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Banks initial assistance response to COVID-19

In light of a crazy weekend, the majority of the banks have advised effectively immediately, assistance will be put in place to help both home loan and business customers manage their respective loans over the coming 6 month period. Wealthmed is still waiting a full response from a couple of the smaller lenders.

Most lenders will offer ‘deferred’ payments of up to 6 months for those who are in financial difficulty (or about to be). What this means is if a client has lost their job, experiencing a loss of income as a result of COVID-19, they can apply to not make any repayments on their loans for the agreed amount of time (max 6 months) and the interest that they incur during this time will be simply added onto their loans. It is important to know that this assistance isn’t an opportunity for those not put into financial difficulty to simply ‘take a break’ from paying their loans. The banks will have a basic means test/questionnaire for clients to complete before agreeing to the deferred payments.

Below are the key points from the lenders who have advised us of their offerings (there are more offers such as lower fixed rates etc which we can discuss with you directly if needed). Click here to access a ANZ FAQ that best explains this offering is simple to understand terminology.

Finally, no bank will call, email or send a SMS direct to a client requesting personal/log-in/password information. If clients do experience this it will be fraudulent activity and we advise them to delete immediately.

If any clients have concerns regarding their loans specifically let them know we can assistance them to make the request with their respective lender.

ANZ:

Home Loan:

  • Request a deferral of home loan repayments for up to six-months, with a review at three-months, with interest capitalised (Interest Capitalisation is the addition of unpaid interest to the outstanding loan balance. The outstanding loan balance increases when payments are postponed during periods of deferment or forbearance and unpaid interest is capitalised)

Business:

  • All impacted customers can request a six-month payment deferral on loan repayments for term loans, with interest capitalised.
  • Making available temporary increases in overdraft facilities for 12 months

CBA:

Home loan:

Customers requesting financial assistance during this time will be able to defer their repayments, with interest capitalised, for up to six months.

MACQUARIE:

  • Business and personal banking clients who are experiencing financial difficulty can immediately defer their loan repayments for six months. This applies to all business loan, overdraft, home loan, car loan and credit card clients.

NAB:

Home Loan:

  • Pause home loan repayments for up to six months, including a three-month checkpoint.

Business:

  • Defer principal and interest for up to six months on a range of business loans, including floating and variable rates, and equipment finance loans,
  • Receive a 200-basis point rate cut on new loans and all overdrafts on QuickBiz, effective March 30;
  • Receive an additional 100-basis point reduction on variable rates for small business loans, effective March 30.

Westpac/St George

  • Waiting to confirm what options are available for SMSF lending

Home loans:

  • Westpac customers who have lost their job or suffered loss of income as a result of COVID-19 should contact us for three months deferral on their home loan mortgage repayments with extension for a further three months available after review

Business:

  • Unsecured three-year term loan up to $250,000 for eligible new and existing customers with turnover of less than $50M, as part of the Federal Government’s latest economic support measures that guarantees 50 per cent of new loans issued by eligible lenders to small and medium size businesses. Effective Monday 23 March 2020, credit criteria applies.
  • 400 basis point reduction on unsecured lending term loan for new and existing customers, effective Monday 23 March 2020.
  • 200 basis point reduction on overdrafts for new and existing customers, effective Monday 6 April 2020.
  • 100 basis point interest rate reduction for small business cash-based loans, effective Monday 6 April 2020.
  • Repayment relief for small business customers: Westpac small business customers who need help to manage their cash flow can defer principal and interest repayments of business term loans for up to six months. Find out how to apply here.
  • Merchant terminal rental fee waivers for up to three months.
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