There has been a number of interest rate changes and COVID-19 support measures introduced over the past 24 hours to support business and households to support liquidity in the economy.
The major banks have all announced rate changes and support measures for mortgage customers. This is in response both to the rate cut yesterday and intervention measures to support the economy.
Significantly, customers in hardship will have the ability to suspend loan repayments for up to six months.
The interest rate cuts are primarily centred around fixed interest rates.
These rates are attractive though it is important to ensure that these are appropriate for your circumstances.
The major banks have all announced rate changes and support measures that include a suspension of loan repayments for up to six months.
The need for banks to support liquidity, whilst taking into account rising funding costs, has seen banks respond more aggressively with cuts to their fixed interest rate products as follows:
|
Personal P&I* |
ANZ |
CBA |
NAB |
Westpac |
|
Cut to Variable Rate |
0.15% |
No change |
No change |
No change |
|
Fixed Rate - 1 year |
No change |
2.29% |
2.39% |
2.29% |
|
Fixed Rate - 2 year |
2.19% |
2.29% |
2.29% |
2.29% |
|
Fixed Rate - 3 year |
No change |
2.29% |
2.29% |
2.29% |
|
Investment P&I* |
ANZ |
CBA |
NAB |
Westpac |
|
Cut to Variable Rate |
0.15% |
No change |
No change |
No change |
|
Fixed Rate - 1 year |
No change |
2.69% |
2.69% |
No change |
|
Fixed Rate - 2 year |
No change |
2.89% |
2.59% |
No change |
|
Fixed Rate - 3 year |
No change |
2.89% |
2.59% |
No change |
|
* - Rates based on Premier Packages |
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|
^ - Premium applies for Interest Only |
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A "relief" package will apply to more than $100 billion of existing small business loans.
The major banks will also apply varying interest rate deductions applied to both commercial property loans and working capital facilities.
There is also some fee relief planned across a number of business and merchant products too.
These are unprecedented events, at least in recent memory.
The banking system in Australia remains robust, sufficiently regulated and supported.
There will be some delays in getting some matters resolved, and priority will be directed with those with hardship matters.
The final message is not to make any rash changes to your position. Conversely, decisions that you have already made around other strategies or asset acquisitions may still be the right ones.
Try and enjoy the weekend.
The Team at MCP
www.mcpfinancial.com.au
enquiry@mcpgroup.com.au