Courtney C. Lipsey Here’s an overview of services and information that can help you ease your financial burden if you are affected by Coronavirus or want to know more.
Abstract In order to help people get through these times of uncertainty, Australian banks have developed more clearly defined financial assistance packages.
Each of the four big banks has committed to a number of measures, with generous help offered to their customers. They have all announced COVID-19 packages that provide significant support for both small businesses and consumers.
Smaller lenders also offer relief to consumers and business customers.
ANZ
The bank will:
- Reduced variable interest rates on home loans by 0.15%, effective March 27, 2020
- Introduce a fixed rate of 2.19 percent per annum for two years. Owner-occupiers who pay principal and interest will get the lowest-ever fixed-rate mortgage.
- Allow customers to ask for a deferral of repayment for up to 6 months. Review at three months. Interest capitalized*
ANZ offers a range of services to small business customers.
- A 0.25% per annum. A 0.50% decrease in the variable interest rates for small business loans, effective as of March 27.
- Allow impacted customers to ask for a six-month deferral of loan repayments on term loans with capitalized interest*
- Increases in Overdraft Facilities for 12 Months
- A 0.80% per annum. A reduction to a new fixed rate of 2,59% for two- and three-year secured loans up to $1,000,000, starting on April 3, 2020
Capitalized interest means that the claim is added to the loan amount and not future repayment
Contact us: Business customers should contact their relationship manager.
Commonwealth Bank
The bank will:
- You can defer your home loan payments for up to 6 months
- Your loan balance will increase with interest and fees
- At the end of your support period, the loan balance is recalculated.
- The loan term is extended, but the repayments remain the same as before the deferral.
Customers of Common Bank will be able to:
- Fee waivers and deferred repayments are available for a variety of products, including business loans and overdrafts.
- Fees for merchant terminals are waived for 90 days.
- Refusing repayments of vehicle and equipment financing loans and customizing restructuring options
- Fees for early withdrawals on Farm Management Deposit Accounts (and Business Term Deposit Accounts)
- Exemption from establishment fees and excess interests on temporary surplus products
- Offers unsecured loans up to $250,000 without account or establishment fees and with no repayments during the first six months of operation for businesses with less than $50m in turnover.
Contact us: For other account holders, call the Financial Assistance Team at 13 30 95 or the Business Financial Assistance Team at 13 26 07
NAB
The bank will:
- You can pause your home loan payments for up to 6 months.
- Access a 10-month rate of 1.75% per annum. For ten months, starting on March 24, 2020
- Get fixed rates on home loans of 2.39% per annum. For 1-year, the rate is 2.29% per annum. For 2- and 3-year, the rate is 2.29% p.a. For 5-year (owner-occupier P&I), starting 25th March 2020
- First-time homebuyers will be able to access a fixed rate of 2.19% per annum for two years.
- Offset accounts allow you to make repayments and redraw amounts through offset accounts.
NAB offers the following services to business customers:
- You can defer P&I up to six months for a variety of business and equipment financing loans
- Get a 200bps reduction on all new loans, including overdrafts. This is effective on March 30.
- Get a 100bps further reduction in variable rates on small business loans starting March 30
- Customers who have been pre-assessed can access up to $65bn in additional secured limits, and $7bn is currently available through a quick assessment process.
- Defer credit card payments for business.
Contact us: Business customers who are experiencing financial hardship can call 1300 769 651, while personal clients should dial 1300 683 1006.
Westpac
- All business customers with less than $50 million in turnover can access a three-year unsecured term loan of up to $250,000.
- Customers with cash flow problems can delay the repayment of P&I on business-term loans by six months.
- Redrawing loans without fees
- Effective April 6, the overdraft rate for small businesses will be reduced by 200bps.
- Effective April 6, the variable interest rate on cash-based small business loans will be reduced by 100bps.
- A 2.29% per annum Fixed-rate home loans for 1, 2, and 3 years for owner-occupied clients on P&I payments with a Premier Advantage Package, effective from March 27
- Special 12-month term deposits of 1.7% per annum Customers will receive a higher rate of return on their investments, an increase of 70bps (up to $500,000 per customer); Australians 65 and older will get a rate of 2% p.a. For eight months, up to $500,000 per client.
Get In Touch: Verify your eligibility for business or personal assistance by calling 1800 067 49 7.
ING
- Small business customers can defer repayments for up to six months on commercial loans.
- Customers who have home loans, credit cards, or personal loans can pause their repayments for three to six months.
- Rates for commercial variable loans under $3m will be reduced by 0.35%, effective April 9, 2020.
- For a two-year loan to an owner-occupied property, the fixed rate is a record low of only 2.09% per year. This rate will be effective on March 26, 2020.
- Savers can enjoy higher rates on term deposits.
Contact us: Call ING’s specialist support team at 133 464.
AMP
- Clients experiencing financial stress can pause their home loan payments for up to three months. They have the option of extending this period for another three months.
- There are a range of fixed rates available for owner-occupied clients and existing investment clients. These include a rate as low as 2.39% per annum. Fixed-rate for 2-year owner-occupied P&I package
- Fee waivers are available for clients with financial hardship who are borrowers of home loans.
- From March 30, 2020, to October 1, 2020, the monthly account fee will be waived for holders of everyday and savings accounts.
- Access to 1.80% per annum. Term deposit rates are available for all terms between 6 and 18 months.
Contact us: Call AMP at 13 30 30 from 8 am to 8 pm Monday to Friday or 9 am to 5 pm Saturday and Sunday AEST, or speak to your financial advisor to learn how AMP can assist you.
Suncorp
- Rearrange loan repayments without establishment fees. (For example, moving from principal and interest to only interest repayments when income is uncertain).
- Early withdrawal of term deposits is free.
- Businesses can now choose from a variety of loan products. They will also benefit from a reduction in the interest rates on small business overdrafts, lines of credit, and variable loan rates.
- Home loan interest rates are lower, and the rates on term deposits increased.
Contact Suncorp: Call them on 13 11 55, or speak to your relationship manager about the available assistance.
Bendigo & Adelaide Bank
- Up to three-month relief on the repayment of home loans and business loans.
- Bendigo Bank offers a discount on interest rates for new loans and waives fees when consolidating or restructuring loans.
- Credit card holders can request an increase in their emergency credit limit.
- Early withdrawal from a term deposited without reducing the interest rate is possible.
- Deferring or extending the repayment of equipment financing is considered on a case-by-case basis.
Contact us: Affected clients should contact their local Branch Manager or Business Banker (or the Mortgage Help Centre at 1300 650 259).
Bank Australia
- Offer deferrals to scheduled loan repayments. *
- Offer interest-free periods or fee waivers. *
- Consolidate your debt to make payments more manageable. *
*All offers will be made on a case-by-case basis
Contact: If you are struggling with your finances, call 132 888 and Bank of Australia to sort them out.
Macquarie Bank
- Reduce the interest rates on credit cards and offer special services to those who are in financial crisis.
- Restructuring and reassessment of business loans are available.
- The offer will protect borrowers’ scores from the COVID-19 Crisis, meaning that missed payments or loan holidays won’t affect their credit scores in the future.
Contact us: Macquarie provides helpful contact numbers for its different financial products.
- Home Loans on 1300 363 300
- Credit Cards on 1800 674 922
- Lease on 1300 368 908
- Contact your Relationship Manager or call 1800 620 673 to learn more about business banking.
What if the bank I work for is not on this list of banks?
Some institutions may not offer a COVID-19-specific financial assistance package. Still, most have policies that provide support to customers who are experiencing financial difficulties due to illness, injury, or other situations that affect their ability to work. First, visit the ABA financial difficulties page. It contains information, contacts, and links to 22 member banks of the association. If you can’t find what you’re looking for on the ABA’s financial difficulty page, contact the bank customer service phone numbers to search for any recent announcements regarding their approach towards Coronavirus.
Do I have to prove my claim?
CBA states that no proof is needed to request deferral. However, you may be asked if you are Coronavirus-affected.
Westpac examines each request individually rather than imposing blanket conditions.
ANZ seems to believe that if your repayments are up-to-date, you’ll most likely qualify.
NAB Customers who wish to defer payment will not be required to show any proof. If requested, a pause will apply.
Coronavirus support:
Early release from superannuation
As of mid-April, eligible individuals can apply online via myGov for up to $10,000 in their superannuation prior to July 1, 2020. From July 1, 2020, to September 24, 2020, they will be able to access an additional $10,000.
The money that individuals withdraw won’t affect Centrelink payments or Veterans Affairs.
If you meet one of the following criteria, then you are entitled to your superannuation.
- You are unemployed.
- You may be eligible for a number of benefits, including a parenting payment (which includes both the single and partnered charges), a special gift, or, if you are residing in rented accommodation, an Agricultural Household Allowance.
- After January 1, 2020, or onwards, either
- you were made redundant
- Your working hours have been reduced by at least 20%
- If you are a sole trader, your business has been suspended, or your turnover has decreased by 20% or more.
