ANZ changes asset finance commissions

The bank has introduced a number of pricing and commission changes following ASIC’s review of flex commissions in the car industry

ANZ changes asset finance commissions

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The Australia and New Zealand Banking Group (ANZ) has introduced a number of pricing and commission changes around its consumer asset finance products.

These changes follow ASIC’s review of flex commissions in the car finance industry and come into effect from 1 December, an ANZ broker note said today (27 November).

Firstly, the bank will be replacing its base rate with a “consumer customer rate” which will be notified to brokers on a monthly basis.

“The Consumer Customer Rate will be the maximum annual percentage interest rate that may be charged to a customer under a consumer asset finance loan,” the note said.

Brokers can discount the Consumer Customer Rate by up to 200 basis points at their own discretion.

The bank is also introducing a new asset finance commission (AFC) for new and used vehicles as follows:
 
New motor vehicles and other goods Used motor vehicles
Net amount financed AFC Net amount financed AFC
<$25,000 $1,000 <$10,000 $500
Between $25,000 and $50,000 $1,500 Between $10,000 and $50,000 $1,000
>$50,000 $2,000 >$50,000 $1,500

“Other goods” include caravans, boats, motorcycles and jet skis.

The total AFC will also be reduced in proportion to any Consumer Customer Rate following a specified formula set out in the broker note.

Finally, ANZ has also said it will finance a broker origination fee of up to $900 (plus GST).

“As this is a fee charged by the broker, the broker will continue to have the discretion to charge a lower or higher amount or waive the fee altogether.”

Commercial commission calculations at ANZ remain unaffected.

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