Banks Response To Reduce the Impact of COVID-19

Relief Programs Announced

This is a summary of the support measures announced by the major banks since 19 March 2020 in respect to the impact of the coronavirus crisis. This page will be updated on a regular basis as banks firm up their offerings, and more banks and non-banks on our panel announce their measures.

ANZ Bank

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For All Home Loan Customers

• 0.15% pa reduction in variable interest home loan rates (further to the variable rate reductions earlier in March) – effective 27 March 2020
• 2 year Owner Occupied Fixed Rate of 2.19% pa, Principal & Interest under the ANZ Breakfree package – effective 27 March 2020
• Up to six months deferral on their home loan mortgage repayments with a review at three-months, with interest capitalised.

For Small Business Owners

• 0.25% pa reduction on variable interest small business loans, effective 27 March 2020, resulting in a 0.50% pa reduction in March
• Deferral of loan repayments for term loans for six months, with interest capitalised
• Temporary increase in overdraft facilities available for 12 months.
• 0.80% pa reduction on 2 or 3 year Fixed Rate of 2.59% pa for secured small business loans up to $1M – effective 3 April 2020.

Commonwealth Bank

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For All Home Loan Customers

• Deferred home loan repayments, with interest capitalised, for up to six months. Loan terms will be extended so repayments will remain the same after the support period
• 1, 2 or 3 year Owner Occupied Fixed Rate of 2.29% pa, Principal & Interest under a MAV package – effective 30 March 2020
• Increase in 12 month term deposit to 1.7% pa – effective 20 March 2020
• Reducing direct debit amounts for variable rate loans paying Principal and Interest repayments to the minimum required – effective 1 May 2020. Opting out is available.

For Small Business Owners

• Deferred loan repayments for 6 months with interest capitalised and repaid when the loan commences – all small business clients automatically “opted in” for April, May, June 2020 and will be contacted in May if they need a further 3 month deferral
• Reduction in small business loans by 1% across all business loans where the variable rate is calculated based on the current cash rate – effective 3 April 2020
• Deferred repayments on overdraft products, for 90 days
• Unsecured loans of up to $250,000 with no establishment or account fees, and no repayments required for 3 – 6 months. For the first 6 months, interest will be deferred and capitalised at a reduced variable rate of 5.5%, reducing to 4.5% on 3 April 2020. From 6 months, principal and interest repayments will be required.

NAB

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For All Home Loan Customers

• 1 year Owner Occupied Fixed Rate of 2.39% pa, or 2 or 3 year for 2.29%, Principal & Interest under a Choice Package package; first home buyers will have access to a rate of 2.19% p.a., fixed for two years – effective 25 March 2020
• Eligible customers can pause their home loan repayments for six months (including a 3 month checkpoint) 
• Customers with deposits of $5,000 to $2M can access a 10-month term deposit rate of 1.75% p.a. for 10 months, effective 24 March 2020
• For Australians aged 65 years and over the rate will be 2% p.a. for eight months (up to $500,000 per customer).

For Small Business Owners

• Defer principal and interest payments for up to six months on business loans on floating and variable rates, and equipment finance loans
• 2% rate cut on new loans and overdrafts – effective 30 March 2020
• Additional 1% reduction (on top of the 0.25% reduction earlier in March) on variable rates for small business loans – effective March 30.
• Defer business credit card repayments for 6 months (with a 3 month checkpoint).
• Unsecured three-year term loan up to $250,000, credit criteria applies.

Macquarie Bank

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For All Home Loan Customers

• 1, 2 or 3 year Owner Occupied Fixed Rate of 2.39% pa for 70% LVR (otherwise 2.49% pa for 80% LVR), Principal & Interest under an Offset Package package – effective 27 March 2020
• Six months deferral on their home loan mortgage repayments (3 more months on current repayments no longer available) and higher adjusted repayments apply for remainder of loan term
• Term Deposit special offer of 1.75% p.a. interest for 3 to 12 months term deposit products.
• Introductory rate of 2.65% pa for Macquarie Savings Account. Ongoing interest rate for everyday savers increasing to 1.35% p.a. for all balances up to $1M.

For Small Business Owners

• Deferred principal and interest payments on commercial loans, equipment loans and overdrafts for 6 months
• Equity in homes can be accessed for new business loans, with a reduction of 1% pa off existing business lending rates, with no payment due for the first six months. 

St George Bank

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For All Home Loan Customers

• 1, 2 or 3 year Owner Occupied Fixed Rate of 2.29% pa, Principal & Interest under the Advantage Package package – effective 27 March 2020
• Three months deferral on their home loan mortgage repayments with extension for a further three months available after review.
• Term Deposit special offer of 1.7% p.a. interest for 12 months for all Australians: special rate with interest paid monthly to provide customers with a higher return on their savings (up to $500,000 per customer)
• For Australians aged 65 years and over the rate will be 2% p.a. for eight months (up to $500,000 per customer).

For Small Business Owners

• Deferred principal and interest payments on business term loans (excluding credit cards, overdrafts, cashflow/invoice/trade finance, commercial bills) and equipment finance for six months, for customers with business balances of less than $3M
• 4% reduction on unsecured lending term loans – effective 23 March 2020
• 2% reduction on overdrafts – effective 6 April 2020
• 1% reduction for small business cash-based loans – effective 6 April 2020
• No establishment fees for equipment finance loans until the end of June
• Unsecured three-year term loan up to $250,000, credit criteria applies.

Westpac

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For All Home Loan Customers

• 1, 2 or 3 year Owner Occupied Fixed Rate of 2.29% pa, Principal & Interest under a Premier Advantage Package package – effective 27 March 2020
• Three months deferral on their home loan mortgage repayments with extension for a further three months available after review
• Term Deposit special offer of 1.7% p.a. interest for 12 months for all Australians: special rate with interest paid monthly to provide customers with a higher return on their savings (up to $500,000 per customer)
• For Australians aged 65 years and over the rate will be 2% p.a. for eight months (up to $500,000 per customer).

For Small Business Owners

• Deferred principal and interest payments on business term loans (excluding credit cards, overdrafts, cashflow/invoice/trade finance, commercial bills), equipment finance facilities and equipment loans for six months for customers with business balances of less than $3M
• 4% reduction on unsecured lending term loans – effective 23 March 2020
• 2% reduction on overdrafts – effective 6 April 2020
• 1% reduction for small business cash-based loans – effective 6 April 2020
• No establishment fees for equipment finance loans until the end of June 2020
• Unsecured three-year term loan up to $250,000, credit criteria applies.

Contact us for assistance

Please feel free to reach out to the SF Capital team should you require help to make a request to your lender for financial assistance or have general enquires about your circumstances at this time.