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21.01.2022 LENDER REPORTS "SHARP DROP" IN HARDSHIP APPLICATION By Madison Utley 03 June 2020 A non-bank lender has reported the number of new applications received for COVID-19 related hardship arrangements has fallen faster than the group expected.... According to Firstmac managing director Kim Cannon, a full analysis of the trusts in its $12.8bn loan book have shown the impact of the crisis is not accelerating in the way investors feared at the outset of the pandemic. COVID-19 hardship requests peaked in late March, coinciding with the federal government’s announcement of the JobKeeper package, Cannon said. From that time, new COVID-19 hardship requests have only continued on very low daily increments. The balance as at 31 May 2020 was 5.65%, up only slightly from 5.32% last month. Our trusts can withstand stress levels many times higher than the current levels experienced, he added. The group attributes its successful minimisation of the detrimental impact of COVID-19 to the way its approach to the issue has differed from other lenders’ right from the beginning. From the outset, we worked with each customer individually to help them tailor the best arrangement for their unique circumstances, instead of just ushering them through into a default six-month hardship arrangement, said Cannon. We will continue that tailored approach next month when our three-month hardship arrangements come up for review, working with each person to ensure that they are making whatever level of repayments they are comfortable with, leaving them better off in the long run. Of the 5.65% of customers currently on hardship arrangements, only 1.88% were in 30+ days in arrears as many of the accounts were in advance or making partial payments. Just 56% of the small percentage of customers on harship arrangements have been unable to make any payment during the initial three month period.

20.01.2022 RECORD-LOW RATES TO REMAIN FOR AT LEAST THREE YEARS By Charbel Kadib 06 May 2020 The RBA will keep the cash rate at its record low for the foreseeable future with no improvement in inflation and labour market conditions in sight, according to an analysis.... As widely anticipated, the Reserve Bank of Australia’s (RBA) monetary policy board has held the official cash rate at 0.25 per cent. In a statement released following the decision, RBA governor Philip Lowe reiterated that the central bank would not consider changes to the cash rate until its long-term targets of unemployment and inflation were met. The board will not increase the cash rate target until progress is being made towards full employment, and it is confident that inflation will be sustainably within the 2-3 per cent target band, he said. The RBA is expecting inflation to remain below 2 per cent over the next few years and is expecting the unemployment rate to hit 10 per cent in the coming months before ending 2020 at 7 per cent. As a result, AMP chief economist Shane Oliver said the cash rate would remain on hold for at least the next three years. For those focused on the RBA’s cash rate, the next few years are likely to be pretty boring, he said. The cash rate is at the RBA’s long stated lower bound and there is no value in taking it negative, so it won’t be cut any further. However, governor Lowe said the RBA remains prepared to employ alternative monetary policy measures to support the economy. [The central bank] will maintain its efforts to keep funding costs low in Australia and credit available to households and businesses, he said. The board is committed to do what it can to support jobs, incomes and businesses during this difficult period and to make sure that Australia is well placed for the expected recovery. RBA EXPANDS CAPITAL PROGRAM Accordingly, following the board meeting, governor Lowe announced that the central bank would expand its criteria for repurchase (repo) transactions on the overnight money market. The range of eligible collateral has been broadened to include Australian dollar securities issued by non-banks with an investment grade (IG) credit rating. For long-term corporate debt securities, the minimum IG credit rating has been lowered to BBB-, down from AAA, and from A-1 to A-3 for short-term corporate debt securities. According to Mr Lowe, the revision would assist with the smooth functioning of Australian capital markets. This is the latest of several initiatives announced by the RBA in recent months, aimed at supporting liquidity in the Australian economy in response to market volatility caused by the COVID-19 outbreak. The initiatives included the ramping up of repo transactions in the second half of March after investors rushed to offload securities on the secondary market. Looking for a lower rate? Call us today on 0401 039 039. We are here to help

14.01.2022 GOVERNMENT RELEASES FIRST LIST OF PARTICIPATING LENDERS by Madison Utley20 Apr 2020 Latest News... Government releases first list of participating lenders There are 22 confirmed banks and non-banks offering loans under the Coronavirus SME Guarantee Scheme APRA closes the door on new banks Decision protects both ADIs and consumers and will last at least six months, according to regulator The government has made offers to 34 lenders wishing to participate in the Coronavirus SME Guarantee Scheme to help provide small businesses access to working capital to get through the impacts of the COVID-19 pandemic. Under the scheme, lenders can provide eligible SMEs unsecured loans of up to $250,000 for as long as three-year terms, with no repayments for the first six months. The government guarantees 50% of each loan so the funding can be offered more cheaply and more freely than regular business loans. All lenders with an existing SME business lending line can apply to participate in the scheme, at which point the government and APRA consult on how to move forward. There are no fees for lenders to submit applications or participate in the scheme. Some confirmed lenders, such as Heritage, have clarified the loans provided through the scheme will be available to both new and existing customers. Heritage has always been a bank that specialises in meeting the needs of small businesses. Our Business Banking team is focussed on the SME sector, so we understand how small businesses work and the challenges they face, CEO Peter Lock explained. That’s why we’ve been so keen to offer this new SME Support Loan, which gives small businesses an extra option they can draw on to get through the cashflow issues that the COVID19 has created. We want to help these smaller operators meet the challenges they now face and come out of our current situation in a good position to thrive in future. CALL US TODAY FOR ASSISTANCE TO SECURE YOUR SME FUNDING. Mob: 0401 39 039

10.01.2022 HOME-LENDING BACKDROP TO SLOW SLIDE IN PROPERTY PRICES. By Charbel Kadib 02 April 2020 Low interest rates and mortgage repayment relief measures could insulate residential property prices from a looming plunge in housing market activity, according to CoreLogic....Continue reading

07.01.2022 WHY USE A BROKER? HERE IS WHY. The number of complaints made to AFCA against all brokers have remained insignificant, despite AFCA receiving complaints about credit and loan repayment issues. The Australian Financial Complaints Authority (AFCA) has reported that complaints against brokers comprised less than 2 per cent of all complaints in the 2019-20 financial year....Continue reading