ANZ has written to brokers clarifying its treatment of buy now pay later arrangements in loan serviceability assessments.

Short-term BNPL arrangements, usually between four and six instalments, will be included in the customer’s general living expenses.

Facilities that have an ongoing limit will be treated as a credit card and facilities that have a fixed term will be treated as a personal loan.

Previously, the bank treated all BNPL arrangements as living expenses.