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
||Net amount financed
|Between $25,000 and $50,000
||Between $10,000 and $50,000
“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.