NAB launch SMSF lending

[Cozzie]

G'day everyone,
Iv'e just joined this forum,what a wonderful tool.
I've decided to set up my own smsf and am looking at purchasing the commercial industrial premises from my landlord.Iv'e spoken to NAB and their rate is 10.83% but the loan term is 15 years P/I only.I'm looking for a slightly longer term or possibly I/O for a period so as to not strain my business cashflow.I agree that NAB is probably a better deal than Westpac but the term is somewhat short.

The Commonwealth bank has advised that their new smsf product will be released this month, but I may not have the time to wait to see it and their details are a bit light on at the moment.
Does anyone know any other lenders with good deals.I'm looking to borrow $715000, which will be 65% of the valuation.Your right about getting info on these products,it's like pulling teeth.
Regards
Cozzie

 

[Pat]

Hi Cozzie,

The Banks vary in their requirements but NAB are the best as mentioned by MikeF and Pete. They can be a bit restrictive in some parts of their product but it also depends which branch/area of the NAB you go through and how strong your financial position as to what rate they will lend at.

Don't hold for the CBA because you don't want to be one of their guinea pigs, this SMSF lending is new and Westpac and NAB now have a few months experience and have ironed out some teething problems.

 

[perky29]

Hi Cozzie,

The Banks vary in their requirements but NAB are the best as mentioned by MikeF and Pete. They can be a bit restrictive in some parts of their product but it also depends which branch/area of the NAB you go through and how strong your financial position as to what rate they will lend at.

Don't hold for the CBA because you don't want to be one of their guinea pigs, this SMSF lending is new and Westpac and NAB now have a few months experience and have ironed out some teething problems.

Not quite with NAB but getting closer.
I think in a month or so (after mine gets through) they will iron out there issues - especially with the amount of grief that MikeF on my behalf is giving to the NAB top line managers. On ya Mike

 

[Trying2Learn]

Our application will have been in NAB for 4 weeks this Monday (SMSF Loan)coming and still no word good or bad !

Do you think it could be a good sign ? Surely if it was a NO they would have told us before now don't you think ?

 

[SMSFLending.com]

Hi all ... I work closely with the NTAA (National Tax & Accountants Association) and have personally written and settled over 40 SMSF loans in the last 12 months. I not only arrange finance, but also assist clients with establishing the structure behind the loan, viz:-

- Property/Bare Trusts;
- Corporate Trustee/s;
- New SMSF's;
- Deed of Variation to an existing SMSF.

This is most cetainly an 'evolving product' with many potential traps along the way.

Two of the biggest mistakes/errors I find people making are:-

1. Signing the contract of sale prior to establishing the Property/Bare Trust.

This will potentially create issues once there is an attempt to transfer the property to the benficial owner, the SMSF. In essence the day you signed the contract of sale, 'ABC Pty Ltd ATF the ABC Property Trust' - there was NO property trust in place! - think about it.

2. The deposit NOT being paid directly from the SMSF.

Many people (beneficiaries) are paying the deposit themselves, to be re-imbursed by the SMSF prior to or post settlement. If the deposit is paid in this manner, this would be construed as a 'personal contribution' by the member and in breach of the SIS act.

Also, I can not stress enough the importance that the Property/Bare Trust document is prepared by a qulafied person with legal oversight, or even better yet, prpeared by a sloicitor. If this document does not contain the necessary inclusions, you might as well throw your money down the drain!

I pay around $1,100 dollars (far cheaper than DBA Butler or Gadens Lawyers) - who all want to charge between $2,500 & $5,000).

If you feel I may be able to assist you, let me know.

PS. I have been successful in obtainig a 80% residential LVR for an SMSF loan through the NAB - must have a very stront net asset backing.

Cheers!

Vic
ph. 0431 777 151
[email protected]

 

[newtoinv]

SMSF ? What does this stand for? I find it hard to keep up with the abbreviations you all use on here

 

[Raddles]

Hi there
self managed super fund - is what is being referred to
thanks

 

[kum yin lau]

Hi, any suggestions what to do with 3 titles [commercial, fully leased] in my personal name, unencumbered. One's been transferred to SMSF last year to take advantage of the 100K deduction.

Another title [3 tenants] is currently offered as collateral for a loan. I'll use the greater part to buy shares in the SMSF

Serviceability is a bit of a problem, that's why I've always gone to private lenders.

I seem to be eternally seeking funding.

KY

 

[ILoveProperty]

1. Signing the contract of sale prior to establishing the Property/Bare Trust.

This will potentially create issues once there is an attempt to transfer the property to the benficial owner, the SMSF. In essence the day you signed the contract of sale, 'ABC Pty Ltd ATF the ABC Property Trust' - there was NO property trust in place! - think about it.

I've bought a property, signing it to "me and/or nominee", then set up a unit trust and the unit trust settling on the property.

Is this an option here?

 

[SMSFLending.com]

I belive so.

The '& or nominee' is useful so long as you take the necessary steps prior to settlement to nominate another 'entity' as the purchaser, i.e. nomination form/stat dec.

What I am referring to are people who HAVE settled with the dates out of wack ... then become unstuck in 15 years when they attempt to transfer the property to the beneficial owner (SMSF).

Too late then I am afraid.

Hope this helps.

 

[Trying2Learn]

Small Rant !

Do you really really want a SMSF loan and if you do are you wanting to be completly stuffed around, go around and around in circles while spending more money well NAB is the way to go....

I am sure our MB will never do another of these loans again !

 

[BV]

Can someone please give us an update on current interest rates?
Have they been coming down in line with residential loans?

cheers

 

[Qlds007]

NAB - 6.74% through the right Commercial office.

 

[BV]

NAB - 6.74% through the right Commercial office.

Richard
Thanks, is this a standard NAB rate or an introductory one which will change to standard variable later on?
Do they also offer fixed loans and is there a minimum borrowing amount for fixed and variable?
Cheers

 

[Qlds007]

This is the Base rate variable loan so only changes with movements in official interest rates.

Never done a fixed rate under this product as they are done as Commercial loans using Residential security but i am sure they offer fixed rates just couldnt tell you what the rates are off the top of my head..

Normal min loan is $150K.

 

[SMSFLending.com]

hey all!

Residential purchase, $380k approved today - indicative 3 year fixed 7.15%, still ~ 100bps above the standard resi rate however still reasonably 'cheap money' nonetheless.

Re: issues encountered obtaining approval from the NAB, persoally had no issues, perhaps it is a case of the office you are dealing with.

I have a very close contact in Victoria who overseas all of my submissions, I know he will handle interstate transactions without the need to refer to a local office .... very handy indeed!

If anyone is interested in making contact with this person, feel free to drop me a line with your contact details - [email protected]


Cheers.

 

[MikeF]

Residential SMSF Loan Rates

Can someone please give us an update on current interest rates?
Have they been coming down in line with residential loans?

cheers

Current variable interest rates for residential security are;

Bankwest 8.89%
NAB 6.74%
PowerSuper 7.85%
St George 8.44%
Westpac 8.84%

Fixed Rates
NAB
1 year 5.39%
2 year 5.49%
3 year 6.09%
4 year 6.49%
5 year 6.49%
10 year 7.09%

St George
1 Year 7.39 %
2 Year 7.34 %
3 Year 7.14 %
4 Year 7.34 %
5 Year 7.39 %

PowerSuper
1 Year 6.5%
2 Year 7.05%
3 Year 7.55%

 

[MJD]

Current variable interest rates for residential security are;

Bankwest 8.89%
NAB 6.74%
PowerSuper 7.85%
St George 8.12%
Westpac 8.84%

Fixed Rates
NAB
1 year 5.39%
2 year 5.49%
3 year 6.09%
4 year 6.49%
5 year 6.49%
10 year 7.09%

St George
1 Year 7.39 %
2 Year 7.34 %
3 Year 7.14 %
4 Year 7.34 %
5 Year 7.39 %

PowerSuper
1 Year 6.5%
2 Year 7.05%
3 Year 7.55%

does fix rate apply to smsf loan, I've got one smsf loan with NAb and was advised that they don't do fix loan on smsf, just want to get second opinion to confirm
thanks
mj

 

[MikeF]

MJ
Whilst I haven't been asked to do a fixed rate SMSF loan yet my NAB contact says that fixed rates are available.
NAB's resi SMSF loan is simply their standard tailored mortgage product (without discount) and fixed rates quoted earlier are those straight off NAB's website

 

[Qlds007]

On the NAB ones i have done they have always advised me that the fixed rates are their Com Fixed Rates and are normally 1 % higher.

Hence we use the 6.74% base rate product.