SMSF Rates with AMP... UP UP UP ... and no more IO allowed

AMP's SMSF Variable Rate is increasing by 0.25% from August 3.

AMP's SMSF Fixed Rates increasing by 0.80% from August 3.

This puts them approximately in line with the other SMSF lenders with an Offset - as of today that means Big Sky ( Big Sky's fixed rates a little cheaper than AMP's new rates - for how long? ) because STG, BoM and BSA are exiting SMSF lending as of today

IO no longer allowed for new customers from August 7. Existing customers can continue to access IO lending. No biggie. Investors should probably be using P&I for SMSF lending anyway... I think so anyway. Best to pay the thing off so you have little or no debt by retirement, and a nice income stream .... Really, property in SMSF should be treated the same as PPOR I think. They're the only 2 assets that can be sold CGT free.

Rural Resi no longer acceptable .No biggie.

 

No wonder my mortgage broker went quiet since telling me 3 weeks ago to transition my SMSF loan to AMP because it was .80 points cheaper!!!

 

The announcement only came out today, so unless your broker had a crystal ball I highly doubt that's why they went quiet, they were acting in your best interest at the time.

 

Westpac/St George exiting the SMSF market was a huge blow for lending in that space. They had wonderful niches other than the offset and its a matter of time before other lenders start taking advantage of the limited competition that exists.

 

You have until August 3 to rate lock it Chris. 5 years 5.89% P&I is great going for SMSF . If you make the payment tomorrow you'll beat the deadline.

 

THANKS @euro73. Unfortunately I am with someone else.... on a day full of appointments already tomorrow ....! Given that I am paying 6.85% and have no offset though, I really need to look into it!

 

You’ve got 3 days . The rate lock is established from when you pay it -so you could still pull it off