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.


FixedMore details
Free Redraw Facility
Free Redraw Facility

Tiimely Home – Live-in Fixed Home Loan (Principal and Interest) 1 Year

    FixedMore details

    Westpac – Premier Package Fixed Options Home Loan (Principal and Interest) 1 Year (LVR 70%-80%)

      FixedMore details

      ANZ – Fixed Rate Home Loan (Principal and Interest) 1 Year (LVR < 80%)

        Important Information and Comparison Rate Warning

        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 be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. 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. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of December 11, 2023. 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

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