SMSF borrowing gets tougher for Westpac customers

SMSF borrowing gets tougher for Westpac customers
SMSF borrowing gets tougher for Westpac customers

Westpac is cutting lending to self-managed super funds for residential investment properties, according to the Australian Financial Review.

The bank has cut maximum loan-to-value ratios from 80 to 70% and tightened other lending criteria.

Super fund borrowing has increased from less than $500 million to more than $9 billion, the Australian Taxation Office says over the past five years.

The recent financial system inquiry warned that current growth rates could create a systemic risk in the future, even though total borrowing was small compared to the overall economy.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

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