Small business responsible lending obligations exemption extended

Posted on 8 October 2024 | by Allan Hall

Government extends the small business responsible lending obligations exemption

Government Commitment to Expand Credit Access for Small Businesses until 2026

Currently an exemption allows small businesses to access loans or credit without being assessed against the Responsible Lending Obligations (RLOs), so long as there is a genuine business purpose.

The Government is extending the RLO exemption, allowing small businesses to continue to have access to the credit they need, when they need it, whether it be to hire more staff or upgrade facilities.

The evidence suggests that the exemption is working well. It is beneficial for small businesses, enables streamlined access to credit, and there is no substantive evidence of harm.

Extending the exemption will provide an additional two years of data to inform any future decisions of Government. For the purposes of the exemption, a small business is one that has fewer than 100 employees or revenue of $5 million or less in the previous financial year.

The National Consumer Credit Protection Regulations 2010 (the Credit Regulations) which facilitates the exemption will be amended to extend the exemption for the two‑year period, ending 3 October 2026.

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growth, innovation, lending, small business

Lending Market Update

Posted on 20 September 2024 | by Allan Hall

Shifts in Interest Rates and What It Means for You

While the official cash rate has remained stable, there have been some notable changes in the lending market recently with fixed rates getting slashed.

Several lenders have reduced their fixed rates by up to 1% in some cases, signalling potential movement to come in the market.

Historically, when fixed rates start to drop like this, it can be an indication that variable rates may follow suit in the near future.

Deciding whether to lock in a fixed rate or stick with a variable rate depends on several factors. While lower fixed rates may seem tempting, they might not always be the best option for the long term.

Mitch Cleary is available to discuss these options with Allan Hall clients (alongside their accountant) to ensure the most suitable financial decisions are made.

If you’d like a free review of your current setup or have any questions, don’t hesitate to reach out!

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finance, Financial Services, interest rates, lending

Paying a ‘loyalty tax’ with your current lender?

Posted on 10 February 2023 | by Allan Hall

On the back of the 9^th consecutive rate rise by the RBA this month, it’s more important than ever to pay attention to the interest rate you currently have, to ensure you are not paying a ‘loyalty tax’ with your current lender.

Each time the RBA has increased the cash rate in the past 9 months, every lender has passed on the full amount within a couple of weeks to existing customers. What this means is that whilst your current lender passes on the full increase, they are offering new customers a reduced rate to win more business.

To make sure you’re not paying the ‘loyalty tax’, please reach out to Allan Hall Finance so we can work with you to get you the best deal possible.

Also, there is $359 billion worth of fixed rate loans which are due to expire this year. If you have one of these loans where your current fixed rate is around the 2% mark, you will be looking at a rate of 5%+ once it expires.

It’s important to start planning months ahead for this and Allan Hall Finance can help you through this transition by letting you know what your increased repayments will look like. For example, if you have a $700,000 loan, your repayments could increase by $1,170 per month post the fixed rate.

Allan Hall Finance will also explore the market to make sure you are getting the best deal possible post the fixed rate expiring.

By exploring the market for you, below is an example of what you could potentially save by simply engaging Allan Hall Finance to work for you to find a better deal.

Loan Amount	Current Monthly Repayments	0.50% Discount = Yearly Savings	1% Discount = Yearly Savings
$500,000	$2,918	$1,872	$3,708
$1,000,000	$5,836	$3,756	$7,428
$1,500,000	$8,754	$5,640	$11,148
$2,000,000	$11,672	$7,524	$14,868
$2,500,000	$14,590	$9,408	$18,576
$3,000,000	$17,508	$11,292	$22,296
$4,000,000	$23,343	$15,058	$29,724

Lenders are also offering cashbacks between $2,000 – $5,000 to refinance

* Current monthly repayment amount is based on an Owner Occupied variable rate of 5.75% and savings are based on a 30-year loan term. T&Cs and lender approval apply

There are also some attractive cashback offers which some lenders are offering to get new business.

To speak with a member of the team from Allan Hall Finance, please get in contact.

CONTACT ALLAN HALL FINANCE

SME Loan Recovery Scheme

Posted on 30 August 2021 | by Allan Hall

More businesses eligible for recovery loans up to $5m

The government has dropped criteria for its SME Recovery Loan Scheme, meaning more businesses with a turnover up to $250 million can have access.

The Scheme is designed to support economic recovery and to provide continued assistance to small and medium enterprises (SMEs) dealing with the economic impacts of the coronavirus crisis.

The Government has announced that, in recognition of the continued economic impacts of COVID-19, the current requirements for SMEs to have received JobKeeper during the March quarter of 2021 or to have been a flood-affected business in order to be eligible under the SME Recovery Loan Scheme will be removed.

The Scheme enhances lenders’ ability to provide cheaper credit, allowing many otherwise viable SMEs to access vital additional funding to sustain them the impact of COVID-19, recover and invest for the future. The Government will work with lenders to ensure that eligible businesses can access finance to maintain operations and grow.

Loans are available from 1 April 2021 until 31 December 2021.

The Scheme rules will be amended to reflect the updated eligibility and loans will be available through participating lenders once the changes become effective.

Please visit the Australian Government’s Treasury website for more information for SMEs and lenders.

Home loan interest rates merit closer inspection

Posted on 9 December 2020 | by Allan Hall

RBA cuts cash rate again in November

All lenders have been busy trying to find the best way to ‘pass on’ the rate cut to their customers.

Whilst most lenders did not pass on the rate cut to their existing customers via their variable interest rate, they did so by lowering the majority of their fixed rates.

With owner-occupied loans with principal and interest repayments being in the low 2% to high 1% range, people are looking to this option more and more.

Now is a great time to check any loans to ensure that you are getting the best rate possible to help save money and build up a buffer. However, please note that there are pros and cons to fixing all of your loan. We often find that a mix of variable and locked-in rates can be a good option to access low rates and build in flexibility.

Please contact our Finance team to discuss your options.

Allan Hall Finance Awarded Brokerage of the Year 2020

Allan Hall Finance was awarded Brokerage of the Year again for 2020. With this year’s awards being the most competitive in Custom Equity’s history, this is testament to the value Mitchell, Stephen and David provide to our clients and our greater firm at Allan Hall Business Advisors.

Read full announcement »

Have you got a question about your mortgage or are you looking to refinance? Get in touch with our Finance Team today who will be able to assist you.