RS COVID-19 Update: Changes introduced by the banks

In response to the current COVID-19 situation the finance industry and governments have announced a vast array of significant programs to assist businesses and consumers to manage their finances during this difficult period. This information differs across various lenders and governments, and we have completed a summary of some of the options already announced and how you can access them below. If you have any questions, please contact us.

ANZ


Home Loan Customers

  • Decrease variable interest home loan rates in Australia by 0.15% p.a. across all variable rate indices, effective from 27 March 2020.
  • Introduction of a two-year fixed rate of 2.19% p.a.4 for owner-occupiers paying principal and interest; their lowest fixed-rate home loan on-record.
  • Request a deferral of home loan repayments for up to six months, with a review at three months with interest capitalised to the loan.

For Small & Medium Businesses

  • Decrease variable interest small business loan rates in Australia by 0.25% p.a., effective from 27 March 2020, resulting in a 0.50% p.a.1 reduction since last week.
  • All impacted customers can request a six-month payment deferral on loan repayments for term loans, with interest capitalised.
  • Temporary increases in overdraft facilities for 12 months.
  • A reduction by 0.80% p.a. to a new two and three-year fixed rate of 2.59% p.a. for secured small business loans up to $1 million, effective 3 April 2020.

Equipment Finance

If you require assistance on ANZ equipment finance repayments, please contact our office at this stage, as ANZ are still putting together a response in this area.

ANZ have established a centralised process for implementing for assistance requests. If you defer loan repayments the bank will contact you during the deferral period to work with you on how to restructure your loan for the longer term.

To access the above packages please follow the instructions here.

CBA


Home Loan Customers

  • Significant decrease in fixed rate loans across various loan terms
  • Reducing all home loan repayments on principle and interest to the minimum
  • Request a deferral of loan repayments for up to six months if required. No repayments required during the deferral with interest and charges capitalised to the loan balance. Loan term recalculated at the end of the deferral period and extended to ensure your loan repayments remain in line with what they were prior to the commencement of the deferral.

For Small & Medium Businesses

  • Businesses with up to $3 million in debt with CBA will automatically receive a deferral of three months on loan repayments. From July customers will be able to opt in for an additional deferral period of an additional 3 months as required.
  • Unsecured loans of up to $250,000 (standard lending criteria apply) with no set up costs to assist in conjunction with the federal government.

Equipment Finance

  • If you require assistance on CBA equipment finance repayments, please contact our office at this stage as CBA are still putting together a response in this area.
  • CBA have developed a comprehensive website with all of the information relating to Covid 19 and their packages.

You can also request deferments via their website here.

NAB


Home Loan Customers

  • Eligible customers can pause their home loan repayments for up to six months (including a three-month checkpoint).
  • Eligibility applies to all NAB home loan customers affected by Coronavirius (owner-occupiers and investors on either principal and interest or interest only repayment schedules).
  • Note, redraw will be revoked for customers during this repayment pause. Consider whether taking redraw may be more suitable for you. Contact us prior to exercising options with NAB on your home loans
  • After a repayment pause, customers are required to bring their account up-to-date over an agreed period of time. This will result in monthly payments being adjusted (i.e. the amount required may be higher than current repayments and may incur a higher amount of interest over the life of the loan).

To access this support for your home loan go here.

For Small & Medium Businesses

  • Defer principal and interest for up to six months on a range of business loans, including floating and variable rates.
  • Receive an additional 100-basis point reduction on variable rates for small business loans, from Monday 30 March 2020. This is on top of a 25-bps reduction earlier in March.

Additional QuickBiz loans and overdraft support

  • Pause business credit card payments
  • Access to unsecured business loans under the SME guarantee program announced with the federal government to assist working capital assistance

To access NAB assistance with loan deferral follow instructions here.

Equipment Finance

If you require assistance on NAB equipment finance repayments, please contact our office at this stage as NAB are still putting together a response in this area.

Westpac


Home Loan Customers

  • Significant decrease in fixed rate loans across various loan terms
  • Westpac customers who have lost their job or suffered loss of income as a result of COVID-19 can contact the bank for three months deferral on their home loan mortgage repayments, with extension for a further three months available after review.

If you wish to access home loan repayment assistance go here.

If you are experiencing significant hardship please complete the following document.

For Small & Medium Businesses

  • Westpac have made a 200 basis point reduction on overdrafts for new and existing customers.
  • Westpac have made a 100 basis point interest rate reduction for small business cash-based loans.
  • Small business customers with business balances less than $3m experiencing cash flow issues as a result of COVID-19 can defer principal and interest repayments of business term loans and equipment finance for six months.

To access the deferment for Westpac customers go here.

Equipment Finance

  • WBC are offering six months deferment on equipment finance loan repayments for small business customers.
  • Please contact their office to arrange this.

The other major banks and lenders within the market are also now starting to provide updated information on their proposed relief / assistance packages, so if your home or business loans are with a lender not listed here please call us and we will work with you to find out what is available for you in your circumstances.

During this difficult time Robertson Scannell is here to support you. We are able complete our full range of services remotely from our home office and are available via phone, email and Video / virtual meetings.

Please do not hesitate to contact us if we can be of any assistance during this time.

Contact us to Make a free, no obligation appointment or telephone (07) 4638 1155


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