Over the past week, many banks have introduced new comprehensive support packages to support Australians dealing with the impacts of the coronavirus. These complement the Federal Government and Reserve Bank of Australia’s stimulus packages.
Here is a high-level summary of measures that have been announced by the banks:
- From 23 March, all Macquarie Personal and Business Banking clients who are experiencing financial difficulty can immediately defer their repayments for six months on all commercial loans, overdrafts, home loans, car loans and credit cards
- Introducing a new business loan offering for small to medium-sized business owners. The interest rate will be 1.00% p.a. lower than existing business lending rates, with no payment due for the first six months
- Decreasing variable interest small business loan rates in by 0.25 per cent per annum from March 27, resulting in a 0.50 per cent per annum reduction since last week
- Reduction by 0.80 per cent per annum to a new two and a three-year fixed rate of 2.59 per cent per annum for secured small business loans up to $1 million from April 3
- Variable interest home loan rates will be decreased by 0.15 per cent per annum across all variable rate indices from March 27
- A two-year fixed rate of 2.19 per cent per annum for owner-occupiers paying principal and interest will also be introduced
- Overdrafts will be reduced by 200 basis points for new and existing business customers from April 6
- 100 basis point reduction to variable interest rates on small business cash-based loans from April 6
- 29 per cent per annum fixed rate home loan for one, two and three years for owner-occupied customers on principal and interest repayments with a Premier Advantage Package from March 27
- 100 bps interest rate reduction for all existing cash-linked small business loans
- 70 bps interest rate reduction in one, two and three year fixed home loan rates for owner-occupiers paying principal and interest to 2.29 per cent per annum
- Defer principal and interest for up to six months for those businesses experiencing difficulty
- Receive an additional 100-basis point reduction on variable rates for small business loans, effective March 30. This is on top of a 25-bps reduction earlier this month
- Defer business credit card repayments for business customers
- Homeowners to have home loan repayments paused for up to six months if experiencing financial challenges
- Reductions of up to 60 bps to fixed-rate home loans
- Deferral of principal and interest repayments would be available for affected small businesses for six months from 23 March
- Fast track approval process to ensure customers receive support as soon as possible
If you are affected or want to know more, please let our Lending Advisors know, and they can advise what options may be available for you.
With interest rate cuts and historic low mortgage rates, we are also available to review your current loans to ensure you have the right home loan for you, and your circumstances. Please contact us for a complimentary home loan review.
The landscape is constantly changing and we expect further updates from the banks. We will keep you informed as and when these changes come through.