ANZ Introduces Policy Changes

ANZ has extended the maximum loan term on an ANZ Business Loan of less than $1 million from 15 years to up to 30 years when secured by suitable commercial property.

An ANZ Business Loan of less than $1 million with a loan term of up to 30 years when secured by suitable commercial property, could provide your customers with more choices to help them run or grow their business.

While the total cost of an extended-term loan of up to 30 years will be higher than a shorter-term loan, the potential benefits may help them to keep their business moving.

Effective 10 August 2020, customers may also be eligible for an interest-only repayment term of up to 10 years on an ANZ Business Loan of less than $1 million with a term of 20 years or more, when secured by suitable commercial property.

*Some important things to keep in mind:

The extended loan term of up to 30 years, and the extended interest-only repayment term of up to 10 years on a loan term of 20 years or more, only applies to ANZ Business Loans of less than $1 million that are secured by suitable commercial property (excludes Business Mortgage Loan, Agri Finance Loan and Asset Finance loans). Please contact me or your ANZ Business Banker to discuss whether these options are available for your customer.

Eligibility and credit criteria will apply, including:

  • Total credit facilities with ANZ, including new loan funds as part of the application and any credit facilities held by related entities, must be less than $1 million; and
  • Provision of security acceptable to ANZ, meeting ANZ's security requirements including minimum security coverage and suitable security location.

The total cost of an extended-term loan of up to 30 years will be higher than a shorter-term loan, and will usually result in:

  • A lower amount of principal being repaid in each regular repayment; and
  • The total amount of interest payable being higher than a shorter-term loan as a result of the longer loan term during which interest is paid.

Reference material:

  • Please refer to the attached flyer for more information and eligibility criteria
  • The attached flyer can be provided to customers who want the information to read or take away.