Following a disruptive 2020 it's time to take an overview of the lending scenario for 2021. We're not in the market for making predictions per se, but encapsulating what's on offer and how you can access personal loans and business vehicle finance for a wide range of purposes. We've even included a handy list of diary dates and reminders to keep you on track through 2021.
Changes to Consumer Credit Laws
In a pre-2020/21 budget announcement, the federal government announced proposed changes to consumer credit laws. The changes were identified to simplify accessing credit, especially home loans, to increase the flow of credit into the economy. The changes are flagged to come into effect in April 2021 but the stakeholder consultation process is still underway and there is push-back from some sectors. We covered the detail of these changes in an article, so please check our library for details.
Interest Rate Prospects
Interest rates are at historic low levels as a result of the RBA’s decisions in 2020 to cut the official cash rate twice as part of their policies to stimulate the economy to counter the effects of COVID-19. Most economic analysts expect rates to remain low but it will dependent on global economic conditions and Australian GDP and unemployment figures as to how the RBA board will go in terms of further changes.
In terms of Jade Finance loans, with the exception of some unsecured personal loans, our major finance and loan categories are negotiated at a fixed interest rate. So any loans arranged through Jade at fixed interest rates will not change as a result of changes by the RBA to the official cash rate.
You can lock in a loan now at a fixed rate and your rate and repayments will remain at those levels through the loan term.
Personal Loan Options
Our Secured Loan remains the preferred option for most consumer purchases such as cars, bikes, boats and caravans. Our rates remain highly competitive across these sectors as you can see on our lender comparison calculators.
If you’re planning a purchase, use our calculators for repayment estimates to make those all-important choices over different makes and models.
Alternative to a Pay Rise
Slow wage growth has been a dominant feature of the Australian economy for some time. If you’re an employee and you’re thinking of asking for a pay rise this year, why not consider an alternative – Novated Car Leasing with Salary Sacrificing. Yes it does involve sacrificing part of your wages but there are benefits to both employee and employer. Read all the details on our web page or speak with one of our consultants about how this could work for you.
Business Finance Options
Instant Asset Write-Off was the catch-cry of 2020 as car dealers, manufacturers and yes, lenders such as Jade, continually reminded buyers of this tax measure to encourage business. Accelerated asset depreciation via temporary full expensing is still available through this financial year and beyond to some eligible businesses. Check out updates at www.ato.gov.au
Our range of commercial finance facilities remains unchanged for 2021 with leasing, rent to own, CHP and Chattel Mortgage all available along with our specialised business finance products.
Insurance and CTP
When taking out finance, lenders will require you to also take out insurance. If you are looking for a policy on a new car, boat, bike, truck, caravan or equipment it’s smart to shop around. The insurance market, especially cars, is highly competitive and there are many providers. But read the policy details closely so you know what you’re getting.
New Business Finance Options
COVID-19 has caused many people to rethink and reimagine their working life and many have moved to setting up their own businesses either as a full-time operation or to supplement their income. New businesses can find sourcing finance a challenge but Jade can assist with ABN Car Finance and Low Docs Vehicle loans available across our portfolio.
Tax Incentives and Grants
Many wage earners received tax cuts from November 2020 and more should be in line to receive theirs after 1 July. The government has also presented businesses with a range of measures with IAWO and other policies. Some of these are still in play so check out what you may be entitled to at ATO.gov.au.
Interest is focussed on whether or not the government will announce any further targeted packages for sectors such as hospitality and tourism in the wake of the announcement that international travel borders will remain closed for 2021.
State governments are also offering grants at different times so stay connected to your relevant state department for updates and offers.
Calendar Call-Outs
- End to JobKeeper in March
- April – proposed changes to change consumer credit laws come into effect.
- May – Federal and state budgets. Will there be more relief offered?
- June – tax time and EOFY sales – be ready with a pre-approved Jade loan.
- Renewals – keep an eye on when your driver licence, car rego, boat licence, caravan rego and other annual renewals are due and pay on time to prevent penalties.
- New car model releases will be happening throughout the year.
- Full schedule of caravan and outdoor shows is set, refer to caravan industry sites for details.
Stay connected with Jade Finance for free access to our loan calculators and lender comparisons and informative articles, tips and advice.
To discuss your loans and finance needs, contact Jade Finance Call 1300 000 008
DISCLAIMER: THE CONTENT IN THIS ARTICLE IS PREPARED SOLELY FOR GENERAL INFORMATIONAL PURPOSES. THIS CONTENT IS NOT PROVIDED AS FINANCIAL ADVICE. IF YOU REQUIRE ADVICE AROUND YOUR PERSONAL FINANCIAL SITUATION IT IS RECOMMENDED THAT YOU CONSULT WITH A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED IN REGARD TO ERRORS OR MIS-REPRESENTATION OF CONTENT AS IT PERTAINS TO GOVERNMENT MEASURES AND POLICIES, PRODUCTS SPECS AND DETAILS AND OTHER DATA AS SOURCE VIA THIRD PARTIES.
