New SME Recovery Loan Scheme

As of 7 April, St. George has launched its new SME Recovery Loan of up to $5million. With rates from 2.58% p.a., the SME Recovery Loan will provide continued support to Australian businesses impacted by COVID-19 or the recent floods.

Applications under the SME Recovery Loan Scheme will be open until 31 December 2021. Phase 2 of the SME Guarantee Scheme will remain open until 30 June 2021.

The St. George SME Recovery Loan will be available to eligible customers with a turnover of up to $250 million per ABN, who have either:

  • received JobKeeper payments between 4 January 2021 and 28 March 2021; or
  • been adversely economically affected by the recent floods.

Repayment deferral periods available

Customers can choose to defer their loan repayments for the SME Recovery Loan for a period of 6 and 12 months.

New and existing customers

The offer is open to new and existing customers and can be used to refinance the pre-existing debt of an eligible borrower, subject to several exceptions.

The new SME Recovery Loan is in addition to the support measures your customers may already have in place under Phase 1 and 2 of the SME Guarantee Scheme and provides critical, continued support to small business customers doing it tough due to COVID-19 or the recent floods.

SME Recovery Loan eligibility

To be eligible, your customer will:

  • Have received a JobKeeper payment between 4 January 2021 and 28 March 2021 OR have been adversely economically affected by the recent floods
  • Have an annual turnover of less than $250 million
  • Have a valid ABN
  • Be a tax resident of Australia - that is based, registered and operating in Australia

Loan Details

Product Business Loans
Limit Up to $5,000,000
Loan Term Up to 10 years
Fees

$0 establishment fees and $0 monthly account keeping fees for new loans approved

Rates Variable interest rate from 2.58% p.a. to 4.28% p.a. depending on security offered and whether a repayment deferral period applies
Deferral Period Currently we have options to defer repayments for 6 and 12 months
Security

Directors Guarantees - New limited amount, GSA: New/Existing, SSA: New/Existing,

Other security may be required (as appropriate).

Note: Supporting security must exclude residential property or commercial/rural property that may be used for residential purposes.

Commissions payable

  • Upfront Commission: 0.10% (excl of GST) of the loan amount
  • Trail Commission: 0.25% p.a. (excl of GST)

Loan Purpose and Eligibility

  • Loans must be used for business purposes only (including to support investment), with limited exceptions.
    • Loans cannot be used to purchase residential real property, the purchase of financial products, lending to an associated entity.
    • Loans can be used to purchase non-residential real property (such as commercial property) or for the acquisition of another business.
  • Loans may be used to refinance the pre-existing debt of an eligible borrower, with some exceptions:
    • Loans secured by residential property cannot be refinanced.
    • Loans that are more than 30 days in arrears, as at the application date, cannot be refinanced.
  • Loans can be restructured as long as they continue to meet eligibility criteria (including the maximum loan term) and do not increase the loan limit after approval.
  • Customers who have a controller, liquidator, administrator, restructuring practitioner, or trustee in bankruptcy appointed are ineligible.

Please ensure all the above conditions are met and the application process is followed accurately to avoid delays.

St. George remains committed to supporting Australian businesses recover from the COVID-19 pandemic and the recent floods. If you have any questions or need further support, 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.

This document is to be used as general information only and should not be considered a comprehensive statement on any matter and should not be relied upon as such. This document has been prepared without taking into account any individual objectives, financial situation or needs. No member of the Westpac Group or any of their employees or directors gives any warranty of accuracy or reliability nor accepts any liability in any other way, including by reason of negligence for any errors or omissions contained herein, to the extent permitted by law.

Promotion Extended - Resi Renew

RESI RENEW will continue to discount interest rates and fees across select Prime, Near Prime and Specialist home loan products, until 18 April 2021. This includes:

Discounted fees

  • No Mortgage Risk Fee (MRF) for Near Prime Alt Doc loans up to 70% LVR
  • No Lender Protection Fee (LPF) for Prime Full Doc loans between 80-85% LVR
  • No Title Protection Fee for Near Prime Full Doc and Alt Doc loans

Discounted rates

  • Prime rates starting from 2.35% p.a.
  • Near Prime rates starting from 3.49% p.a.
  • Specialist rates starting from 4.59% p.a

Updated rate cards have been uploaded to our broker sites. Click here to find out more.

*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.

Heartland Seniors Finance Rebrand

As you may already know, Heartland Seniors Finance have rebranded to Heartland Reverse Mortgages to position themselves better as reverse mortgage specialists.

Find out more about the change here

Please arrange to make any content changes to reflect their new branding, should you require to do so.

Some key points for you below:

  • Anytime Heartland Seniors Finance is mentioned, it can now be changed to just Heartland.
  • Fee schedule - CLICK HERE
  • Product guide - CLICK HERE
  • Reverse mortgage calculator link - CLICK HERE

For any questions, please reach out to your BDM.

Residential Credit Policy Update

Please note the following policy amendments for Adelaide Bank, which have been in effect as of 29 March 2021.

COVID-19 Temporary Additional Lending Requirements ' '' ' ' ... " Statutory Declarations

Amendment to requirements for cash out greater than $250K:

Where the proportion of cash out is > $250K, and the purpose of the funds is to purchase an investment property, the use of a statutory declaration has been added as acceptable supporting documentation.

Purchase of investment property:

Contract of sale OR a statutory declaration from applicants confirming that they intend to purchase property can be used (because the loan services without the need of rental income)

Minor Policy Changes

Valuation Requirements

In instances where the security property is not subject to a full valuation, lenders must confirm with either the property owner or applicant (whichever is applicable) that all improvements are in good condition. Where the improvements are in poor condition, a full valuation is required.

Desktop, AVM, Contract of Sale and Valuer General Assessment policies will be updated to include this requirement.

Potentially combustible cladding

Following a review, the verification requirements and property definitions will be updated.

Verification requirements to confirm whether or not the building has potentially combustible cladding will be amended as follows:

  • Written confirmation that the building has no potentially combustible cladding can be obtained via the purchase contract, Body Corporate/Owners Corporation (or similar) minutes, or the Local Council.
  • Where confirmation cannot be provided, a certification that the building meets the required state or territory legislative performance standards, including confirmation of any attached dwellings are separated by a fire-resisting wall or is exempt, is to be sought via:
    • A report prepared by an accredited fire safety engineer; or
    • A building surveyors report prepared by a registered building surveyor; or
    • A certificate by the relevant government authority or fire authority in that state or territory.

The policy will be updated to adopt the National Building Code property definition to clarify which property types must be assessed for potentially combustible cladding.

These include:

  • "Class 2" apartments. "Class 2" is defined under the National Building Code as a "Domestic apartment building - a building containing two or more sole-occupancy unites where people live above, beside or below each other".
  • "Class 1a" personal residence. "Class 1a" under the National Building Code as "a single dwelling being a detached house, or one of a group of two or more horizontally attached dwellings, each being a building, including a row house, terrace house, townhouse or villa unit".

Should you have any questions, please contact your BDM.

Liberty Business Loans Update

Below is a new customer story from Liberty and how they were able to help with their range of lending options:

Customer Story:

An online merchant selling pre-prepared meals and hand sanitiser was looking to expand their business portfolio and needed $602,000 to purchase a news agency valued at $748,000.

Liberty Solution:

The customer demonstrated that their previous businesses ran at a profit, and servicing reflected strong financials. The guarantors were asset-backed with $242k in equity. With a Liberty Business Care solution, the customer was able to borrow $602,000 over five years, secured by personal guarantees and a company charge.

Visit Liberty IQ to download their Introducer Guide for more information.

Reach out to your BDM for more information.

Teachers Mutual Bank Update

Approval in Principle home loan applications - Temporarily suspended

Effective Wednesday 31 March 2021, the Bank is no longer accepting stand-alone Approval in Principle home loan applications.

Why has this decision been made?

This temporary decision has been made to assist with prioritising the workflow management of home loan application volume with the overall intention and focus on improving their service level position to you and your clients.

Does this include all Pre-Approval applications?

Stand-alone applications will no longer be accepted however, applications involving the following will still be accepted;

  • A security Guarantor.
  • The purpose is a refinance with a "cash-out" component, where that "cash-out" component forms part of the deposit on a second property for which a pre-approval application has been submitted.

How does this affect you?

  • Stand-alone Pre-Approval applications received before the effective date above will still be accepted. However, please note applications are not verified and assessed until a contract of sale has been entered. Decisions provided are system generated based on the Applyonline application information you have submitted.
  • The bank will issue a notification when the temporary suspension has been lifted.

Please reach out to your BDM, should you have any questions.