There is no doubt that a great deal has changed over the last 3 months with the spread of COVID-19 across the globe.

We’ve seen the COVID-19 case numbers breakthrough 500,000 worldwide with the majority of countries across the globe now reporting active cases. Hundreds of thousands have and will lose their job over the coming months, and while we will all get through this together, it’s important to ensure that you have a financial strategy in place.

While the rate cut announced by the Reserve Bank of Australia (RBA) taking us down to a record low rate of 0.25%, this won’t be enough for many Australian households to get through. As rents drop and landlords face greater cash flow pressure, this could also cause further cash flow stress for many property investors also.

This week we’re exploring what each of the key lenders have announced to allow home owners and landlords who have a mortgage to get through this volatile period.

ANZ

  • Customers can seek to pause their home loan repayments for 6 months, with a review at the 3 month mark
  • Business customers can request a 6 month deferral on business loans also
  • Businesses can also make temporary increases in overdraft facilities
  • Will allow customers to break term deposits without any fee impact or penalties imposed

Bank of Queensland

  • Deferral of loan repayments for home loans allowed for residential customers
  • Will allow customers to break term deposits without any fee impact or penalties imposed

Bendigo & Adelaide Bank

  • Both home loan and business loan customers will be eligible for relief for up to 3 months
  • Loans will be able to be both restructured and consolidated without any fees being incurred
  • Credit card limits can be increased in the case of emergencies
  • There will be no penalties or rate reductions for early withdrawals from term deposits.
  • SME customers can defer their payments as well as receive extensions on equipment finance.

Commonwealth Bank

  • Customers can refer their loan repayments from April through to June, and then request a further 3 months
  • Business customers can receive a 2.00% interest rate cut on new loans and overdrafts
  • Existing customers will receive a 1.00% cut to the rate
  • Additional working capital will be made available for some business customers
  • Will allow customers to break term deposits without any fee impact or penalties imposed

Macquarie

  • Residential home loan clients will be eligible to defer their home loan repayments for up to 6 months whereby they’ve experienced financial difficulty
    • This also applies for business customers as well as home loans and credit card repayments
  • SME business customers will receive a 1.00% discount to their business loans

NAB

  • Business and equipment finance loans can be eligible for a 6 month deferral on P&I repayments
  • All overdrafts and new loans for businesses will receive up to a 3.00% reduction in the rate
  • Home loan repayments will be able to be paused for up to 6 months

Suncorp

  • Both P&I and Interest-Only home loans can be deferred for a period of 3 – 6 months
  • Residential home loan customers will be able to re-arrange their existing loans from P&I to I/O or vice versa without any establishment fees
  • There will be no break fees for funds withdrawn from their term deposits
  • SME customers will receive assistance with working capital on a case by case basis

Westpac

  • Business overdrafts will be reduced by 2.00% for all new and existing business customers.
  • SME customers that may experience cash flow issues can defer their P&I repayments of business loans for up to 6 months
  • 00% reduction to variable interest rates on small business cash-based loans
  • 3-month deferral on home loan mortgage repayments for those who have experienced a sustained loss in income or lost their job due to Covid-19.
    • This can be reviewed to be extended each 3 months.
  • Will allow customers to break term deposits without any fee impact or penalties imposed

We are sure that many of the lenders will be offering facilities and support for both residential and commercial clients to assist us all through this difficult time. Before opting into any extensions or deferral of loan repayments, be sure to do your homework and fully understand the terms and conditions associated. Often, they can cost you far more than you might expect.

What next?

If you are experiencing any financial difficulty, or want to explore your options just in case your business or personal finances take a turn for the worse, be sure to reach out to our team and we can explore your options with you to identify the best path forward.

 

LoanSuite Pty Ltd is your lending partner for all of your home loan, investment property, business and commercial financing needs. With our wide range of lending solutions, expertise in financial planning and investment strategies, and extensive experience in working with both Australian residents and Australian expats, we are your partners for your lending needs.

Book an obligation-free, complimentary consultation here today.

LoanSuite Pty Ltd is an Authorised Credit Representative (Credit Representative Number – 494608) of My Local Broker (Australian Credit License – 481374). Important Disclaimer: Your complete financial situation will need to be assessed before acceptance of any proposal or product.

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