Changes in the marketplace is a continual process with lenders adjusting their loan offerings. The latest is the announcement that major lender Westpac that it intends to streamline it’s product offering so it will remove SMSF Investment Property Loans from sale and no longer permit business lending to an SMSF’s (“Self-Managed Super Funds”) for residential and commercial securities.
The move means that Westpac, and its subsidiaries Bank of Melbourne, St George Bank and BankSA, will no longer offer the product from 31 July 2018. Furthermore, existing Westpac SMSF clients will not be able to switch from principal and interest repayment structures to interest only, and they won’t be able to extend interest only terms
Currently, the (Westpac) SMSF Investment Property Loan enables Australian residents with an establish (or soon-to-be established SMSF) to use their super to borrower between $200,000 and $2 million to purchase residential investment property in Australia.
SMSF Lending solutions still available
Cashflow Recovery has on its panel of approved lenders a number approved Bank and non bank lenders who will still offer funding solutions to Residential and Commercial SMSF Borrowers.
Typically loan amounts that can be borrowed range from $100,000 to $5m with Loan to valuation (“LVR”) up to 75% for Residential and 70% for Commercial and 60% off the plan purchases. Terms of 30 years for residential and 25 years for Commercial are common with generous serviceability standards. Other SMSF Lending options are available in the marketplace.
Additionally Non-Bank lenders have different SMSF existing asset requirement, liquidity rules and servicing requirements than banks so devising a solution for SMSF funds becomes easier to provide. After assessing a clients requirements we will work to find a solution that meets their needs.
Cashflow Recovery often works with Accountants, lawyers, Financial Planners and to arrange suitable financing solutions for their clients, via its Partner Program. Additionally, Cashflow Recovery helps trustees of Self Managed Super funds arrange finance to purchase investment properties and individuals to arrange finance for their particular personal and business needs. We work with each client to find a solution.
SMSF Emergency Helpline
We welcome all enquiries from Self Managed Super funds and borrowers for assistance