Vincents Lending Solutions – Considerations for 2022
Here are some items you may wish to consider in 2022:
SME Recovery Loan Scheme Has Been Extended
On Monday 13 December 2021, the Federal Government announced a 6-month extension to the scheme until 30 June 2022. The Scheme is designed to support the economic recovery and provide continued assistance to SME’s dealing with the economic impacts of COVID. This is particularly relevant for SME owners who are looking to purchase new commercial assets, property or require a debt consolidation process.
Key features business owners should be aware of are:
- Lenders are allowed to offer borrowers a repayment holiday of up to 24 months.
- Loans can be used for a broad range of business purposes, including investment support.
- Loans may be used to refinance any pre‑existing debt of an eligible borrower, including those from the SME Guarantee Scheme.
- Borrowers can access up to $5 million in total, in addition to the Phase 1 and Phase 2 loan limits.
- Loans are for terms of up to 10 years, with an optional repayment holiday period.
- Loans can be either unsecured or secured (excluding residential property).
The current iteration of the scheme which allows the Government to Guarantee up to 80% of a loan is available until the 31 December 2021, however with lender cut-off dates having already lapsed it is likely applicants will need to wait until after 1 January 2022. At this point the scheme will continue in a reduced capacity with the Government offering up to a 50% Guarantee on loans. We are currently fielding all enquiries from SME owners to discuss their eligibility to qualify for the Scheme. If you would like to discuss whether or not your business can access the Scheme, please do not hesitate to contact the VLS Team.
Simplified Lease Doc Lending to Benefit Investors
The introduction of simplified lease doc products moving into the new year will provide significant benefit to new and existing clients looking to invest in the residential complexes and commercial property market. New policy arrangements will mean that applying for a lease doc loan will require an assessment of the rental income and the tenant as the main criteria of the application. Investors can save time by no longer needing to produce tax returns in the new reduced documentation process. This is also pertinent for business owners and individuals who have suffered from any negative financial impacts of the COVID pandemic, where said business statements might not be a reflection of the strength of the business. We have been advising clients and fielding enquiries in regards to eligibility for the new product, if you would like to begin discussions, please contact the VLS Team.
Up to 4,600 First Home Buyer Guarantees Back up for Grabs!
Want to buy your first home with a deposit of just 5% and pay no lenders’ mortgage insurance? You could be in luck – the federal government will soon reissue up to 4,651 unused Home Guarantee Scheme spots. First home buyers who use the Home Guarantee Scheme fast track their property purchase by 4 to 4.5 years on average, because the scheme means they don’t have to save the standard 20% deposit. The government usually issues spots in the scheme once a year (July 1), but this time it’s reissuing guarantees that went begging earlier. So where are these extra spots coming from? The government states the scheme will reissue “up to” 4,651 unused guarantees for first home buyers from the 2020-21 financial year.” It adds many of the spots have been unused because of COVID disruptions, but it’s unclear exactly how many guarantees will be made available. It’s also unclear exactly when the spots will be reissued, with the government entity overseeing the scheme – the NHFIC – saying it’s working with its panel lenders and “looks forward to reissuing unused guarantees soon.” All in all, that means we’re going to have pretty short notice of when these spots officially become available to apply for, and they could be in short supply. So if the guarantee is something you’re interested in, you’ll want to get in touch with us today so we’re ready to act when the spots do drop.
Read the full article here.
New Year, New Opportunities: A Unique Fixed Loan with an Offset Account
A fantastic opportunity for first home buyers and owner occupiers looking to refinance has presented itself for the new year. We are able to offer access to a unique product through our aggregator Connective, which is a fully transactional 100% offset account available on fixed rates. The product can be utilised by individuals or companies/trusts for both owner occupied and investment properties. The ability to have a corresponding offset account on a fixed rate is something rarely seen in the loan market. However, what makes this product even more attractive is that the fixed rates begin at 2.19%, which is at the forefront of market competitiveness. Further, there is no restrictions on offset contributions along with fee free eftpos/internet banking transactions. We are currently discussing this product with our first home buyer clients and existing mortgage holders who have not reviewed their finance arrangements in over 6-months to a year. If this product is of any interest to you or you fit the above categories please do not hesitate to contact us for more information and discuss your eligibility.
Phil and the Team at Vincents Lending Solutions have now completed 2 mortgages for me, including one refinance. On each occasion the VLS service has been First Class. The responsiveness,... read more
The team at VLS, they took the time to understand our position, and provide us with a number of different options available in a very timely manner. They explained options in... read more
Phil and his Lending Solutions Team provided a high quality professional service that was really helpful and informative in any questions I had. Would 100% recommend them to anyone seeking... read more