Iso Roundup

Good Afternoon and Happy Monday,

It was another busy week information wise. It would seem that change is the new black.

The $250k unsecured business loan is still a talking point and some more information has come to light. From an article from Australian Broker, The Govt indicated plans to make offers to 29 banks and 5 non-bank lenders totalling about $34bn of potential lending to SMEs.

Liberty was one of the most recent non-bank lenders to be announced as participating in the scheme. The determination with an ability to borrow will be based on the strength of the application, as per most ‘normal’ applications. Income vs liabilities will be the greatest factor assessed on two years tax returns business and personal. I am more than happy to have a chat if you wanted to see what capacity you may have.

A brief summary from Liberty’s offering is as follows

• Rate of 4.95% for loan terms of up to 3 years

• No repayments for the first six months with interest capitalised

• No prepayment costs with the ability to redraw

• Available for businesses with an annual turnover under $50 million

• Funding for working capital purposes only (no refinancing of debts)

• The loan to be approved and unconditional by 30 September 2020

Banks in the last week have been continuously updating their policy around who can and can’t borrow. All lenders now require explanations around COVID-19 and its effects on the borrowers income position.

Rates for the most part have remained stable.

Variable rates still in the high 2’s with Auswide’s ‘rate tracker’ loan topping the charts. It’s a basic variable loan at 2.74% up to 95% Loan to Value Ratio.

3yr fixed the cheapest from Teachers Mutual Bank, Firefighters Bank and Uni Bank at 2.14% up to 95% LVR making this very attractive.

I hope this week greets you with much success. I am here if you need to run a scenario or even just have a chat.

JC

Scenarios and interest rates quoted above are suggestions and constitute general advice only.

Justin