Use BNPL? It could now be harder to get a home loan with ANZ

author-avatar By on December 18, 2020
Use BNPL? It could now be harder to get a home loan with ANZ

ANZ has sent a clarification to its broker network to treat some buy now, pay later expenses as either a credit card or personal loan.

BNPL facilities with ongoing lines of credit will be treated as a credit card, and fixed-term facilities will be treated as a personal loan, as first reported in Banking Day.

Short-term arrangements between four and six instalments will be treated as general living expenses.

Afterpay typically uses an instalment program, while Zip typically uses an ongoing arrangement.

The big bank previously treated all BNPL arrangements as general living expenses, and a spokesperson from ANZ told the bank had been receiving increased numbers of questions from brokers on how to treat BNPL arrangements.

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval
FixedMore details

Basic Home Loan Fixed (Principal and Interest) (LVR < 70%) 3 Years


Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. Rates correct as of October 17, 2021. View disclaimer.

Broker assessments can then be used to determine mortgage serviceability, and ultimately how much a borrower can borrow. 

Credit cards can still attract interest rates in excess of 20% p.a, while unsecured personal loans can exceed 10% p.a interest rates.

Financial Counselling Australia CEO Fiona Guthrie says there's a "loophole" in the Credit Protection Act of 2009 that "will have to be closed".

"ANZ is being a prudent and diligent banker...ANZ is just belling the cat," Ms Guthrie told

"BNPL is debt and so should be treated like all other debt and factored into capacity to repay assessments."

Previously, ANZ has said there is 'no value' in BNPL.

"It doesn’t really fit into improving the financial wellbeing of our customers. I’d rather that we put every dollar and every moment of our time into being better at the core things we do," ANZ CEO Shayne Elliot told The Australian.

See Also: Would Credit Regulations Kill BNPL?

ANZ's note to brokers comes after a large US bank banned BNPL debt on some of its platforms.

In September, NAB and CommBank introduced 'zero interest' credit cards, that mimic BNPL in many ways, but do attract a monthly fee when in use.

CommBank also has a $300 million investment in BNPL provider Klarna.

Westpac sold its 10.7% stake in Zip in October after it launched a 'banking as a service' partnership with Afterpay. 

Photo by Tierra Mallorca on Unsplash


The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure,, Performance Drive and are part of the Firstmac Group. To read about how manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

Latest Articles

Harrison is's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

Be Savings smart.
Subscribe for free money newsletters.

By subscribing you agree to the Savings Privacy Policy