Any luck getting a lower rate for SMSF loan

Discussion in 'Superannuation, SMSF & Personal Insurance' started by snoopy, 1st Apr, 2020.

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  1. snoopy

    snoopy Well-Known Member

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    I have a smsf loan with St George and they increased the rates when most lenders pulled out of lending to smsf 9 months or so ago

    Anyways has anyone had any reductions recently with the cost of funds declining so much
     
    snoopy, 1st Apr, 2020
    #1
  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Lmfao. Good luck in the SMSF space. It will be harder and harder. No govt subsidies and ...risk. I would have little surprise if it became a unviable product now. At best it will be like searching for unicorn poop
     
    Paul@PAS, 2nd Apr, 2020
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  3. JohnPropChat

    JohnPropChat Well-Known Member

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    Have one with LaTrobe, they passed on between 15 basis points to 25 basis points in the last 3 of 4 rate cuts. The emergency rate cut wasn't passed on (for variable products) by many Banks. Not a recommendation, just stating what I know.

    SMSF refinance is an expensive process, plenty of niche players and each with their own issues.

    A lot depends on current rate, current LVR, offset account or not and so on.
     
    JohnPropChat, 2nd Apr, 2020
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  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    resi or commercial ?

    ta
    rolf
     
    Rolf Latham, 2nd Apr, 2020
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  5. snoopy

    snoopy Well-Known Member

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    I received a 1.25% reduction after asking very nicely and the bank recognised their cost of funds has reduced significantly :)

    it’s multiple units on 1 tittle so the loan is commercial
     
    snoopy, 7th Apr, 2020
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  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    diff animal, there is still plenty of lenders doing SMSF for comm, so wider options whereas resi is pretty much non bank these days, and incumbent funders know it


    ta
    rolf
     
    Rolf Latham, 7th Apr, 2020
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  7. MoneyMan

    MoneyMan Well-Known Member

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    The lender we use, colombus, with a reasonably low rate of 5 or so percent will be stopping new lending by the 17th April.this is for residential loans.
     
    MoneyMan, 8th Apr, 2020
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  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    ANZ warehouse funds I recall ?

    ta
    rolf
     
    Rolf Latham, 8th Apr, 2020
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  9. Redwood

    Redwood Well-Known Member

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    What is the rate you have with Westpac? there are non bank lenders, however i'd estimate at least $3k in refinance costs when measuring the cost v benefit when comparing rates.

    Cheers Ivan
     
    Redwood, 8th Apr, 2020
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  10. MoneyMan

    MoneyMan Well-Known Member

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    Not too sure, we got told today the lender is not taking on anymore new loans effective immediately
     
    MoneyMan, 8th Apr, 2020
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  11. JohnPropChat

    JohnPropChat Well-Known Member

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    Columbus unearths new market with $250m non-resident bond deal

    Columbus Capital and its banker syndicate - arranged by Credit Suisse and including MUFG, Natixis, Standard Chartered and Westpac - wrapped up the unique deal late on Friday, after spending about a fortnight in front of potential investors.

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    JohnPropChat, 8th Apr, 2020
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  12. JohnPropChat

    JohnPropChat Well-Known Member

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    What LVR? Resi or commercial?
     
    JohnPropChat, 8th Apr, 2020
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  13. MoneyMan

    MoneyMan Well-Known Member

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    For a resi, possibly a 60% LVR, not too sure
     
    MoneyMan, 9th Apr, 2020
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