SMSF commercial property loan

Discussion in 'Loans & Mortgage Brokers' started by SA-Investor, 13th Jun, 2020.

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  1. SA-Investor

    SA-Investor Active Member

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    Can anyone give me an indication of what rate to expect from a commercial investment loan
    - property value anywhere from 500-700 with a LVR somewhere 70-80, but also could be <70% or even 65% depending on the property if these numbers change things.

    And how difficult/long that process would be once a SMSF is established?

    TIA
     
    SA-Investor, 13th Jun, 2020
    #1
  2. Richard Taylor

    Richard Taylor Well-Known Member

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    SMSF Commercial is going to be slightly higher than a similar Resi product.

    Likely to top out at circa 70% lvr and the paperwork will be more extreme than your usual home loan but in all in all not difficult.

    Expect to pay in the 6's for Comm SMSF.

    Cheers


    Yours in Finance
     
    Richard Taylor, 14th Jun, 2020
    #2
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  3. SA-Investor

    SA-Investor Active Member

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    Thanks Richard.
    Does the rate reduce the lower the LVR? and how much would that vary?
     
    SA-Investor, 14th Jun, 2020
    #3
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    You will also be dipping another few $000 for the valuation and same again for legals to review the trust deed etc.
     
    Scott No Mates, 14th Jun, 2020
    #4
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    JUst in the process of getting one away at 55 % lend sub 6 %. lender will go to 70 but the rate is high 6s, though adjusts to the lower rate once paid down to the lower lvr rates bottoming out at mid 5s.

    ta
    rolf
     
    Rolf Latham, 14th Jun, 2020
    #5
  6. Richard Taylor

    Richard Taylor Well-Known Member

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    Yes it can do with certain lenders.

    Cheers
     
    Richard Taylor, 14th Jun, 2020
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  7. Sujay_Gulwadi

    Sujay_Gulwadi Active Member

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    Liberty Finance does SMSF loans for commercial property at 70% LVR at 6.04% comparison rate. I have found them very easy to deal with.
     
    Sujay_Gulwadi, 16th Jun, 2020
    #7
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