SMSF Finance

[sydprop]

Hi All,

Five year fixed rates are around 6% with the majors - I think I saw some reference to mainstream lenders going forward with SMSF loans over the last week - any tips?

Preferably with no personal guarantees....

Cheers

sp

 

[Shahin_Afarin]

Most mainstream lenders offer SMSF loans however most are extremely uncompetitive. There is limited competition in the SMSF space with St George, Macquarie and AMP having the most well rounded offerings.

What do you mean by no personal guarantees?

 

[Rolf Latham]

the days of a SMSF loan without trustee guarantees are gone

ta

rolf

 

[Aaron_C]

As Shahin said the big 3 are St George, Macquarie and AMP for residential SMSF loans. There are a few others on the fringe but they are pretty pricey.

 

[Shahin_Afarin]

I should note that SMSF lending has come a long way in the past few years but still has a long way to go. The problem with the majors is that they treat SMSF loans like commercial loans which = big big big upfront fees and ridiculously long turnaround items and a whole bunch of numnuts that have no clue on SMSF lending.

 

[Aaron_C]

Shahin - fair to say I think the main issue is the legal side of things since for the most part the SMSF deal is pretty much the same as a normal residential one. I don't know if that will ever really go away over time but I certainly hope so.

 

[Shahin_Afarin]

What do you specifically mean by the legal side of things? Do you mean the documentation involved or something else?

 

[Aaron_C]

What do you specifically mean by the legal side of things? Do you mean the documentation involved or something else?

Yeah you know the legal review of the deed plus the extra regulatory burden with SMSF loans (use of trustee power, trustee duties etc) which is not present with normal resi loans through normal trusts/companies/natural persons.

 

[Shahin_Afarin]

Yes but thats not at assessment - thats the legal boy and gals. Im talking about the nuckleheads at assessment. I spoke to an assessor last month that didn't know the difference between the SMSF Trustee and the Custodian Trustee.

This other time at band camp the assessor at St George thought the Custodian should be provided at the time of a pre approval.

 

[Aaron_C]

This other time at band camp the assessor at St George thought the Custodian should be provided at the time of a pre approval.

I think you answered it there and then