My best mate is looking to buy property in an smsf. I am looking for a mortgage broker who has plenty of expierence in this area and knows which banks offer what in this area. I don't care where the broker is located.
Mortgage broker smsf
- Thread starter pickle pickle
- Start date
Is it for resi or commercial?
If its commercial then a few lenders have virtually the same offering.
If its resi then your friend will benefit immensely from an offset which only a handful of lenders provide (AMP, St George/BOM and The Rock) of which St George is my personal pick based on a few reasons (if servicing is short and you need to use personal contributions then AMP needs historical evidence of payments whereas St George will just take it).
The reason for this is because lenders do not allow for equity releases within SMSF lending so its crucial to go IO w/ linked offset and accumulate all the principle payments in the offset.
If its the 2nd or 3rd or 4th IP within the SMSF and offset is not required then Macquarie is the front runner due to their rate/fee combo.
If its commercial then a few lenders have virtually the same offering.
If its resi then your friend will benefit immensely from an offset which only a handful of lenders provide (AMP, St George/BOM and The Rock) of which St George is my personal pick based on a few reasons (if servicing is short and you need to use personal contributions then AMP needs historical evidence of payments whereas St George will just take it).
The reason for this is because lenders do not allow for equity releases within SMSF lending so its crucial to go IO w/ linked offset and accumulate all the principle payments in the offset.
If its the 2nd or 3rd or 4th IP within the SMSF and offset is not required then Macquarie is the front runner due to their rate/fee combo.
Great information.
It is fantastic when a poster provides valuable information rather than deliberately making it sound more daunting than it actually is so it appears the OP would be crazy not to use them to guide them through the minefield.
Sometimes people just need the info as they are committed elsewhere, sometimes they will use the service of the expert responding to post, the forum is so much better when experts share the knowledge for all rather than just try and secure a client. i hope Shahin is rewarded for the excellent content he provides,
Nice work
Interesting....
I have 2 IPs in SMSF, 2 loans and 2 offsets with St George, so does it mean it was unnecessary to create 2 offset accounts, one was sufficient?
Also, have been pre-approved for 3 IP also with ST George, so I do not need a new offset?
From what you suggested, my understanding would be to have 2 loans with 1 offset in St George, and for the new 3rd loan to go with Macquarie with no additional offset? Is that correct?
Or is the reasoning behind further IPs depleting any surplus, but what if you have more cash or deposited each year as SG, the maximum amount?
Interesting....
I have 2 IPs in SMSF, 2 loans and 2 offsets with St George, so does it mean it was unnecessary to create 2 offset accounts, one was sufficient?
Also, have been pre-approved for 3 IP also with ST George, so I do not need a new offset?
From what you suggested, my understanding would be to have 2 loans with 1 offset in St George, and for the new 3rd loan to go with Macquarie with no additional offset? Is that correct?
Or is the reasoning behind further IPs depleting any surplus, but what if you have more cash or deposited each year as SG, the maximum amount?
depends how much you have in the offset account, if you have or plan to have more than the loan balance on the first one then you need another one for the next property as well, keep in mind things change, you may sell one property or sell other assets thus changing your requirements also
Similar to non SMSF loans you only need 1 offset unless you have more cash than loan balance. There is no need to segregate rents from each property into different accounts.
I too would generally suggest St George for SMSF with an IO loan term of 15 years. Legislation prevents a SMSF trustee from borrowing against the property after the purchase so no equity release.
I too would generally suggest St George for SMSF with an IO loan term of 15 years. Legislation prevents a SMSF trustee from borrowing against the property after the purchase so no equity release.
Interesting....
I have 2 IPs in SMSF, 2 loans and 2 offsets with St George, so does it mean it was unnecessary to create 2 offset accounts, one was sufficient?
Also, have been pre-approved for 3 IP also with ST George, so I do not need a new offset?
From what you suggested, my understanding would be to have 2 loans with 1 offset in St George, and for the new 3rd loan to go with Macquarie with no additional offset? Is that correct?
Or is the reasoning behind further IPs depleting any surplus, but what if you have more cash or deposited each year as SG, the maximum amount?
Not necessarily. It all depends on how much you have in your offset.
To use an example, say you have a loan of 2mil with an offset that has a balance of $10,000 and you are contributing a minimum amount per month. Then its unlikely you will "fill up" your $2mil offset anytime soon.
In another example, you may have a loan of $300,000 and have $280,000 sitting in the offset and you are going to hit the $300,000 in your offset very soon - its clear that you will need another offset for the next loan.
This is very similar to the non SMSF world where investors may need multiple offsets (which is why I'm a fan of lenders that allow for multiple offsets) and some may not. It all depends on how much you have sitting in your offset, how many properties you plan to purchase and how quickly you are accumulating the funds in the current offset.
Thank you all.
After reading this I realised two offsets were created since I had cash to purchase, basically I had more cash than the 2 loans.
Then went and bought last year using offset for cash as opportunity arouse.
So now I have preapproval for new loan but I probably do not require the new offset as surplus would be deposited into two other offsets.
Sorry for being so slow, but these offsets accounts are only new to me and in our SMSF.
So for other entities I now understand why only one offset may be required!
After reading this I realised two offsets were created since I had cash to purchase, basically I had more cash than the 2 loans.
Then went and bought last year using offset for cash as opportunity arouse.
So now I have preapproval for new loan but I probably do not require the new offset as surplus would be deposited into two other offsets.
Sorry for being so slow, but these offsets accounts are only new to me and in our SMSF.
So for other entities I now understand why only one offset may be required!
insider trading
but there is some counterintuitive weird stuff, like CBA going gimme all the HDTs u can..........for us old legacy HDT folk thats magic noise.
ta
rolf
insider trading
but there is some counterintuitive weird stuff, like CBA going gimme all the HDTs u can..........for us old legacy HDT folk thats magic noise.
ta
rolf
Hey Rolf, what HDT stand for?
Regards,
Clint
Lets be real - NAB were never competing properly in SMSF space. Their offering was mediocre at best, untrained SMSF credit team, confined product and a dart board style turnaround time system.
The only reason CBA is still offering it is most likely because the poor existing CBA customers who don't know any better take up the business banking product and get slugged pretty high rates.
The only reason CBA is still offering it is most likely because the poor existing CBA customers who don't know any better take up the business banking product and get slugged pretty high rates.
NAB's SMSF product was a joke - they had an internal legal team who would just make things difficult for clients, and after dealing with them you surely would not go back for seconds and at least $2100 for the experience. They are the only lender where we cannot contact lawyers direct to resolve issues - instead you are dealing with a business banker. I always tried to go to NAB as a last resort.
St George / BOM and Latrobe are the leaders, with Westpac close behind.
Interesting timing to withdraw the SMSF product I agree, I do hope rash decisions are not made on SMSF lending - definitely needs more time to consider the responses from Industry bodies which just closed in March.
St George / BOM and Latrobe are the leaders, with Westpac close behind.
Interesting timing to withdraw the SMSF product I agree, I do hope rash decisions are not made on SMSF lending - definitely needs more time to consider the responses from Industry bodies which just closed in March.
