SMSF Lending - 80% LVR for RIPs?

Hi there,

Are there any lenders going to 80% LVR for SMSF lends for residential property?

Thanks,

JIT
 
Best we have used is The Dragon at 72, with no personal guarantees to boot.

Many many SMSF borrowers dont understand the impact of them taking on a guarantee in regard to the contingent liability that many lenders may saddle them with.

If you are still youngish and want to do more borrowing in your own, or vehicles other than the SMSF, the guarantee provided to the SMSF can dilute your borrow cap by a LOT


ta
rolf
 
Hi Rolf,

Do NAB require personal guarantees? NAB have been suggested as the financier for our SMSF due them not having a minimum loan size...

These guys reckon they can negotiate out the personal guarantee clause in some instances:

http://www.smsfloan.com.au/PersonalGuarantees.php

SMSF Loans said:
We have a number of lenders who either don’t require personal guarantees or who we can negotiate with to waive the requirement, subject to the specifics of your application and scenario. SMSF Loans has been successful in negotiating a number of concessions from lenders under circumstances where customers of that very lender have been subjected to strict application of bank policy.

They also say they can get to 80% LVR on a case by case basis.
 
Last edited:
If you are still youngish and want to do more borrowing in your own, or vehicles other than the SMSF, the guarantee provided to the SMSF can dilute your borrow cap by a LOT


ta
rolf

Yes, will definitely avoid personal guarantees. Thanks.
 
Hi JIT

NAB will want a guarantee.

You can get a limited recourse loan with any lender for an SMSF that does SMSF loans. If your SMSFs deemed cashflow, and deemed life and therefore entity serviceability is great and long, AND the lvr is loooooooooooow, they may let you get away without the personal guarantee.

As usual, many of the lenders dont really care how their product may fit your personal circumstances and future.

Choose Wisely.

ta
rof
 
These guys reckon they can negotiate out the personal guarantee clause in some instances:

http://www.smsfloan.com.au/PersonalGuarantees.php.

No, they can not



They also say they can get to 80% LVR on a case by case basis.

They can't either. Unless there are some other conditions that won't be impossible to agree on.

I'm using their services for my IP loan under SMSF. I can say they have being very professional I know what their stuff. I'm doing it through the Dragon at 72% LVR. That's the max LVR I could get and with no personal guarantees. My solicitor explained that personal guarantees risk putting the SMSF in no compliance. Also, they go against personal serviceability for future personal purchases.
 
Hiya Agent

I believe the non compliance issue with regard to personal guarantees has recently been put aside by the regulator ?

Still if u are under 55 as a general rule, id avoid guarantees to such a vehicle if at all possible.

ta
rolf
 
Hi there,

Are there any lenders going to 80% LVR for SMSF lends for residential property?

Thanks,

JIT

There is only one SMSF lender doing 80% and thats CBA (SuperGear) however their terms/conditions are very rough to meet and yes they do require personal guarantees however will waive them if LVR is less than 50%.

Conditions include;

Minimum loan Amount $200,000
SMSF must have at least $300,000 in net assts
SMSF must have a corporate trustee as opposed to individuals

Current rate (variable 7.99%) is also not very competitive
 
St George to introduce PG

STG will be introducing a Personal Guarantee from next week. Looks like every SMSF product will require a PG now.

How do the set up costs and DEF's compare?
 
STG will be introducing a Personal Guarantee from next week. Looks like every SMSF product will require a PG now.

How do the set up costs and DEF's compare?

Hi Euro

I also heard that St George were looking at introducing guarantees following I'm guessing pressure from big brother (Westpac) however its not clear what the guarantee will actually cover nor whether it will be a requirment for low (eg <50%) LVR deals.

St George set up fees for residential deals are Application Fee $,1500-, settlement fee $100- and legals $615-.

DEF is 1.75% within first 4 years.
 
The impression m getting from reading these forums is that St George is the preferred lender for a SMSF product. Does anyone have a contrary view?

Cheers
 
hi euro
simple answer is yes
there is a couple of other ways of funding smsf that are not part of this post because its asking about a particular loan amount
the answer to the question is being answered in this post but the if the question was how can I fund a property purchase using a smsf and can I borrow 105% of the cost then the answer would be very different.
borrowing funding and investing via a smsf is very specialist and for me is not for a board as it depends how the fund is setup
what is the fund is it 2 people is it 4 people
is it looking at resi or comm
what is the aim of the fund and what is the aim of the owner of the fund.
even what the goals of the fund
now if some oen is going to start posting that then the answers are going to be very different.
there are alot of funders for smsf but it does depend what you want and no i don't peddle any of them.
I do have a couple of entities that do them but they do them as a structure and there is alot more then just open and account
but thats not this post.
 
The impression m getting from reading these forums is that St George is the preferred lender for a SMSF product. Does anyone have a contrary view?

Cheers

Being the PG an issue, I couldn't find any other better than StG. BTW, settlement should be next week (fingers crossed).
 
Top