I’m publishing this special coronavirus newsletter because I know you’ve got questions.
In this COVID special, I’ll explain:
• The support available from banks.
• The government’s $17.6BN stimulus package
• Why loan processing times have remained steady
At times like these, it’s vital to get expert advice, so call me if you’ve got any questions about property and finance.
BANKS RESPOND TO COVID CHAOS
Australia’s biggest banks have promised to stand by customers affected by the coronavirus crisis.
• Keeping branches open
• Helping customers who need to switch to digital banking
• Committing to “process home loan applications quickly and efficiently”
• Devoting “additional resourcing and extended hours” to process small business loans
One of the strongest areas of support is for eligible business loan customers. The measures available from many lenders include;
• Fee-free redraws
• Deferral of business loan repayments by up to three months
• Extension of business loan terms by up to three months
• Restructure and consolidation of existing loans
• Early access to term deposits
• Deferral of business credit card repayments
• Access to business financial counselling
Some lenders have gone so far to say they would provide “any necessary financial support” for business customers experiencing hardship due to COVID-19. “This includes suspending repayments, providing early access to term deposits without incurring break fees as well as providing access to additional credit.”
4 KEY AREAS OF THE GOVERNMENT’S $17.6BN STIMULUS PACKAGE
The federal government has unveiled a $17.6 billion package “to protect the economy by maintaining confidence, supporting investment and keeping people in jobs”.
The package targets four key areas:
1. Support for business investment
• The instant asset write-off threshold has been increased from $30,000 to $150,000
• Businesses with a turnover of under $500 million will be able to deduct 50% per cent of the cost of an eligible asset on installation
2. Cash flow assistance for employers
·• Businesses that employ staff and have a turnover of under $50 million will be eligible for tax credits of between $2,000 and $25,000
• Eligible employers can get a wage subsidy of 50% for apprentices and trainees for up to nine months
3. Payments to households to support growth
• Social security, veteran, other income-support recipients and eligible concession card holders will get a tax-free $750 payment
4. Assistance for severely affected regions
• The government has allocated $1 billion “to support regions most significantly affected by the coronavirus outbreak”
HOME LOAN PROCESSING TIMES REMAIN STEADY
Despite the fact that stocks of toilet paper and canned goods are running low, Australia’s property and finance engine continues to run smoothly.
Lenders have responded by devoting extra resources to loan processing and by testing work-from-home arrangements. Contingency plans are being made in case even more staff need to work from home.
Banks and credit unions know that many Australians are still making important life decisions around property, and have responded accordingly.
Other stakeholders – including valuers, mortgage insurers and settlement agents – are also rising to the challenge.
At this stage, there are no disruptions to normal processing times for new and existing loan applications.
At times like these, it’s vital to get expert advice, so call (0439350856) or email <lance@RedDoorFinance.com>me if you’ve got any questions about property and finance.