How does SMSF work?

Quite the opposite unfortunately, many lenders have used the APRA changes and the myth that SMSFs are causing a property bubble to pull out of the market OR limit LVR.

For instance, NAB withdrew in December due to 'systematic risk' of SMSF lending (cough cough) - their lawyers couldn't even read a trust deed.

ANZ withdrew at a similar time. In response to the APRA changes, AMP has withdrawn their product, a product that is heavily supported by their SMSF Administration business. The rock also withdrew from the SMSF lending space even though they done one loan a week.

Recently St George limited LVR to 70% with a 10% liquidity requirement, La Trobe Financial limited LVR overall to 70% and up'd their rates a little, which meant there are limited lenders that will do a 80% LVR loan, we have one that will do it at 5.12% which is awesome! We have produced a matrix of SMSF loans summarising all the current offerings and loans.

Whats worse some industry back kronies are trying to ban SMSF borrowing! Not gonna happen, the demand for SMSF property and loans is more than even, but yes, SMSF do assist those that can't afford a property in their own name, and may use their super to secure their retirement.

Yes, I love super.

Cheers Ivan

 

Hate to say Somamic with the pressure being imposed by APRA and ASIC concern over SMSF lending the choice of lenders and lvr is being reduced.

Many lenders have pulled out of this area of lending already.

 

Handy to know. Choices are narrowing by the day it seems, and becoming more costly.