Two major banks are warning Australian borrowers that they are cracking down on the use of Afterpay and Zip when they consider loan applications.
Both Macquarie and ING have revealed they will consider potential borrowers' use of 'buy now, pay later' (BNPL) services in mortgage and personal loan applications in the New Year.
For Macquarie customers, borrowers will have to declare details such as their monthly BNPL repayments and limits.
Meanwhile, ING has introduced policy changes which the company said are in line with recommendations laid out by the regulator, APRA, earlier this year.
Australians using buy now pay later (BNPL) schemes such as Afterpay and Zip, could soon see banks denying loan applications after two banks introduced tightened policies just this week (pictured, stock image)
Both Macquarie and ING's policy changes came into effect on Monday, December 19 - although Macquarie's won't be enforced until January 3.
After then, Afterpay or Zip style accounts will be subjected to scrutiny by the bank.
Small, short term repayments that can be paid back will reportedly be excused by ING.
'We've always taken a prudent approach to lending and consider that the policy changes are designed to support customers in meeting their repayment obligations,' a spokesperson for ING told Daily Mail Australia.
The similarly timed, yet separate decisions come from eight straight months of interest rate hikes by the RBA, cutting the borrowing capacity of potential borrowers.
Meanwhile, both Afterpay and Zip have been struggling on the sharemarket.
Afterpay saw its stock fall by over 58 percent in the past year, while ZIP fell by over 88 percent over the same period.
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