub-accounts astheir financial needs evolve. As long as thetotal of the sub-accounts is within the ANZPortfolio credit limit, these changes can bemade without going through further approvalprocesses. That flexibilty puts you in a greatThis means you can confidently mould yourANZ Portfolio as you choose to meet yourchanging needs without incurring on-goingfacility fees for your sub-accounts.*Not available on all sub-account types. See Portfolio Terms and Conditions for details. Deferred Establishment Fees may apply.3

A working Portfolio.Sue and Tim are at a comfortable stage of life.They have a house worth 800,000 and havebuilt enough equity in their home to considerpurchasing an investment property. A NZ Standard Variable Rate Home Loan(Principal and Interest repayments) to fundtheir existing home loan for 500,000They meet with their advisor to discussstrategies including how to invest sooner, takeadvantage of tax planning and build wealth.After exploring a number of options, the coupledecides to use the equity in their home toborrow and purchase an investment property.home loan debt, because the interest on thisis not tax-deductible.They decide to focus on repaying their existingSue & Tim 1,200,000Sue and Tim apply and are approved for anANZ Portfolio with a limit of 1,200,000which is 80% of the value of their home aswell as the newly purchased investmentproperty. They choose to create the followingseparate sub-accounts:Home 800,000Inv Prop 1 700,000ANZ Standard VariableRate Home Loan 500,000 A NZ Equity Manager (Interest Onlyrepayments) to purchase their investmentproperty for 700,000ANZ Equity Manager 700,000Year 1Sue & TimThree years on.It’s been three years and Sue and Tim havereduced their home loan to 300,000. As aresult they are not using their full ANZPortfolio limit, so they decide to purchaseshares and request a separate sub-accountwith a line of credit for 50,000. They alsowant to purchase a new car, so they requestan ANZ Standard Variable Rate SupplementaryLoan sub-account for 50,000. 1,200,000Home 800,000ANZ StandardVariable RateHome Loan 300,000Year 34Inv Prop 1 700,000ANZ EquityManagerANZ EquityManager 700,000 50,000ANZ StandardVariable RateSupplementaryLoan 50,000

Five years on.Fast-forward five years and the couple’s homeloan is down to 100,000. They have alsomanaged to pay off the car loan. Sue and Timrealise that it’s a great time to invest in asecond investment property. They find one for 350,000 and because the amount needed iswithin their Portfolio limit, they simply requestanother sub-account.Sue & Tim 1,200,000Home 800,000By using their additional assets assecurity, Sue and Tim could now applyto increase their ANZ Portfolio limit andpursue other investment opportunities.ANZ StandardVariable RateHome Loan 100,000Inv Prop 1 700,000ANZ EquityManagerANZ EquityManager 700,000 50,000ANZ StandardVariable RateHome Loan 350,000Year 5The big picture.It’s important to note that Sue and Tim have along-term investment strategy to build wealth.By gearing to invest and structuring theirsub-accounts accordingly, the couple couldbenefit from increased returns, tax advantages,and faster wealth accumulation. Their personalcircumstances such as income, marginal taxrate, risk appetite and other factors have allbeen taken into consideration.Something to consider.Gearing is not without risk and youshould consider your own risk profile,your time frame and your individualcircumstances before commencing anygearing strategy. Gearing increases yourpotential profits but it also increasesyour potential losses. You should speakto a qualified professional advisor towork through the relevant issues.If you’re intrigued by Sue and Tim’s example andwant to find out more about ANZ Portfolio, talkto one of ANZ’s dedicated mortgage experts.5

By now you may have some questionsabout ANZ Portfolio. Here are theanswers to some common queries.How much can I apply and be approved for?Your borrowing power is determined by lookingat your income and financial commitments,your current savings and credit history and theupfront value of security that you provide.How easy is it to manage?ANZ Portfolio is designed to be simple tomanage. You stay in control of up to 12sub-accounts with convenient access to fundsand the ability to establish and maintainsub-accounts quickly and easily. Accountmanagement is simplified further withreduced paperwork and uncomplicatedaccount statements.Can I adjust the sub-account limits?Within the ANZ Portfolio credit limit you canre-arrange the limits of the sub-accounts atany time.† So if your financial situationchanges or an investment opportunity arises,you can shape the sub-accounts to match.*Not available on all sub-account types. See Portfolio Terms and Conditions for details.† Subject to the relevant sub-account terms and conditions set out in Portfolio Terms and Conditions. Deferred Establishment Fees may apply.7

Talk to us today, we’ve got time to listen.For more information about ANZ Portfoliocontact our dedicated mortgage experts on1800 035 500, 8am to 11pm (AEST) sevendays a week, drop into your local branch, visitwww.anz.com/homeloans or we can come toyou. And if you’d like to discuss your broaderfinancial needs and wealth-building strategies,speak to an ANZ Financial Planner.What are the repayment options?You may want to treat different sub-accountsin different ways. ANZ Portfolio givessub-account holders the option to repayeach account in the manner they choose,depending on the sub-account type. Theseoptions may include principal and interest,interest only or interest in advance payments.*Will I receive statements?With ANZ Portfolio you will receive regularstatements for the sub-accounts as well asan ANZ Portfolio summary statement detailingthe overall position. So whether you need aconvenient record of your assets and equityfor tax returns or simply want to makebudgeting easier, ANZ can help.Australia’s most awarded home lender.ANZ is Australia’s most awarded home lender,having been named CANNEX Money magazine’sHome Loan Lender of the Year in 2008, 2007,2006 and 2005, and CANNEX Personal Investormagazine’s Home Lender of the Year in 2005,2004, 2002, 2001, 2000 and 1999. So whyspend countless hours searching for the righthome lender? Independent experts have doneall the hard work for you.What are the ANZ Portfolio interest rates andfees like?ANZ offers competitive rates that are easy tounderstand. There is a single annual fee tomanage your ANZ Portfolio and a one-offapproval fee. This fee structure means youcan set up and change the sub-accounts at noadditional upfront establishment or approvalcosts, providing the total sub-account balanceis within the ANZ Portfolio credit limit.8

Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522. ANZ’s colour blue is a trade mark of ANZ.**CANNEX Money magazine’s Home Loan Lender of the Year 2008, 2007, 2006, 2005. CANNEX Personal Investor magazine’sHome Lender of the Year 2005, 2004, 2002, 2001, 2000 and 1999. Many of ANZ’s home and residential investment loanswere also awarded CANNEX mortgage star ratings in 2009. Ask us for details.www.anz.com

Home Loan 100,000 ANZ Equity Manager 700,000 ANZ Equity Manager 50,000 ANZ Standard Variable Rate Home Loan 350,000 Inv Prop 1 700,000 Home 800,000 The big picture. It's important to note that Sue and Tim have a long-term investment strategy to build wealth.