SMSF Resi Finance lender help needed!!

[GreyGhost]

Hi guys,

I have a client who is purchasing a residential property in their SMSF.
80% lend.
Purchase of $770K
Lend $616K
SMSF more than 2 years old
Property is not OTP or newly built.

Can any brokers out their give me any advice on available lenders who would be an option to put this deal through.

I've got:
AMP 5.5% with approx. $1800 of fees
Liberty 5.49% with approx. $900 of fees
AFM 5.24%

Not really my first choice of lenders... AMP may be okay.

NAB are ceasing SMSF lending as of 30/05.
Suncorp are only dealing with existing clients....
Resimac only do up to $500K lend...


Any advice is much appreciated guys..

 

[Mick C]

Hi guys,

I have a client who is purchasing a residential property in their SMSF.
80% lend.
Purchase of $770K
Lend $616K
SMSF more than 2 years old
Property is not OTP or newly built.

Can any brokers out their give me any advice on lenders..

I've got:
AMP 5.5% with approx. $1800 of fees
Liberty 5.49% with approx. $900 of fees
AFM 5.24%

Not really my first choice of lenders... AMP may be okay.

NAB are ceasing SMSF lending as of 30/05.
Suncorp are only dealing with existing clients....
Resimac only do up to $500K lend...


Any advice is much appreciated guys..

Advice on what? lol the details provided is so basic i dont even know what your after/requirements.

 

[Shahin_Afarin]

Why wouldn't you use St George and utilise their offset facility which is oh so important within an SMSF considering you cannot do equity releases?

Their rate isn't sharp @ 5.54% but the offset feature makes up for this.

The only thing is that you will need to have a 10% buffer in the SMSF.

If he/she doesn't want the offset for whatever reason then we use Macquarie as the "cheap" lender - their rate is 5.35% and they do SMSF well. They too have the 10% buffer rule though.

 

[GreyGhost]

Advice on what? lol the details provided is so basic i dont even know what your after/requirements.

Don't know what's 'LOL" about the post.

Just asking what possible lenders could I possibly try put the deal through.

 

[GreyGhost]

Why wouldn't you use St George and utilise their offset facility which is oh so important within an SMSF considering you cannot do equity releases?

Their rate isn't sharp @ 5.54% but the offset feature makes up for this.

The only thing is that you will need to have a 10% buffer in the SMSF.

If he/she doesn't want the offset for whatever reason then we use Macquarie as the "cheap" lender - their rate is 5.35% and they do SMSF well. They too have the 10% buffer rule though.

Thank you for your reply.
Cash is not an issue in this fund, they will have much more than 10% remaining.

I have done 5 commercial SMSF deal but no resi, so excuse my limited knowledge of preferable lenders

 

[Mick C]

I've got:
AMP 5.5% with approx. $1800 of fees
Liberty 5.49% with approx. $900 of fees
AFM 5.24%

Liberty - they can drop the fee down to $300...just need to ask.
AMP - OK lender for SMSF.
AFM- It's a "re-wrap" of other lender...not sure which one as i dont use AFm..

St George - Good for their offset + Cheap fix rate ( Lowest)..but no offset for fixed

Macq- Decent variable rate + Ok set up cost of around $1,200

La trobe - Similar to St George....but set up a lot more costly...$2,500 +

 

[GreyGhost]

Liberty - they can drop the fee down to $300...just need to ask.
AMP - OK lender for SMSF.
AFM- It's a "re-wrap" of other lender...not sure which one as i dont use AFm..

St George - Good for their offset + Cheap fix rate ( Lowest)..but no offset for fixed

Macq- Decent variable rate + Ok set up cost of around $1,200

La trobe - Similar to St George....but set up a lot more costly...$2,500 +

Thanks for your help

 

[Mick C]

Don't know what's 'LOL" about the post.

Just asking what possible lenders could I possibly try put the deal through.

When you write a post with no substance and ask for advice ...all we can give you is a "list of lenders" but a goggle search can give you that answer...there's absolutely no advice when a list is given....

No point suggesting a lender when the client might not be eligible or the features they are after are not all there etc.....

 

[GreyGhost]

When you write a post with no substance and ask for advice ...all we can give you is a "list of lenders" but a goggle search can give you that answer...there's absolutely no advice when a list is given....

No point suggesting a lender when the client might not be eligible or the features they are after are not all there etc.....

Correct.
That is what I was after at this stage Mick, more than happy to navigate the eligibility of each lender myself.

Thanks again

 

[mja]

I used St George back in 2010 for my SMSF loan, but they didn't have an offset facility back then (that I was aware of). I wonder how easy or hard it would be to set up after the fact...

Loan is about $61k but cash in offset would be $75k.

 

[Marty McDonald]

Correct.
That is what I was after at this stage Mick, more than happy to navigate the eligibility of each lender myself.

Thanks again

You got a credit license or a credit rep grey ghost? Just saying...I know your an accountant but legally you shouldn't be advising on individual loans you may be over stepping the mark a bit.

 

[Terry_w]

St G is my choice for first lender for a SMSF - because of the offset account.

 

[GreyGhost]

You got a credit license or a credit rep grey ghost? Just saying...I know your an accountant but legally you shouldn't be advising on individual loans you may be over stepping the mark a bit.

Yes I have credit rep licence.

 

[MIW]

St G is my choice for first lender for a SMSF - because of the offset account.

+1. 2 loans + 2 offsets with them, very handy!
Also, have pre-approval for 3rd SMSF loan! I doubt I will be buying anything in Sydney though! Will see.....

 

[Redwood]

Hi there,

Given its an established property you have more options.

La Trobe will not do a 80% lend unless special approval obtained and the rate will be 6.99%.

Bank of Mel may be your best bet at 5.45% with offset, given the value of the purchase you will need to meet their serviceability and also 10% liquidity requirement.

Macquarie is an option at 5.35% - they are generally tough on serviceability but you can do the calc up front.

You can try Firstmac but 80% @4.99% requires LMI.Low on fees with legal review in house.

Due to Canstar, State Custodians gets a rap at 5.1% but not for me.

I'd go BOM followed by Macquarie.

Many clients are attracted by 5 year fixed so you can check rates on fixed too.

Remember to get the bare trust done up front....

Cheers Ivan

 

[baby blue eyes]

I used St George back in 2010 for my SMSF loan, but they didn't have an offset facility back then (that I was aware of). I wonder how easy or hard it would be to set up after the fact...

Loan is about $61k but cash in offset would be $75k.

I set my loan up a st George loan - settlement was sep 2010 with offset. The fees are I think an extra 5 bucks a month, well and truly paid for by interest savings and better than fixed rate savings with decent amount of funds in offset.

Amp were ok too with offset there as well. Don't think there are more fees for the offset facility there.