Commbank's Home Loan: Compassionate Care

Being available during the time of need an essential part of what Commonwealth Bank stands for as an organisation.

This is especially true when people are experiencing the devastating loss of a partner or the trauma arising from a serious illness. Unfortunately, for too many people, these difficult moments can also have a financial impact.

To help, Commbank has launched Home Loan Compassionate Care.

The first of its kind in Australia, Home Loan Compassionate Care is complimentary protection for owner-occupied residents where the bank will pay their home loan repayments for around 12 months if they, their spouse or their dependent passes away or is diagnosed with a terminal illness.

This offering is available to eligible new and existing customers for no extra cost and with no need to sign up to activate it. The bank has also worked with its employees who have gone through similar experiences to make the claims process as stress-free and simple as possible.

Additional resources

  • Copy of the communications sent to all brokers - here
  • Short Home Loan Compassionate Care video - here
  • Our Website - here

Heartland Seniors Finance - Interest Rate Decrease

Heartland Seniors Finance is pleased to announce that effective Friday 13th March 2020, their Standard Reverse Mortgage Variable Rate will decrease by 15 basis points to 6.05% p.a. (comparison 6.07% p.a.*).

This rate will be applicable for all new customers and existing customers with a Standard Reverse Mortgage or Aged Care Option. Any customers with a rate change application will be notified in writing of the change.

Heartland's Fee Schedule will be available on the Broker Portal as of Friday 13th March 2020. Please ensure you are providing it to your new applicants from this date.

As always, please do not hesitate to contact the Heartland Broker Support Team on 1300 662 865 or brokers@seniorsfinance.com.au for any questions or assistance.

Reverse Mortgage Fee Schedule

*PLEASE NOTE : 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.

Coronavirus Update

Macquarie are continuing to monitor the developing Coronavirus (COVID-19) situation and with the health of their staff, partners and clients as their top priority, policies are being set up based on expert advice and best practice in the industry. Below are responses to some questions we've received, and please let us know if you have any further queries or concerns you would like addressed to the bank.

Will Macquarie staff be traveling to and attending events?

Like many others, we have made the decision to cease all non-essential interstate travel and scale back our attendance at externally hosted events at this time.

Will Macquarie be hosting events?

We have made the decision to cancel any significant upcoming events for the time being.

Will BDMs still be attending and hosting meetings with brokers?

We have asked our BDMs to attend all meetings via telephone or video conference until further notice.

Will there be a change to Macquarie's requirements for customer interviews?

As per our current practices, we understand that face to face interviews are not always possible and would discourage brokers meeting with customers if either party has recently returned from a country with travel restrictions, is self-quarantining or has been in contact with an infected person. However, it remains a requirement for the broker to conduct the interview with the customer so if face to face is not possible, an alternative means of conducting the interview needs be adopted.

Will there be a change to Macquarie's requirements for ID verification?

Where face to face interviews are not possible due to potential illness and the broker is unable to complete the identification checks, the customer will be required to complete their ID verification via our alternate options which include Australia Post or ZIP ID. In the event the customer is unwell or self-quarantining, they should wait until their illness has passed or quarantine period is over before completing the ID verification process.

ZIP ID has confirmed that they will be requesting customers who have recently returned from a country with travel restrictions, are self-quarantining or have been in contact with an infected person to schedule their appointment for at least 14 days after potential contact.

Will there be a change to Macquarie's requirements for valuations requiring physical inspections?

Where a physical valuation of a client's property is required, the customer should expect that the valuer may ask additional questions when booking the inspection appointment in order to ascertain that no one in the property is in quarantine.

Will there be a change to physical settlements?

Physical settlements will continue to take place as normal and we are not anticipating any disruption to this service.

We will continue to monitor the situation closely and keep you updated on any changes to our policies and practices.

In the meantime, if you have any questions or concerns please contact Joanne Pickhaver on 0405 488 581 or Melanie Houston on 0409 273 501.

Boosting Your Cashflow

The general consensus amongst leading economic commentators is that the Coronavirus will lead to a major economic slump both in Australia and internationally over the remainder of 2020.

For example, Westpac's chief economist Bill Evans dubbed the rate whisperer for his consistently accurate forecasts on the RBA's cash rate calls, has predicted a 2020 recession in Australia because of the impact of the Coronavirus.

On a quarterly basis, he expects the economy will contract in both the first and second quarters by 0.3% respectively. This would mark the first recession in Australia since the early 1990s.

To help offset a possible recession, the Federal Government has just announced a $17.6 billion economic stimulus package that includes tax relief for businesses, one-off cash payments for welfare recipients and money to help keep apprentices in work.

Significantly, medium and big businesses will be encouraged to spend on equipment and other investments through an extension of the instant asset write-off, which means they can claim a tax break for what they spend.

This attractive tax depreciation benefit is currently restricted to companies with turnovers of up to $50 million, for maximum investments of $30,000.

But this benefit will now be significantly lifted, allowing companies with turnovers of up to $500 million to make assets write-offs of up to $150,000.

The major extension of this tax deprecation benefit will help many businesses in Australia to better work through the coming economic downturn.

At the same time, many individuals who own property investments can boost their cash-flow during the coming economic downturn through claiming the already generous tax depreciation benefits associated with the property.

It is estimated that each year hundreds of millions of dollars in legitimate tax benefits are never claimed by property investors throughout Australia.
This occurs because many property investors do now use the service of a qualified tax depreciation specialist to identify items throughout their property that can be claimed for tax depreciation purposes.

These 'hidden' tax benefits can amount to thousands of dollars in additional tax benefits for individual investors each year if they are correctly identified.

With the 2020/2021 financial year fast approaching, it is important that property investors engage the services of an ATO compliant tax depreciation company to undertake a tax depreciation report for their properties so they can fully claim their generous tax depreciation benefits.

The reality is that many Australian property investors are unaware that a tax depreciation report undertaken by a professional tax depreciation company can identify hundreds of items in an investment property for which you can claim legitimate depreciation benefits.

For example, it may surprise many property investors that even garden gnomes can be depreciated for tax purposes. Under taxation ruling, TR2006/15 garden gnomes can be depreciated for tax purposes as plant over their economic life.

Many investors in Australia totally underestimate the number of items that can be depreciated for tax purposes and this comprehensive list can even include in addition to garden gnomes, cubby houses and if they own an apartment, then common areas such as car parking and recreational facilities.

The tax benefits associated with negative gearing can be very significant with DEPPRO clients achieving tax benefits obtained through depreciation equivalent to 60% of the total purchase price of the property. In some cases, these tax benefits can total $300,000 based on a purchase price of $500,000.

Depreciation is a complex area of taxation that requires a professional company such to undertake a depreciation report because of constant changes in rules

86 400: Founder's Club Offer

Variable rates from 2.74% p.a. for a limited time

What's the Founders Club?

86 400 are still very new in their home loan journey and want to acknowledge and reward all those customers who already have a loan with them as well as new customers who join by 30 June 2020.

From 16th March, 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. Of course, from today their existing variable rate loans will also have their rate reduced by 10bp.

What are the new rates?

Own home loan (variable)

Limited Time Rate (p.a)

Owner occupied
Principle and Interest

2.74%

Owner occupied
Interest only

3.34%

Investment
Principal and interest

3.09%

Investment
Interest only

3.44%

How does this work?

The reference rates won't change, but Founders Club customers will receive an additional discount applied to the loan of 10bp. This discount will remain whilst the loan is on a variable rate throughout the life of the loan.

What's next?

If you haven't completed your accreditation with them - contact brokersupport@86400.com.au today and they can get you set up.

Founder's Club Announcement