Loans.com.au offers first SMSF loan

Loans.com.au 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.

Loans.com.au 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

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