Liberty SMSF loans experience.

Discussion in 'Loans & Mortgage Brokers' started by icic, 20th Jun, 2017.

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  1. icic

    icic Well-Known Member

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    Hey guys, looks like liberty has SMSF loan product and the rate is not too bad comparing to the other major institutions. anyone used them before?

    Home Loans - Liberty SuperCredit
     
    icic, 20th Jun, 2017
    #1
  2. tobe

    tobe Well-Known Member

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    Yep. No more painful than other smsf loan providers.

    Which is very painful btw.
     
    tobe, 20th Jun, 2017
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  3. Corey Batt

    Corey Batt Well-Known Member

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    They're reasonable - good servicing calc compared to some of the others and policy.

    No offset account, but dependent on your overall portfolio in the SMSF you may be investing the remaining funds into other assets in any case.
     
    Corey Batt, 20th Jun, 2017
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  4. dabbler

    dabbler Well-Known Member

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    I would not trust or look to Liberty al all if rate and fees are important, they have shown that even in good times they are willing to hike rates and fees in a way no other that I know has done.
     
    dabbler, 20th Jun, 2017
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  5. Ross Forrester

    Ross Forrester Well-Known Member

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    Holy moly! Why?

    And if everybody else is paying that - why?

    I don't really get borrowing in a smsf with that kind of cost. If it costs more you will get less.
     
    Ross Forrester, 20th Jun, 2017
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  6. Redwood

    Redwood Well-Known Member

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    icic

    Liberty is popular as a lender of last resort. They do limit LVR to off the plan to 60% much like La Trobe. You will need to be very careful, before you settle, they will amend your "bare trust", personally I donot like anyone touching our bare trust and the client needs to understand the amendment before signing. Further, you will need a sign off by a financial planner, this is usually at the last stage and if you did not receive financial advice, you will be scrambling to get this signed off - at a significant cost. Again, read the letter they ask for. I don't like it at all.

    The rate is still high, personally I am getting fed up with the way banks are treating SMSF's and am trying to find a alternative. Why the hell are we paying so much for a trust loan?

    Some recent measures are that 80% is becoming very difficult, a lender we use is CBA-supergear has recently reduced LVR to 70%. We obtain 5.53% with them. St George is 6.53% - which erodes the benefit of the offset and I feel the client experience is poor with them. Looks as though SMSF investors will continue to pay over 6% for the years to come. May be worth looking at a fixed rate.

    Cheers Ivan
     
    Redwood, 21st Jun, 2017
    #6
  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Its strange how some banks just to force people to amend trust deeds to suit them, and even stranger how people just agree and amend the deeds without considering the consequences.
     
    Terry_w, 21st Jun, 2017
    #7