Latest News from 86 400

Please see the latest updates from 86 400 amidst the COVID-19 pandemic:

  • All new variable rate applications received by 30 June 2020, will receive an extra 10bp reduction on their rate for the life of the loan.
    • Owner-occupied P&I 2.74%, Owner occupied IO 3.34%,
    • Investment P&I 3.09%, Investment IO 3.44%.
  • COVID19 JobKeeper update - Serviceability will be based on applicants verified, regular income prior to the pandemic, where they are expected to return to regular employment conditions in due course. Specifically, applicants who continue to receive PAYG income from the same employer through this period will be assessed based on their previous regular and ongoing income provided they can confirm that this income is expected to return to the same level in due course.
  • Where borrowers wish to refinance to 86 400 and an agreed COVID-19 related repayment deferral period is in place, 86 400 will honour the full deferral period provided by their current lender.
  • Lowered their fixed rates to as low as 2.24%*, effective 7 May 2020;
  • Reduced the serviceability floor rate from 5.50% to 5.25%;
  • Offering a $250 Annual Package fee waiver for the first year after settlement; AND
  • Introduced a $2,000 cashback offer! (Own home loan applications for purchases and refinances received from 4 May 2020 to 30 June 2020 (inclusive), may be eligible for the $2,000 cashback offer.)

To be eligible all applications must:

  • Be received between 4 May 2020 and 30 June 2020, with the loan settled by 31 August 2020;
  • Be for a minimum loan amount of $250,000; and
  • Satisfy the terms and conditions set out below.

Terms and conditions: Limited to 1 x cashback payment per primary borrower, regardless of the number of loans. Offer may be varied or withdrawn at any time. The cashback will be paid into an 86 400 Pay account within 14 days of settlement. Credit criteria, fees and charges apply. Based on 86 400's credit criteria, residential lending is not available for non-Australian resident borrowers.

86 400 Rates

*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.

Important Message from ME

This is surrounding the articles which have been reported recently regarding ME's actions in relation to redraw amounts for some legacy home loan customers.

These redraw amounts could lead to customers falling behind their original repayment schedules and consequently, ME adjusted the redraw facility to ensure customers couldn't inadvertently withdraw funds above the repayment schedule.

Please note that this only affects some legacy home loans - and none that have originated over the past 5 years

Inaccurate media reporting

No money has been removed from customer accounts, as was erroneously reported in a media article. The adjustment made is to the amount available for redraw.

Risk of potential hardship

Assessments showed that there was a group of customers who were at risk of going above their scheduled home loan balance if they were to activate the full redraw facility. Their redraw facility has been adjusted to be in line with their original repayment schedule.

It is important to ensure that customers are not inadvertently at risk of not meeting their repayment commitments. This would potentially leave them open to:

  • paying additional interest on their home loan
  • being at risk of not meeting their scheduled repayments
  • hardship at the end of the loan term (i.e. requiring the payment of a lump sum at the end of the loan).

Actions being taken for affected customers

Personal circumstances of each customer affected are being reviewed. ME is in the process of contacting affected customers to see if any support is required and offering options including;

  • Discussing options for topping up or refinancing your loan, at the bank's cost
  • Offering a repayment holiday for up to six months
  • Extending the term of the loan to reduce the size of their regular repayments

Platform Finance's Update

In mid-March, the Morrison Government announced their $17.6 billion stimulus plan to bring some relief to SME's during this difficult time. Please see details as follows and Platform Finance's asset finance opportunities:

Government Stimulus Plan

What's included to support business investment?

  • The Instant Asset Write-Off threshold has been increased to $150,000 from $30,000 until 30 June 2020.
  • The Write-Off benefit will now be extended to businesses with a turnover of up to $500 million, up from $50 million before.

Accelerated depreciation deductions are available for businesses with a turnover of less than $500 million. The business will be able to deduct an additional 50 per cent of the asset cost in the year of purchase, up until 30 June 2021.

Asset Finance Solutions

In line with the stimulus package, Platform Finance can provide suitable finance solutions.

When a business vehicle or any income-producing asset is purchased between now and 30 June, 100% of the cost can be written off immediately, essentially providing an instant 30% saving on their acquisition.

Some examples of eligible business assets include:

  • Vehicles used for work purposes
  • Trucks and trailers
  • Farming equipment
  • Earthmoving machinery
  • Medical equipment
  • Office furniture or computers
  • Shop fit-out fixtures or fittings

Business Stimulus Fact Sheet

Australia Broking Awards 2020!

Please note that the submissions deadline for the Australian Broking Awards 2020 has been extended.

New submission close date: Thursday, 11 June, 5.30 pm

How to submit:

A broad selection of categories is available for you to enter, provided that the eligibility criteria are met.

It's simple -- and FREE -- to enter the awards.

To submit an entry for yourself, visit the online entry portal and create an account.

Given the coronavirus pandemic and the associated social distancing requirements, this year the achievements will be recognised through a live broadcast.

New live broadcast date: Friday, 17 July, 7 pm

Pop the date for the Australian Broking Awards 2020 in your diary and you can even register now, for free!

Building a Property Portfolio?

Schools are an important driver in property values that should be considered by investors when buying building a property portfolio. This is because DEPPRO has undertaken thousands of tax depreciation reports for investor clients over the years who have bought into suburbs because their new investment properties were located close to schools.

These individual investors who have used the services have not just bought one property close to schools but, several over an extended time frame as it has proven to be a wise investment strategy. The significance that schools can play in the property market is underlined by the latest ABS figures on Australian schools which show that the number of enrolled students topped nearly 4 million during 2019.

Overall, there were 3,948,811 students enrolled in schools across Australia, an increase of 54,977 (1.4%) since 2018.

The connection between good schools and rising property values has been a proven fact over many years. For example, research by the University of Melbourne has revealed a top public school can add 3.7% to the value of a property in their local catchment area. And research by Property Club also shows that tenants with children are keen to live in catchment areas with good public schools. Their research shows that homes in these areas can command an additional 10% weekly rent compared to surrounding suburbs outside the catchment area.

For investors, buying close to a school can, therefore, have a positive impact both on rental returns and future capital growth. For renters with families, schools are a key factor as they want to have easy access to their important community asset. At the same time, schools which have a high educational reputation underpin local property values as families want to give their client access to the best education possible.

Schools are just one piece in the infrastructure jigsaw that investors should consider when buying an investment property.

Other key infrastructures factors that may have a positive impact on future rental and capital growth rates include new shopping and medical facilities, as well as public transport investment like light rail.

Focusing on fundamental drivers of property values such as new infrastructure is even more critical in the Australia property market today with property prices and rents now under downward pressure in many capital cities due to the impact of the Coronavirus.

As market conditions become more challenging, properties that are in most demand due to their location close to infrastructure will outperform the overall market both in terms of rental and capital growth.