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The big four bank has released some new commission structures for its asset finance lending.
ANZ has warned that brokers submitting asset finance (including commercial) applications for themselves, or on applications in which they are party, will not receive any commission for the deal.
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ANZ has also said that the rate on the transaction will be discounted by 200 basis points for consumer applications and at the base rate for commercial applications.
While the bank has confirmed that online brokers can submit applications directly via the ANZ Asset Finance portal as per normal, they should advise the assessor in the comments section that they are party to the transaction. Those who are not online brokers should submit applications via the broker offline support team.
As there are no auto approvals for personal applications, a manual assessment will need to be undertaken.
The bank reiterated that personal applications will still be required to meet ANZ Asset Finance requirements and must follow ANZ’s policies and procedures.
ANZ has also updated its replacement/refinance and Easy Upgrade Finance (EUF) policy.
The bank’s asset finance retail credit requirements currently refer to “like for like repayment structure” and “similar finance commitment” when applying the replacement and refinance policy — also known as Easy Upgrade Finance (EUF).
While this used to be interpreted as “a replacement commitment” (only where repayments would not increase by more than 25 per cent), ANZ has said that the overall lend/risk could be substantially higher if the proposed structure included a longer term or higher balloon from the commitment being replaced.
As such, brokers will now need to ensure that they look at the original contract term, balloon (if applicable), and the amount financed in addition to the repayment frequency to ensure “like for like” is applied in both instances when applying replacement and EUF policy.
Both changes are already in effect.
[Related: Regulator denies ANZ’s sale of asset finance business]
