offers first SMSF loan is now offering loans for self-managed super funds in a bid to capture part of the growing market.

Its SMSF loans offers an interest rate of 4.99% (5.04% comparison rate) – 1% cheaper than the equivalent offered by Westpac.

Upfront fees on properties of less than $1 million include a $600 legal bill, a $150 settlement and a $220 valuation.

The loan is available for residential investment property refinances and purchases up to 80% LVR. managing director Marie Mortimer says the SMSF they treat SMSF loans the same as normal residential property loans, with lenders’ mortgage insurance paid by the lender.

“Banks give SMSF loans a different capital weighting because they consider them to be commercial loans,” Mortimer says.

“We don't have a capital weighting on SMSF loans so it’s a normal mortgage deal with the risk spread across our mortgage portfolio rather than a riskier commercial portfolio.''

Government bodies have recently being sounding warnings about growing debt in the SMSF sector.

Both the Reserve Bank and the government have hinted at a crackdown on the self-managed superannuation sector, with both entities saying they are concerned about the number of property investments being made in the industry.

Alistair Walsh

Alistair Walsh

Deutsche Welle online reporter

Community Discussion

Be the first one to comment on this article
What would you like to say about this project?