Thankfully the banks and government appear to have stepped up to the plate – one economist calculates that the total economic stimulus offered by the government is the equivalent of an 11 per cent boost to the economy.
And the banks have announced a small business assistance package which will apply to more than $100bn of existing small business loans and depending on customer take up, could put as much as $8 billion back into the pockets of small businesses.
Many Origin brokers are currently arranging finance for their small business clients which is aimed to tide them over until the virus is under control.
Below is a summary of what’s on offer:
- Financial hardship assistance from your lender:
All lenders are providing assistance, including the ability to defer loan repayments for up to three to six months, depending on your circumstances.
It is better to act early and preserve your cashflow if you have been affected.
The Origin offices remain staffed and your Origin broker is here to help you but, if you need to speak to your lender urgently, below are the home loan financial hardship contact lines and links to their relevant websites for a range of lenders.
ANZ 1800 252 845 or this link
AMP 13 30 30 or this link
CBA 13 30 95 or this link
NAB 1800 701 599 or this link
Westpac 1800 067 497 or this link
St George 1300 303 110 or this link
Bankwest 1300 787 144 or this link
AMP 13 30 30 or this link
Suncorp 1800 225 223 or this link
ING 1300 349 166 or this link
Macquarie 1300 363 330 or this link
CUA 133 282 or this link
ME Bank 13 15 63 or this link
Heritage Bank 13 14 22
Liberty Financial 13 11 33 or this link
- Government assistance:
The Federal Government has announced a significant assistance package for households and business which includes:
- Almost half the country’s workforce receiving $1,500 a fortnight for the next six months under a record $130 billion wage subsidy
- $20k to $100k cashflow boost for small business as well as the ability to access up to $10k of Super
Here is a link to the details of the government support for individuals and households.
I suggest that if you have been affected, read up on what you may be eligible for, and to take advantage of these to help you through.
- Interest rates:
The RBA cut interest rates again last week and, more importantly, provided the financial system with significant additional liquidity including low cost 3-year fixed rate debt.
This has meant that there are now numerous lenders offering two and three year fixed rates between 2.19 per cent and 2.39 per cent
Given that these fixed rates are well below current variable rates, and it appears the RBA is not going to cut the cash rate any further (it then effectively goes negative which they said they want to avoid), this means that if it suits your personal circumstances it may be worth chatting to your Origin broker about fixing some of your loan at these low fixed rates.