New iRESIstable Rates

Please see the new LVR tiers and borrower rates below:

PRODUCT

REPAYMENT

LVR

BORROWER RATE

Essential Options Prime Investment

P&I

0 ' " 65%

2.69% (new category)

Essential Options Prime Investment

P&I

65.01% - 80%

2.79%

Essential Options Prime Investment

P&I

80.01% - 90%

3.09%

The new 0-65% LVR band has the same loan amount parameters, product features and fees as the existing Prime Investment P&I LVR bands.

For more information visit www.resi.com.au, reach out to your State Representative or email brokersupport@resi.com.au

Resi Essential Options

*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.

ANZ Update

The 'Government SME Recovery Loan Scheme' is designed to support the recovery of small to medium enterprises (SME) affected by the Coronavirus Pandemic (COVID-19) or the recent March 2021 floods.

It's available to your customers with an ABN and with an annual turnover of less than $250m who accessed JobKeeper payments between 4 January - 28 March 2021, as well as those who were impacted by the recent March 2021 floods.

For further information about the Government SME Recovery Loan Scheme, visit ANZ's FAQs page on anz.com.

Here's what's available to your eligible business customers under the Scheme:

A variable-rate ANZ Business Loan1, with payments deferred for 12 months. Following this initial period, a further deferral period of 12 months may be available. They may borrow up to $5 million.

The features and benefits:

  • Variable-rate loan1
  • Borrow up to $5 million
  • Loan terms of up to 10 years
  • Ability to make additional unscheduled repayments at any time
  • Secured or unsecured loan options2 available (excluding residential property)
  • No loan approval fee and no account fees
  • Payments deferred for 12 months. Following this initial period, a further deferral period of 12 months may be available3
  • Where eligible, capacity to refinance existing loans (including government-guaranteed loans).

Note: For your customers not receiving JobKeeper during this period, it is essential to note that Phase 2 of the existing Australian Government SME Guarantee Scheme remains open to eligible borrowers until 30 June 2021.

Who is eligible?

Please ensure that your customer's business and lending needs meet the Government's SME Recovery Loan Scheme criteria before they apply. For them to be eligible:

  • Their business must have an ABN
  • For businesses impacted by the Coronavirus Pandemic:
    • Their business must have an annual turnover of less than $250 million (2019-20 income year) or is likely to be less than $250 million (2020-21 income year) or is likely to be less than $250 million (2021-22 income year); an
    • Their business must have received eligible JobKeeper payments at any stage during 4 January and 28 March 2021
  • For businesses impacted by the recent floods:
    • The recent floods must have adversely economically impacted their business; and
    • Their business must be located in or operate in a flood-affected Local Government Area
  • They are applying for new or refinanced lending under the Scheme, including those from the SME Guarantee Scheme
  • Lending cannot be used to purchase residential property or a financial product or provide loans to an 'associated entity.
  • Lending is capped at $5 million per ABN. This incorporates all lending that qualifies under the Scheme taken out by the ABN from any provider, excluding any Phase 1 and Phase 2 Scheme lending.
  • All lending contracts under the Scheme must be entered into by 31 December 2021.

For more information and eligibility details, visit Government SME Recovery Loan Scheme FAQs.

Action:

  • Refer to the attached FAQs
  • Please contact your BDM for further questions.

Warning:

1Rates may vary based on ANZ's credit criteria or your financial circumstances.

2 For a secured loan, you'll need to provide security acceptable to ANZ, meeting ANZ's requirements, including minimum security coverage and suitable location. Residential property can't be used as security under the Government Guarantee Scheme. For an unsecured loan, you won't need to provide an asset as security, although a personal guarantee may be required (for example from company directors).

3 Payment deferral of 12 months is available on term loans, with interest capitalised. Interest capitalisation is the addition of unpaid interest to the outstanding loan balance. The outstanding loan balance increases when payments are postponed during periods of deferment and unpaid interest is capitalised.

CommBank Update

Requirement for 2020 Financial Statements

Now that the deadline (31 March 2021) for businesses to lodge their completed 2020 financials has passed, 2019 financial statements are no longer acceptable.

All applications requiring supporting financial information will require completed 2020 Financial Statements.

Car and equipment finance carded interest rates

The following rates form part of the Government Coronavirus SME Guarantee Loan Scheme Phase 2 (The Scheme). Assessment and Declaration forms can be found below. For transactions that do not meet The Scheme criteria and require a standard Asset Finance product, add 70 basis points.

Finance Amount

3 years

4 years

5 years

EEEF

$20,000 - $49,999
(Equipment only)

Contact your Business Development Executive

$20,000 - $249,999

2.79%

3.24%

3.54%

0.5% p.a. off all rates

$250,000 +

Contact your Business Development Executive

Important reminders

Broker Checklist required for complete applications

Please continue to complete the Asset Finance Full Application Broker Checklist and include this with your applications.

Asset Finance Coronavirus Impact Assessment Finance form

The Asset Finance Coronavirus Impact Assessment form must be completed and submitted with each application (re-finances and balloon restructures excluded).

The Coronavirus SME Guarantee Scheme Phase 2 Declaration form must be provided to customers (when required).

Instant Asset Write-off - Extended to 30 June 2022

The Federal Government has announced a further extension of the Instant Asset Write-off, which allows eligible businesses who invest in vehicles and equipment to claim an immediate deduction for certain costs relating to depreciating assets.

How it works

  • Businesses with an aggregated turnover of up to $5 billion may be eligible. For a business with an aggregated turnover of less than $50 million, the full cost of all eligible second-hand assets may also be claimed.
  • Depreciating assets may include new business vehicles and equipment. The assets can be second hand for businesses with an aggregated turnover of less than $50 million.
  • Depreciating assets must be acquired after 6 October 2020 and installed ready for use by 30 June 2022.
  • Businesses may be able to borrow funds to purchase equipment and still claim a deduction for the cost of eligible items.
  • Deduction claims may be made for the year in which the equipment is used or installed ready for use. This may be the same year in which the equipment is financed.
  • Unlimited numbers of new eligible assets of any dollar value (and eligible asset improvements for new and existing assets) if the business has an aggregated annual turnover of less than $5 billion.

Visit this link for more details or 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.

*Fixed rates are current as at 06/04/2021 until withdrawn. Available on new borrowings only. Please check with your CommBank Business Development Executive on pricing for these customers. Cannot be offered to businesses with aggregated sales turnover greater than $50m.

#0.50% p.a. discount is for qualifying energy efficient vehicles and equipment, and applies the rate you would normally have paid for the type of equipment you wish to finance

Rates outside of these terms must be negotiated. For brokerage over 3% please contact your CommBank Business Development Executive.

Macquarie Bank Update

Please see updated processing times as of Monday 29 March 2021 for fully packaged deals as per Macquarie's application checklist.

We've also included two updates for your reference - see below for further information.

Average hold time to speak to broker support:

3 minutes

Average time to file pick up:

4 hours

Average time to assessment:

3 days

Customer solutions response time (enquiries for existing clients incl. fixed rates and retentions):

5 days

Principal increase commission changes

In response to regulatory requirements related to conflicted remuneration, Macquarie is changing how they calculate commission on principal increases made during the first 12 months from and including the date of settlement.

This change came into effect for new principal increase settlements from 1 March 2021.

They are also moving to a flat-fee commission structure, and the new commission will be a one-off payment of $350 per principal increase.

The commission for principal increases occurring after 12 months from the settlement will be an upfront payment of 0.65% of the principal increase.

Your client will need to have held their home loan for at least six months before they can apply for a principal increase, and the minimum principal increase amount is $25,000.

Verifying client identification

As part of the regulatory obligations under Anti-Money Laundering/Counter-Terrorism Financing (AML/CTF) legislation, identification details for new and existing clients will have to be clarified.

From time to time, existing clients may be contacted directly to provide certain documentation or information.

If you're contacted by a client regarding this and have any questions or concerns, please reach out to your business development manager.

Adelaide Bank Update

Please be advised that Adelaide Bank's service levels are at 15 business days for a submission with all relevant documentation supplied to begin the full assessment.

Please note, the quoted SLA is applicable to all files in progress as well as new incoming files.

Please contact your local Business Development Manager, should you have any further queries.

Annual Broker Survey

MPA's annual Brokers on Aggregators survey is back!

Please take a few minutes of your day to rate your organisation's performance via the quick survey here. The survey closes on 30 April so be sure to meet the deadline and forward the survey link to anyone who might miss it.

The Brokers on Aggregators report will be available in issue 21.07 of MPA magazine, out in July, and online.