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ANZ Asset Finance and Policy Updates

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ANZ have just released some new commission structures for their asset finance lending. If you write asset finance with ANZ, please read on.

  1. Requirements for submission of personal/own Asset Finance applications

Effective Date: Immediate

Did you know brokers can submit their own application for finance to ANZ? But please note: where you are submitting a transaction that is for yourself or a transaction where you are a party, including a Commercial application where you are the director or beneficiary/beneficial owner, there will be no commission and/or BOF paid under any circumstances.

The rate on the transaction will be discounted by 200bp for Consumer applications and at the base rate for Commercial applications.

What you need to do:

The process when submitting these applications is as follows:

  • Online brokers can submit applications directly via the ANZ Asset Finance portal as per normal.
  • In the comments section, please advise the assessor in the application that you are a party to the transaction.
  • There are no Auto Approvals for own applications – please refer them for manual assessment.
  • Offline Brokers can submit the application as per normal via the Broker Offline Support team.
  • In your application, please advise that you are a party to the transaction.

In every case, your own application is required to meet ANZ Asset Finance requirements and you must follow ANZ policy and procedures when making your application.

  1. Replacement/Refinance and Easy Upgrade Finance (EUF) Policy – Update

Effective Date: Immediate

Background to the change:

The Asset Finance Retail Credit Requirements 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).  In the past, this has been interpreted as “a replacement commitment” only where repayments would not increase by more than 25%. However, the overall lend/risk could be substantially higher if the proposed structure included a longer term or higher balloon from the commitment being replaced.

What you need to do:

When applying replacement and EUF policy, ensure you 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.

If you have any questions, please speak to you ANZ Asset Finance BDM. If you have any questions about adding asset finance to your business offering, chat with one of our dedicated Connective Asset Finance BDMs today (Stephen Light on 0499399433 and Phillip Meehan on 0488788839)