SMSF Bank Account

Hi,

I'd like to know whether do we need to be picky of which bank that we used for the bank account?Is it better big 4?

What am I trying to do now is to rollover our super to a SMSF bank account then later we are going to use this money as deposit for buying a property through loan and all the remaining money will be used for shares trading

What is the requirement to open a SMSF bank account?Will it take long?

Cheers
 
Hi,

I'd like to know whether do we need to be picky of which bank that we used for the bank account?Is it better big 4?

What am I trying to do now is to rollover our super to a SMSF bank account then later we are going to use this money as deposit for buying a property through loan and all the remaining money will be used for shares trading

What is the requirement to open a SMSF bank account?Will it take long?

Cheers

Consider opening the account with a bank who you may possibly go with for the SMSF loan (depending on interest rates).

You will need the trust deed, company registration etc - just take your company folder and the SMSF trust folder. Don't allow them to keep any of your documents though.
 
Hi,

I'd like to know whether do we need to be picky of which bank that we used for the bank account?Is it better big 4?

What am I trying to do now is to rollover our super to a SMSF bank account then later we are going to use this money as deposit for buying a property through loan and all the remaining money will be used for shares trading

What is the requirement to open a SMSF bank account?Will it take long?

Cheers

Bank account opening will depend if you are a new customer to the bank. If you have an existing account with a bank, you would already have passed the 100 points identity check i.e passport and drivers license. If you have passed this generally you need to provide:
- signed trust deed (may need to be certified)
- certificate of incorporation if corporate trustee
- original signed application form

If you are trading, all bank have a platform (we let clients choose which bank they want an account with for this reason) and look at cost per trade.

If you are not ready for a property purchase and you will be taking out a loan, then you can have a preference for a bank however, your broker will choose the cheapest rate out there for SMSF deals. For us, many of our clients are using La Trobe and Liberty over the last 3 months.

Only difference between Big 4 and 2nd tier is price.....as I say Liberty and La Trobe have low rates and waive application fees.

Hope that helps

Cheers, Ivan
 
If you are considering a SMSF loan one bank is generally above others in the deals I have facilitated. And its not a Big 4.

STG is owned by Westpac and has a SMSF loan with max 80% LVR (RESI) and doesnt seek guarantees from Directors. Their parent Westpac doesnt follow this view and its LVR can be a touch less. One of the the big 4 doesnt yet do SMSF loans - ANZ. They see it as a risk still and havent finalised a policy. STG does require that contributions also go into their accounts. I havent recently seen what CBA are doing but their early product was appalling. I have never seen a deal with NAB.

Maybe discuss your options with a mortgage broker. The market for SMSF ending is continuing to evolve and some fringe banks are competitive. A broker familiar with a SMSF lend will know all the issues and hold your hand.

Just dont expect a cheap deal. They all see risks and compliance concerns and these concerns are expressed in fees charges and high rates.

A SMSF bank account can be opended same day. Note that to do a rollover you may be asked for a letter on letterhead from the bank which confirms the BSB and acct no. (They also ask for a statement which you wont have for some time !!) Ask your branch when you open the account in case you need it later. Retail and industry funds are subject to a lot on vetting to ensure super remains preserved and its subject to early release fraud. And ensure you correctly provide ID for the rollover requests...Industry funds love to hang onto $$ and not release it.
 
Hi,

I'd like to know whether do we need to be picky of which bank that we used for the bank account?Is it better big 4?

What am I trying to do now is to rollover our super to a SMSF bank account then later we are going to use this money as deposit for buying a property through loan and all the remaining money will be used for shares trading

What is the requirement to open a SMSF bank account?Will it take long?

Cheers
You'll need to provide the SMSF details (ACN notification from ATO), trustee details - also ACN (if corporate trustee) and the trust deed. Best done via a visit to the branch.

If you know who where you'll be lending the money from, it may help to go with them. If you're not worried, then if you go to a smaller bank, or one of the online banks such as ING, they will do it fee-free. Last time I looked, the majors all charged a monthly account keeping fee. My super fund is with CUA - no fees ever.
 
You'll need to provide the SMSF details (ACN notification from ATO), trustee details - also ACN (if corporate trustee) and the trust deed. Best done via a visit to the branch.

If you know who where you'll be lending the money from, it may help to go with them. If you're not worried, then if you go to a smaller bank, or one of the online banks such as ING, they will do it fee-free. Last time I looked, the majors all charged a monthly account keeping fee. My super fund is with CUA - no fees ever.

Hi there, what does CUA stand for?
 
STG is owned by Westpac and has a SMSF loan with max 80% LVR (RESI) and doesnt seek guarantees from Directors.

they do want the guarantees these days

I agree with you though on the balance of the product, especially the offset.......its good, but the service is blech

ta
rolf
 
I agree with you though on the balance of the product, especially the offset.......its good, but the service is blech

There not that bad (as long as you are not caller 101) if you take the time to figure out the riddle of the dragon. Im almost there.

Offset is a great option for SMSF lending as the balance of the fund can be placed in there.

If you ask your MB to request a reduction in the set up fee, currently $1500, the dragon will cut it in half for you.

The SMSF assessors at St G are a good bunch from my experience.
 
@FMS

I thought regardless we still need to start with the SMSF account so we can rolled our money into that SMSF account. After that then we can use that money for the home loan right?once the home loan is established then the offset will be created - depending on the product

if you have the offset, can the contribution be made directly to the offset?without going through the SMSF account?
 
@FMS

I thought regardless we still need to start with the SMSF account so we can rolled our money into that SMSF account. After that then we can use that money for the home loan right?once the home loan is established then the offset will be created - depending on the product

if you have the offset, can the contribution be made directly to the offset?without going through the SMSF account?

You will need to roll over your super to your SMSF before you can access it. You need to set up the trustee and the trust etc before you could open a SMSF bank account.

Also think about the need to pay a 10% deposit. It will take time for your superfund to process the transfer and the fund won't be able to pay a deposit until it gets the money in its bank account so factor this in.
 
@Terry_W
to rollover the super to the SMSF, I need to open bank account right?Bank account need trustee and trust (which I have done), I'm not really in rush in getting the property as soon as possible. I'll start when the fund is already rollover to the SMSF account. Do you have any idea how long does it take for the rollover?
 
@Terry_W
to rollover the super to the SMSF, I need to open bank account right?Bank account need trustee and trust (which I have done), I'm not really in rush in getting the property as soon as possible. I'll start when the fund is already rollover to the SMSF account. Do you have any idea how long does it take for the rollover?

Yes you will need a bank account, and usually a certificate of compliance for the rollover to proceed. Rollover should take 5 business days and request EFT. This will depend on the fund you are currently with there are always delays. They is a blog on my site on how to complete a rollover. I won't provide the link here, however if you cant find it let me know.

Again, try for EFT, industry funds lose half the cheques they write
 
There not that bad (as long as you are not caller 101) if you take the time to figure out the riddle of the dragon. Im almost there.

Offset is a great option for SMSF lending as the balance of the fund can be placed in there.

If you ask your MB to request a reduction in the set up fee, currently $1500, the dragon will cut it in half for you.

The SMSF assessors at St G are a good bunch from my experience.

I have had a poor customer experience at ST G (through Bank of Melbourne). 2 loans both resulted in penalty interest for my clients. What I did not like was that there was no 'control' over the settlement team, no one could contact them and the bloody mortgage docs were sent to the wrong address. Again, this was through bank of Melbourne, however, it will be a while before I use them again.

FMS, re set up fees, are you you referring to the loan app fee? We are having these waived on most of our deals. Can share if we are on the same page? C

Cheers, Ivan
 
FMS, re set up fees, are you you referring to the loan app fee? We are having these waived on most of our deals. Can share if we are on the same page?
Cheers, Ivan

Yes, application fee. Thanks for letting me know Ivan.

I had Homeside send docs to the last Broker just the other day. Not good.
 
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