Tag: loans

Refinance Home Loan

Unlocking the Potential of Mortgage Refinancing

Posted on | by Allan Hall

Are you considering refinancing your mortgage but unsure whether it’s the right move for you?

When it comes to refinancing, it’s not just about securing a better interest rate; it’s a strategic financial decision that can have a significant impact on your financial well-being.

At Allan Hall Finance, we understand the intricacies of the mortgage market and are here to guide you through this journey. Here’s why you should consider reaching out to us when contemplating a mortgage refinance.

1. Interest Rate Matters

One of the most common reasons people explore mortgage refinancing is to secure a better interest rate. If you haven’t reviewed your current rate in the last 6-12 months, there’s a good chance you’re paying more than you should be. A lower interest rate can lead to substantial savings over the life of your loan.

2. Consolidating Debt

High-interest debts, such as credit cards, personal loans, or car loans, can take a toll on your finances. Refinancing your mortgage offers an opportunity to consolidate these high-interest facilities into a single, lower-interest loan. This not only simplifies your financial management but also reduces your overall interest expenses.

3. Adapting to Change

Your financial situation and goals are dynamic. If you’ve had your mortgage for a while, the equity in your property may have increased. Lenders often offer better terms to borrowers with higher equity. It might be the perfect time to tap into that equity for future investments or other financial needs.

4. Consider the Costs

While refinancing can be a great way to save money, it’s important to consider the costs involved. These typically include new lender application fees, valuation fees, discharge fees, break fees (if you’re on a fixed rate), and legal/settlement fees. Our experienced mortgage brokers at Allan Hall Finance can help you assess whether the potential savings outweigh these costs.

At Allan Hall Finance, we’re dedicated to helping you make informed decisions about your finances. We understand that each situation is unique, and the right refinancing strategy should align with your specific needs and goals.

Don’t let the complexities of refinancing hold you back from potentially improving your financial situation. Please reach out to Allan Hall Finance on 02 9981 2300 or [email protected] and let’s explore how refinancing can be a strategic move toward financial freedom.

Finance Team

Paying a ‘loyalty tax’ with your current lender?

Posted on | by Allan Hall

On the back of the 9th 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 AmountCurrent Monthly Repayments0.50% Discount = Yearly Savings1% 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

flooded street intersection

NSW flood clean-up assistance

Posted on | by Allan Hall

July 2022 flood support

Organisations in disaster-declared Local Government Areas (LGAs) are eligible for a range of support.

Small business grant

Up to $50,000 is available for eligible small businesses and not-for-profit (NFP) organisations affected by the July floods.

Payments can go towards the cost of safety inspections, building repairs, cleaning equipment, materials needed to resume trade, disposing of debris and spoiled stock, or leasing a temporary workspace. 

APPLY FOR THE SMALL BUSINESS GRANT

Disaster Relief Loans

You may be eligible for a low-interest loan to help you replace and repair damage caused to property.

Small businesses, NFPs and sporting clubs affected by the February/March or the July 2022 flooding may apply.

Call the Rural Assistance Authority on 1800 678 593 for further details.

APPLY FOR A DISASTER RELIEF LOAN

For other guidance for flood-impacted households and businesses on dealing with water inundation and staying safe during clean-up visit https://www.nsw.gov.au/floods/recovery/clean-up-advice.

CONTACT ALLAN HALL

business review

HECS/HELP rate rise from June

Posted on | by Allan Hall

On 1 June your HECS-HELP debt is going to get bigger

That’s because the Higher Education Loan Program (HELP) — previously known as HECS — is tied to inflation, which has been surging over the past few months.

Study and training loan indexation rates

On 1 June each year, indexation is applied to the part of an accumulated study and training loan that has remained unpaid for more than 11 months, for:

  • Higher Education Loan Program (HELP)
  • VET Student Loan (VSL)
  • Student Financial Supplement Scheme (SFSS)
  • Student Start-up Loan (SSL)
  • ABSTUDY Student Start-up Loan (ABSTUDY SSL)
  • Trade Support Loan (TSL).

Indexation maintains the real value of the loan by adjusting it in line with changes in the cost of living as measured by the consumer price index (CPI). The indexation figure is calculated each year after the March CPI is released. It is based on financial figures collected by the Australian Bureau of Statistics over the previous 2 years.

The ATO’s table shows the indexation rate applied to all study and training loans:

YEARINDEXATION RATE
20223.9%
20210.6%
20201.8%
20191.8%
20181.9%
20171.5%
20161.5%
20152.1%
20142.6%
20132.0%
Source: ATO

CONTACT ALLAN HALL

flooded street intersection

Relief for flood-affected communities

Posted on | by Allan Hall

Help for businesses affected by storms and floods

Financial support

We outline both state and federal financial recovery assistance for people impacted or affected by the recent NSW floods.

Please liaise with the relevant agencies directly and contact us if you require support in making an application for funding.

Small business and not-for-profit organisations

  • Disaster recovery grant – up to $50,000 to help pay for the cost of clean-up and resuming operations
  • Disaster recovery allowance – a short-term income support payment to assist if you’ve lost income as a direct result of the floods, provided by the Australian Government
  • Stamp duty relief – for replacing insured commercial motor vehicles written off due to floods and storms
  • Disaster relief loans – concessional interest rate loans up to $130,000 for small businesses and up to $25,000 for not-for-profit organisations.

Primary producers

  • Special disaster grant – up to $75,000 to help pay for the cost of clean-up and resuming operations
  • Disaster recovery allowance – a short-term income support payment to assist if you’ve lost income as a direct result of the floods, provided by the Australian Government
  • Stamp duty relief – for replacing insured commercial motor vehicles written off due to floods and storms
  • Natural disaster transport subsidy – up to $15,000 to cover costs of transporting fodder/water to an affected property, stock to sale or slaughter and stock to/from agistment
  • Disaster relief loans – concessional interest rate loans up to $130,000 for business continuity and to replace or repair damage not covered by insurance
  • Flood-affected farmers and land managers who require assistance with livestock assessment, veterinary assistance, emergency fodder and livestock euthanasia or burial, can call 1800 814 647.

Sport and recreation clubs

  • Disaster relief grant – up to $2,000 to assist with clean-up and restoring essential facilities and equipment
  • Disaster relief loans – concessional interest rate loans up to $10,000 to help meet the costs of restoring essential club facilities, equipment or other assets

Clean-up support

Flood-impacted businesses will receive clean-up assistance, including the removal of debris, mud and green waste.
 
Skip bins and dump trucks have started to appear on the streets. Where there are no skip bins or dump trucks available, separate waste on the kerbside until they arrive.

Cleaning up after a natural disaster can be dangerous. Here’s some advice on how to clean up safely and deal with hazardous waste.

Request clean up support »

Additional support

Use the Disaster Assistance Finder to generate a customised list of flood recovery services.

Also, taxpayers in flood-affected local government areas in NSW and QLD are provided with immediate tax relief to alleviate pressures on cash flow and operations.

The Treasurer announced that affected taxpayers will be eligible to receive the following concessions:

  • additional time to meet their upcoming Business Activity Statement (BAS) obligations
  • taxpayers paying PAYG instalments on a quarterly basis are eligible to vary upcoming instalments and receive a refund of previously paid instalments
  • claims for GST refunds will be expedited to ensure eligible taxpayers promptly receive their payments
  • small business and individual taxpayers will be able to notify the ATO about their circumstances to assist them in their situation.

The ATO has also announced that small businesses and individuals who need to lodge a BAS or instalment with an original due date of 28 February 2022 or 21 March 2022, and are not able to lodge by that date, may lodge these returns by 28 March 2022 without needing to request a lodgement deferral. Taxpayers who are unable to lodge by the new deadline of 28 March 2022 should contact the ATO and apply for a deferral as required.

The ATO has indicated that the payment due date will remain the same for these returns, but they will take an empathetic approach to the situations of affected taxpayers. Note that this concession does not apply to significant global entities or large businesses, who should contact the ATO to discuss their situation.

The ATO understands that tax is not your number one priority at this time, however you are encouraged to lodge when you can. The ATO has established an emergency Infoline on 1800 806 218 to answer any questions or provide urgent support to taxpayers.

Mental health support

Natural disasters, cleaning up and recovery can take a toll on your mental and physical health. It’s important for you to seek support and look after your own and your employees’ wellbeing.

Find out more »

CONTACT ALLAN HALL

Man holding much money

SME Recovery Loan Scheme extended

Posted on | by Allan Hall

Support extended to SMEs adversely affected by COVID-19

Proposed Scheme extension to offer loans period from 1 January 2022 to 30 June 2022 with a Government guarantee of 50%.

In recognition of the continued economic impacts of the pandemic, the Government announced on 13 December 2021 that it proposes to amend the Scheme Rules to extend the SME Recovery Loan Scheme (under varied terms) to provide support to small and medium enterprises (SMEs) adversely economically affected by coronavirus.

Government and lenders ensure better SME access to finance to maintain and grow businesses.

The Scheme is enhancing lenders’ abilities to provide cheaper credit to otherwise viable SMEs for additional funding to get through the crisis, recover and invest in the future.

The SME Recovery Loan Scheme builds on earlier loan schemes introduced during COVID-19. Under the existing SME Recovery Loan Scheme, loans are available from 1 April 2021 until 31 December 2021 with a Government guarantee of 80%.

Under the proposed Scheme extension, loans will be available from 1 January 2022 until 30 June 2022, with a Government guarantee of 50%.

The Government’s SME Recovery Loan Scheme is designed to support economic recovery and provide assistance to SMEs dealing with the economic impacts of the coronavirus crisis. Treasury’s website will be updated with further information once the proposed amendments to the Scheme Rules have been finalised.

Contact Allan Hall Business Advisors in Brookvale

cash in a hessian sack

SME Loan Recovery Scheme

Posted on | 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.

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resilience sign

SME Recovery Loan Scheme

Posted on | by Allan Hall

Expanded SME loan scheme

The government has announced an extension and expansion of its SME Recovery Loan Scheme.

Enhancing lenders’ ability to provide cheaper credit, the scheme is allowing many otherwise vulnerable SMEs to access vital additional funding to get through the impact of Coronavirus, recover and invest for the future.

The expansion of the scheme will see the limit of eligible loans rise from $1 million to $5 million, as well as a cost split shift with the government guaranteeing a higher portion of the loan. The shift would see the government’s 50-50 split with banks shift to an 80-20 split. 

Businesses with a higher turnover are expected to also benefit, as the cap on eligible turnover increases from $50 million to $250 million.

Borrowers will be offered a repayment holiday on both principal and interest for up to 24 months, with loan terms increased from five years to 10 years.

The expanded scheme builds on the framework established in the two phases of the Coronavirus SME Guarantee Scheme, and specifically targets SMEs currently receiving JobKeeper.  The scheme is only open to recipients of the JobKeeper payment between 4 January 2021 and 28 March 2021.

Loans will be made available from 1 April 2021 until 31 December 2021.

Both self‑employed individuals and non-profit businesses are eligible. Businesses that have accessed loans in Phase 1 and Phase 2 can also apply for loans under the scheme.

Got questions about further eligibility requirements or how to apply for a loan? Get in touch with our Tax & Accounting team who will be able to assist you on 02 9981 2300.

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interest rates overlaid onto graph

Home loan interest rates merit closer inspection

Posted on | 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 Team

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. 

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. 

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