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
     
  2. Paul@PFI

    [email protected] Tax Accounting + SMSF 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
     
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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.
     
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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
     
  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
     
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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
     
  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.
     
  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    ANZ warehouse funds I recall ?

    ta
    rolf
     
  9. Redwood

    Redwood Well-Known Member Business 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
     
  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
     
  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.

    The deal, dubbed Vermillion, consisted of seven tranches, each made up of Australian mortgages held by non-resident investors and worth $250 million in total.
     
  12. JohnPropChat

    JohnPropChat Well-Known Member

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    What LVR? Resi or commercial?
     
  13. MoneyMan

    MoneyMan Well-Known Member

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    For a resi, possibly a 60% LVR, not too sure