SMSF lend - any bank who will waive "financial advice" clause

Hi all,
To the brokers out there.

Do you know of any banks which are willing to do a refinance on a SMSF loan , and do not require the "financial advice" clause?
I am wanting to take advantage of the current low 5 year fixed rates....

I went to Westpac two weeks ago asking to transfer some loans to them. But they advised I needed to spend close to $3,000 to see one of their financial planners (get a plan , then sign the financial advice clause). With the establishment costs I was looking at around 5k to transfer two loans.
I thought this was too excessive just to refinance two small loans .
The current loan is with NAB - and they don't do fixed 5 year loans on the SMSF loan product I am using....
David
 
G'day Perky,

When was your first arrangement entered into i.e was it entered into after July 2010? If yes, then refinance is allowed (sorry i'm an accountant) in which case I believe Macquarie is a good option.

Their rates will be around 5.8% from memory.

La Trobe Financial does refinance and up to 70% the rate is 5.6%. Liberty and First Mac may be two others which I am pretty sure are options.

They are the ones that come to mind on the refinance side (which are limited for our clients).

Hope that helps

Cheers, Ivan
 
Hi Redwood,
Around 2009 from memory is my 1st loan - the other one is from 2011.
The NAB loan from 2009 I have is at 5.88% currently - I was after a bank which could do 5 years fixed at or around 4.99% if possible.
David
 
No need to go to a Westpac planner for sign off. Westpac will even allow others to sign off if they are RG146 qualified, but not licenced - a person would be crazy to sign off in this case, but I am sure many do.
 
Why on earth are you refinancing to westpac and why not refinance to a lender that is going to offer an offset and keep it variable?

Refinancing is expensive for SMSF loans so don't rush it.

Also is it a commercial or residential property?
 
Off topic a little but interesting nonetheless....

"despite hype about SMSFs allocating significant funds to real estate investments, "SMSFs on average have 15 per cent in unlisted property and, of that, all but 3 per cent is in commercial property that is mostly the premises on which SMSF trustees' businesses are operating".

http://esuperfund.com.au/articles/s...tent=pa04_062014&utm_campaign=outbrain_062014

The most interesting thing is that since the ATO started publishing data on asset allocations within SMSF's several years ago, the percentage of assets held as residential investment property has barely moved from the 3% range.

So much for SMSF's being responsible for driving prices up.....
 
Off topic a little but interesting nonetheless....

"despite hype about SMSFs allocating significant funds to real estate investments, "SMSFs on average have 15 per cent in unlisted property and, of that, all but 3 per cent is in commercial property that is mostly the premises on which SMSF trustees' businesses are operating".

http://esuperfund.com.au/articles/s...tent=pa04_062014&utm_campaign=outbrain_062014

The most interesting thing is that since the ATO started publishing data on asset allocations within SMSF's several years ago, the percentage of assets held as residential investment property has barely moved from the 3% range.

So much for SMSF's being responsible for driving prices up.....

It depends which ATO data you look at. APRA and ATO have numerous stats available. The returns lodged data is often very detailed but 2 years out of date.
 
Why on earth are you refinancing to westpac and why not refinance to a lender that is going to offer an offset and keep it variable?

Refinancing is expensive for SMSF loans so don't rush it.

Also is it a commercial or residential property?

Refinancing is VERY expensive and the compliance costs must be replicated as the new lender will seek to verify that the original lend was compliant with SIS and still is. I would avoid haste.
 
confused with LVR on refinance lend.

When refinancing to another Lender, does the new Lender lend based on new valuation?

it is said that you can't top up when you property has increased in value.

Say you took out a recourse loan with AMP, 5 years later the property has increased from $400k to now $600k. can you refinance to Macquarie, and they will lend you 80% of the $600k?, or $400k
 
A work colleague used Westpac, and I used AMP for SMSF purchase. I recalled when we compare the loan application cost, he was higher. I think this is because it was mandatory to use Westpac financial/legal advise and they charge $3k. Whereas AMP I have to get my legal and financial advise. I was able to get financial advise from my Accountant that cost me $200.

One good thing about AMP is it has offset for a variable.

Westpac 5 Year fixed @ 5% for SMSF?? Can any broker here confirm correct? I thought the SMSF are mostly 1% higher..

What is the lowest variable, 3 year and 5 year SMSF today?
 
It depends which ATO data you look at. APRA and ATO have numerous stats available. The returns lodged data is often very detailed but 2 years out of date.

These tables appear to be current to June 2013...

https://www.ato.gov.au/About-ATO/Re...statistical-report---June-2013/?page=2#Tables

In any event, this data certainly appears to identify a pretty simple trend ;

June 2008 - residential real property represented $10,631,000,000 from a total SMSF asset base of $320,080,000,000 or 3.32% of assets

June 2009 - residential real property represented $11,533,000,000 from a total SMSF asset base of $321,936,000,000 or 3.58% of assets

June 2010 - residential real property represented $13,169,000,000 from a total SMSF asset base of $357,676,000,000 or 3.68% of assets

June 2011 - residential real property represented $14,677,000,000 from a total SMSF asset base of $408,950,000,000 or 3.59% of assets

June 2012 - residential real property represented $15,859,000,000 from a total SMSF asset base of $438,122,000,000 or 3.62% of assets

June 2013 - residential real property represented $17,509,000,000 from a total SMSF asset base of $505,542,000,000 or 3.46% of assets


As a proportion of all SMSF assets, resi property has barely moved in 6 years. ( 3.32% in June 2008. 3.46% in June 2013)

And as a dollar value, the value of resi property assets has moved from $10,631,000,000 in 2008 to $17,509,000,000 in 2013, which represents @ 64.7% growth in "dollar value" . But at the same time as total SMSF assets have grown from $320,080,000,000 in 2008 to $505,542,000,000 in 2013 - approx 57.94% growth.


When the June 2014 data is published it may start to tell a slightly different story, but until then, it is very hard to make any argument that SMSF's are driving the resi property market at all. The SMSF resi property "story" appears to be just puffing along, same modest rate of growth year in, year out. Resi property within SMSF's is not really attracting any greater share of asset allocation than it has ever attracted ...
 
Why on earth are you refinancing to westpac and why not refinance to a lender that is going to offer an offset and keep it variable?

Refinancing is expensive for SMSF loans so don't rush it.

Also is it a commercial or residential property?

Hi,
My current loan with NAB has this in place , and I am paying 5.88%.
When I approached my Westpac manager, she advised that she thought the 4.99% 5 year fixed was possible - but has not confirmed it as yet.

If I was able to put my 2 loans at that rate , it would save me around 3k per year in interest.

I am still working out if its actually worth doing at this point in time...
If the 5 year fixed truly is 5.54% , then I won't bother.
David
 
I find when you have savings in the offset it often far outweighs the fixed interest rate savings which charge fees to take up the offer. Each time I look at doing this for my two loans, one with st George and one with amp, I sit on my hands and fix neither. I must look at it twice a year and each time come to the same conclusion the $$ charged outweigh the offset benefit with variable
 
I am still working out if its actually worth doing at this point in time...
If the 5 year fixed truly is 5.54% , then I won't bother.
David

When a lender with a single policy suite and pricing card doesnt know their stuff in an area, its usually because they are new ( and there is semi excuseable) or they dont do much work in the area they are advising.

4.99 fixed on a 5 yr limited recourse loan would be nice, real nice

ta
rolf
 
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