- Talk to your bank BEFORE you miss a loan repayments or fall in arrears
- Request financial assistance under the bank’s “COVID-19 Financial Assistance” (i.e. NOT the banks standard “Hardship Request”)
- Remain within the terms of the arrangements you make with your bank
- Keep talking to your bank even if you require additional assistance
- Talk with your Mortgage Specialist as we can help guide you through the challenges and confusion
Many borrowers are currently asking whether it is worth their while to “get off” their fixed rate and switch to the record low interest rates currently being offered by banks.
If you are considering a similar change to your Home Loan or Investment Property Loan please note there are several key points relating to “Fixed Rate Break Costs” you need to be aware of prior to making your decision to ensure that any change to your Home Loan or Investment Property Loan will be financially beneficial for you.
- The bank will charge a fixed rate break fee + an administration fee
- This fixed rate break fee is not a flat fee and can change on a daily basis
- The fixed rate break fee can be nominal or significant subject to your current interest rate and the remaining fixed rate term
- Banks will only quote the fixed rate break fee directly to the borrower
Q: Do I need to know the fixed rate break fee prior to breaking my fixed rate ?
A: Yes … This fee can be significant and the costs may exceed the potential savings you are hoping to achieve.
Q: How can I obtain my Fixed Rate Break Fee ?
A: Contact your bank via the telephone number which appears on your loan statement. (Note: Banks are reluctant to provide this information via email or internet banking)
As you can imagine the banks are currently experiencing high volumes of telephone calls which is resulting in extended delays in telephone queues, so I recommend you have something else to read or do whilst you are waiting for the bank to answer your call.
If you have any questions or concerns relating to your Home Loan, Investment Property Loan or Business Loan please feel free to call or email as you are a valued client of DPF Mortgage Specialists and our team is keen to help.
Once you obtain the Fixed Rate Break Cost simply email this information to firstname.lastname@example.org and I will complete the “Financial Benefit vs Cost” calculations and contact you to discuss your options.
The banks are offering Financial Assistance Packages to customers who are suffering financial hardship as a result of the COVID-19 (coronavirus) pandemic.
These assistance packages vary from bank to bank and can include:
• Home Loan & Business Loan Repayments paused for 3 – 6 Months
• Home Loan & Business Loan Repayments switched to Interest Only
• Pausing Repayments on Credit Cards, Car Loans & Personal Loans
Frequently Asked Questions
Q: How can I apply for Financial Assistance ?
A: Contact your bank directly via telephone or you can apply online via your Internet Banking Platform.
Q: Can DPF Mortgage Specialists provide a list of the banks contact telephone numbers & links for online requests for financial assistance ?
A: Yes … Below is the list of the banks contact details to request financial assistance
Q: Will the bank continue to charge interest on my Home Loan / Business Loan during the repayment holiday ?
A: Yes … Banks may extend the loan term to accommodate the interest or may require other arrangements (Please check with your bank).
Q: Will asking for Financial Assistance have a negative effect on my Credit Score ?
A: The banks acknowledge the Pandemic is outside the borrowers control & have advised a request for financial assistance will NOT have a negative impact on your credit history if you who make arrangements with your bank and remain with these arrangements.
Please be assured the DPF Mortgage Specialists team are here to help you as now, more than ever, we know our clients need to have access to experienced specialists who can provide them with the information they need and source the best options to help them through these challenging times.
If you have any questions or require any assistance please do not hesitate to call or click on CONTACT US
Stay safe & well.
|Bank||Link for Online Request Form||Telephone|
|CBA||CBA Online Request||13 30 95|
|Westpac||Westpac Online Request||13 20 32|
|NAB||NAB Online Request||1300 683 106|
|ANZ||ANZ Online Request||1800 252 845|
|Macquarie||Macquarie Online Request||1300 363 330|
|BankWest||BankWest Online Request||1300 769 173|
|St George||St George Online Request||1300 303 110|
|Suncorp||N/A||13 11 55|
|Heritage||N/A||13 14 22|
|ING||N/A||1300 349 166|
|Bank Australia||N/A||13 28 88|
|BOQ||N/A||1300 557 272|
|Citibank||Citibank Online Request||1800 722 879|
|ME Bank||N/A||13 15 63|
|My State||N/A||13 80 01|
|QBank||N/A||13 77 28|
|Teachers Mutual||N/A||1800 862 265|
Many banks were quick to advertise & announce how good they were to pass on the full 0.25% p.a. RBA rate cut in June 2019.
Not surprisingly many of these same banks were making far less noise when they held back from passing on the full 0.25% p.a. rate cut announced by the RBA in July 2019. (i.e. total 0.50% rate cut over 2 months).
Below is a list of the Banks & their combined interest rate reductions for the months of June and July 2019.
Rate Reduction June:
Rate Reduction July:
|Macquarie||0.25% p.a.||0.20% p.a.||0.45% p.a.|
|ING||0.25% p.a.||0.20% p.a.||0.45% p.a.|
|Auswide Bank||0.25% p.a.||0.25% p.a.||0.50%p.a.|
|ME Bank||0.25% p.a.||0.15% p.a.||0.40% p.a.|
|AMP Bank||0.25% p.a.||TBA|
|CBA||0.25% p.a.||0.19% p.a.||0.44% p.a.|
|BankWest||0.25% p.a.||0.19% p.a.||0.44% p.a.|
|NAB||0.25% p.a.||0.19% p.a.||0.44% p.a.|
|Bank Australia||0.25% p.a.||0.16% p.a.||0.41% p.a.|
|Bank of Qld||0.25% p.a.||0.15% p.a.||0.40% p.a.|
|IMB Bank||0.25% p.a.||Pending|
|RACQ||0.25% p.a.||0.25% p.a.||0.50% p.a.|
|Westpac||0.20% p.a.||0.20% p.a.||0.40% p.a.|
|St George||0.20% p.a.||0.20% p.a.||0.40% p.a.|
|RAMS||0.20% p.a.||0.20% p.a.||0.40% p.a.|
|Bendigo Bank||0.20% p.a.||Pending|
|Suncorp||0.20% p.a.||0.19% p.a.||0.39% p.a.|
|ANZ||0.18% p.a.||0.25% p.a.||0.43% p.a.|
|CUA||0.15% p.a.||0.17% p.a.||0.22% p.a.|
The Federal Treasurer (Josh Frydenberg) has already commenced his efforts to encourage the banks to pass on this additional 0.25% p.a. rate cut in full.
Is your bank charging you more than they need to ???
A Special 5 Year Fixed Rate of only 3.49% p.a. is currently available for First Home Buyers … WOW !!!
This will provide FHB’s with the confidence of knowing they have secured an incredibly low rate which cannot increase for the first 5 years of their Home Loan.
Not only this, but FHB’s can make additional repayments of up to $30,000.00 to reduce their loan balance & can also redraw these additional repayments if they need to have access to these funds in the future.
Click on “CONTACT US” or call 07 5527 4744 to talk with our Mortgage Specialists
We absolutely love saving you $$$
Listed below are the Interest Rate reductions announced by banks following the recent 0.25% RBA rate cut
Date to be applied:
|Macquarie||0.25% p.a.||21st June 2019|
|ING||0.25% p.a.||25th June 2019|
|Auswide Bank||0.25% p.a.||2nd July 2019|
|ME Bank||0.25% p.a.||27th June 2019|
|AMP Bank||0.25% p.a.||24th June 2019|
|CBA||0.25% p.a.||25th June 2019|
|BankWest||0.25% p.a.||25th June 2019|
|NAB||0.25% p.a.||14th June 2019|
|Bank Australia||0.25% p.a.||24th June 2019|
|Bank of Qld||0.25% p.a.||25th June 2019|
|AFG||0.25% p.a.||14th June 2019|
|Citibank||0.25% p.a.||25th June 2019|
|IMB Bank||0.25% p.a.||21st June 2019|
|Pepper||0.25% p.a.||24th June 2019|
|Westpac||0.20% p.a.||18th June 2019|
(Interest Only Invest Loans)
|0.35% p.a.||18th June 2019|
|St George||0.20% p.a.||18th June 2019|
|RAMS||0.20% p.a.||18th June 2019|
|Bendigo Bank||0.20% p.a.||28th June 2019|
|Suncorp||0.20% p.a.||21st June 2019|
|Heritage||0.20% p.a.||21st June 2019|
|ANZ||0.18% p.a.||14th June 2019|
|CUA||010% p.a. – 0.15% p.a.||18th June 2019|
Many senior economists are predicting the Reserve Bank will announce a further rate reduction in the next month or 2 with a potential 3rd rate cut prior to Christmas.
Q: Why ???
A: They believe one rate cut will simply not be sufficient to stimulate the Australian economy to the level the RBA are seeking.
Many banks appear to agree & are already factoring in further rate cuts by reducing their 2, 3 & 5 Year Fixed Interest Rates to new record low rates.
CONTACT US if you are considering locking part or all of your Home Loan / Investment Property Loan on a Fixed Interest Rate.
Borrowers & Home Buyers will be rejoicing the decision of the Reserve Bank Board to reduce the Official Cash Rate to a NEW RECORD LOW 1.25%.
Banks are already under pressure to pass on this rate cut in full to their customers with the Federal Treasurer Josh Frydenberg having already holding meetings with the Big 4 Banks to remind them to remain “Customer Focussed” which was a key recommendation of the recent Royal Commission.
The new government is keen to ensure this happens & senior economists agree the banks can’t afford to be stingy or else they will face a wave of borrowers seeking better offers from other banks.
Keep an eye out for the upcoming announcements by your bank and if you are not happy … CONTACT US and we will be more than happy to negotiate with the bank on your behalf.