NSW Stamp Duty

Announced as part of the NSW Budget 2020-21, the state government is to launch a public consultation to seek the community's view on tax reform to reduce the upfront costs for buyers and remove "one of the biggest financial barriers to home ownership".

The proposed model would give buyers a choice to axe stamp duty at the point of purchase and choose an annual property charge instead.

The consultation process outlines a proposed model that would:

  • Give people purchasing a property the choice between paying stamp duty upfront or opting for the smaller annual property tax;
  • Enable people who opt-in to the system to also eliminate any land tax liability;
  • Ensure that the current property owners who are not buying or selling are not affected;
  • Replace the current stamp duty concessions provided to first home buyers with a new grant; and
  • The proposed model includes a property tax rate that would support and incentivise homeownership with a lower rate for owner-occupiers and higher rates for investors and commercial properties.

The reform could be set in motion in the second half of 2021 after seeking community feedback over the coming months.

To read the full article please, click HERE.

Source: The Adviser

ANZ Update

ANZ is currently waiving Lenders Mortgage Insurance premiums for eligible professional customers who have a loan to value ratio of up to 95%, meaning your customers could save thousands on LMI premium costs.

For instance, a medical practitioner could save up to $36,000 on an $800,000 home loan, plus no minimum income requirements apply.

How much your customer could save depends on their circumstances, such as their profession, their loan amount and where their property is located.

Eligible customers include:

  • For LVR of up to 95%:
    • Medical Practitioners
    • Dental Practitioners
    • Specialists
  • For LVR of up to 90%:
    • Chiropractors
    • Veterinarians
    • Optometrists
    • Physiotherapists
    • Lawyers
    • Accountants

For any questions, please reach out to your BDM.

*WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Adelaide Bank Update

Adelaide Bank is making changes to its SmartSuite commercial rates.

Please be advised of the following changes to the SmartSuite commercial rates as follows, effective Friday 13 November 2020.

Full Doc

1 year fixed

2 year fixed

3 year

fixed

4 year

fixed

5 year

fixed

65%

2.92%

2.96%

3.08%

3.08%

3.08%

70%

3.07%

3.11%

3.23%

3.23%

3.23%

75%

3.22%

3.26%

3.38%

3.38%

3.38%

Simple Doc

1 year fixed

2 year fixed

3 year

fixed

4 year

fixed

5 year

fixed

60%

3.77%

3.81%

3.93%

3.93%

3.93%

65%

3.92%

3.96%

4.08%

4.08%

4.08%

Commercial Rate Board

In the meantime, should you have any questions, please contact your BDM.

*WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Suncorp Update

Please see the below update from Suncorp concerning their small business offer.

Below are the offer and the rates. These loans are done under the Resi accreditations and paid at Resi rates. Service calculators are the same as the Resi one and are set up to help you do the one that comes across your desk or are large volume commercial writers.

Features of the offer:

  • Up to 25-year loan term
  • Valuation fees applied
  • 100% offset available up to $1m. Not on fixed loans
  • $15 monthly account keeping fee

Offer terms:

  • Variable Rate Special Offer valid from 01 October 2020 to 31 January 2021 and is subject to change without notice.
  • Rate offered on the date of settlement of the loan will apply.
  • New to bank loans up to $3,000,000 Total Business-Related Exposure only.
  • Minimum application requirements apply including the provision of 2 years' financial statements and tax returns for all applicants and guarantors.
  • Offer may be withdrawn at any time before a contract is entered into. Pre-approvals excluded.

Serviceability calculator

Small Business Application Form

Small Business Checklist

50 Ha Lifestyle Properties - Providing the property is purchased for personal use (not being used for primary production) and servicing is demonstrated from 'off property' income streams, these can be financed with a regulated facility.

Owner Occupied Commercial Properties - Since increasing the limit on their Business Essentials loan product for finance from $1 to $3m, loan terms of up to 25 years with offset availability and flat upfront and ongoing fees can now be provided.

Company Purchasing a Commercial Property - If you have a company that is purchasing a property, a loan in isolation can be done.

Please reach out to your BDM to discuss a scenario.

*WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.