26 Mar Rate Changes & Relief Measures For Home and Business Owners
During this challenging and rapidly changing time in our financial landscape we are committed to keeping you updated with the latest news, policies and rate changes that may affect you as a home or business owner.
The information below outlines the most recent changes to interest rates and shares new measures that have been put in place to provide reprieve to those with a mortgage or a business.
If you are unclear about how this information affects you or where you stand in any financial aspect of this current climate, please reply to this email and we will do our best to provide you with personalised support.
MORTGAGES
The major banks have all announced interest rate changes and support measures for mortgage customers in response to the RBA rate cut last week and intervention measures to support the economy.
If you are a mortgage customer in hardship, you will have the ability to suspend your loan repayments for up to six months.
Note: Interest rate cuts are primarily centred around fixed interest rates.
While current rates are attractive it is essential to ensure these are appropriate for your circumstances before making any major financial decisions.
BUSINESS LENDING
The major banks have all announced rate changes and support measures that include a suspension of loan repayments for up to six months.
They will also offer interest rate drops on a number of lending products.
MORTGAGES
Banks have taken major action in cutting their fixed interest rate products.
The major lenders have all decreased their rates in response to the Coronavirus crisis with fixed rates starting from 2.19% per annum for owner occupiers and 2.69% per annum for investors.
At this stage, other lenders have not passed on the full amount of the 0.25% RBA cut.
BUSINESS BANKING & SME SUPPORT
If you are a business owner, you may be eligible for support via a relief package that will apply to more than $100 billion of existing small business loans.
The RBA is launching a $90-billion term funding facility (“TFF”) for banks supporting lending to SME’s. The TFF will offer three-year funding to banks at a fixed rate of 0.25% which will be a relief to banks facing rising funding costs.
The major banks will also apply varying interest rate deductions applied to both commercial property loans and working capital facilities.
Be on the lookout for some fee relief that is planned across a number of business and merchant products too.
The Federal Government will invest up to $15 billion to enable smaller lenders (non-ADI’s) to continue lending to consumers and businesses.
Corporate borrowers may however see their overall interest costs rise, especially as they roll bill facilities that are impacted by higher wholesale funding costs across the world.
Hopefully this will subside as risks become better understood.
MOVING FORWARD
In a time where circumstances are changing by the day and hardships are hitting many, it can be a scary and stressful time to navigate your next move.
We urge you to slow down and take the time to make decisions that will impact your long term financial future from the most clear and calm place possible, seeking professional help when required to ensure you are fully informed on your options and choices.
If you have any concerns about how any of the above relates to your personal circumstances simply reply to this email to arrange your free initial consultation.
We are here to help you navigate this trick time and provide peace of mind where possible. For more updates, follow us on Instagram and Facebook.
Comparison Rate Disclaimer:
Interest Rates are correct as at 25/03/2020 and subject to change at any time. The comparison rate is based on a loan amount of $250,000 over an 30 year term. WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply. Your full financial situation would need to be reviewed prior to acceptance of any offer or product.
Disclaimer: The Information is general in nature and does not take into account your particular investment objectives or financial situation. It does not constitute, and should not be relied on as, financial or investment advice or recommendations (expressed or implied) and is not an invitation to take up securities or other financial products or services. No decision should be made on the basis of the Information without first seeking expert financial advice. Epoch Financial does not represent or guarantee that the Information is accurate or free from errors or omissions and Epoch Financial disclaims any duty of care in relation to the Information and liability for any reliance on investment decisions made using the Information. Information is subject to change. The scenarios including interest rates are for illustrative purposes only. Your full financial needs and requirements would need to be assessed prior to any offer or acceptance of a loan product. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.