Financially affected by COVID -19? Communicate with your Bank as help is there

Our recent enquiries reveal that a number of Australian banks are preparing to provide a range of financial assistance measures designed to help Australian consumers and businesses during the COVID-19 outbreak. These measures may be available to customers immediately and likely to remain in place for customers who are financially affected by the COVID-19 outbreak.

Feedback from the four banks we’ve spoken to date indicated that Home Loan and Business Loan Customers affected by COVID-19 may receive financial assistance in one form or another, including:

• Deferral of payments for up to 3 months;
• Extension of lending term of up to 3 months;
• Deferral of Equipment Finance payments for a period of time on a case by case basis;
• Fee free redraws;
• Lending can be restructured without establishment fees;
• Access to term deposit funds without reduction in interest rate and break fees; and
• Access to credit card limit increases.

We anticipate that there will be a high level of demand for assistance from the Banking system as the impact of COVID-19 is prolonged and Banks will also be operating in the new COVID-19 business environment.

We recommend that if you foresee financial difficulty in your business, it is best to act early by:

• Assessing the likely impact of your personal or business situation:
  • How, when and why will you be impacted;
  • What plans do you have in place to combat that; and
  • What support do you anticipate needing from the Bank to assist during the crisis.
• Arming yourself with this information:
  • Contact your business banker for Business Loans; and
  • Call the Bank’s contact centre and speak with a Home Loan Specialist.

If you would like assistance in this regard, please contact your usual Mazars adviser or one of our specialists on the details below:

 Published: 18 March 2020

Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.

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