St George SMSF 70% LVR

Discussion in 'Loans & Mortgage Brokers' started by Shahin_Afarin, 20th Jul, 2015.

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  1. Redwood

    Redwood Well-Known Member

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    Hi mja,

    The rock has pulled out of the SMSF market altogether and were not a player in the first place with only a handful of loans per month.

    There are a couple of non-bank lenders who will do 80%.

    Note with AMP - they do have an offset - however you will require a statement of advice which will be quite costly in most cases (i.e $1000 to $5000).

    Cheers Ivan
     
  2. euro73

    euro73 Well-Known Member Business Member

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    I guess that's just the price that has to be paid to retain the superior structural flexibility offered by an Offset within a LRBA. Beats having to pay 10% CGT at pre pension phase to liquidate funds through a sale, if you want to draw out equity for another purchase or investment :)
     
  3. mja

    mja Well-Known Member

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    My first property in my SMSF was with St George back in 2010. No offset account, 70% LVR. Looks like I've missed the boat with them again.

    Ivan - by statement of advice, do you mean a financial letter that states that the transaction is approved/recommended by a professional (such as an accountant)? If so, I had to provide one of those for St George back in 2010 and my accountant did it for free.
     
  4. Terry_w

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

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    you could always set up an offset account now.
     
  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    We had a client seek a FP sign off for AMP last week. It was worse than the old STG / Westpac sign off which they stopped asking for. It was almost all legal / financial advice in respect of SISA compliance, the bare trust deed itself etc. The only bit that came close to FP advice was in respect of the mortgage and loan and that was legal / credit advice. They ended up saying not to bother.

    Terry - STG seem to be one of few who do offer an offset. The 10% + liquidity in an offset is a decent return. A few clients are using the offset strategy effectively.
     
  6. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    AMP is about to drop their LVR due to the APRA changes - word is its going to be 70%.

    Hoping they don't implement the liquidity test but have a feeling they will.