All Topics / Finance / Affect of SMSF super loan on personal servicability?

Viewing 4 posts - 1 through 4 (of 4 total)
  • Profile photo of bjsaustbjsaust
    Participant
    @bjsaust
    Join Date: 2009
    Post Count: 141
    June 22, 2011 - 1:26 am

    I just wondered if anyone had any knowledge about this.

    I'm in the progress of refinancing my home, to split it into PPOR amount and a LOC split account to eventually be used for investment purposes. At the moment I only have the one property (PPOR) in my name, but a year or so ago setup our SMSF and a bare trust to purchase a block of flats via the whole installment warrent thing.

    As part of the credit check for the new loan, the lender noticed we had two directorships and asked about them, so I explained their purpose (corporate trustee for SMSF and separate corporate trustee for the bare trust used to purchase property on the SMSFs behalf). Their initial response was to ask for a letter stating that neither corporation had any loans, but of course the trustee for the bare trust does have a loan, and we're directors of that corporation.

    So after that long description, I'm just wondering if that affects our serviceability on our personal home loan? If (as we intend to do), we setup a third corporation to be trustee for family trust, will that affect serviceability calcs on loans through it?

    I have a feeling the answer will be "depends on the lender", but just wondering if anyones had experience with it.

    Profile photo of Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099
    June 22, 2011 - 1:51 am

    Hi,

    Common question.

    Short answer – yes it does affect your personal serviceability. As you need to declare all asset and liabilities you hold :
    1. Personally
    2. As a guarantee/ guarantor

    Trust and company falls into the 2nd slot.

    But as mentioned, there are some lenders that will ignore a trust’s asset and liabilities if your overall personal case is strong and your under a certain age etc..

    But the real question is,is your serviceability really tight???

    Regards
    Michael

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
    Email Me | Phone Me

    Same Banks. Better Rates. Served With a Passion.

    Profile photo of bjsaustbjsaust
    Participant
    @bjsaust
    Join Date: 2009
    Post Count: 141
    June 22, 2011 - 2:35 am

    No, I wouldn't have thought so. Rough figures from their online calculator shows we could borrow almost twice what I'm asking for the refinance (i.e., just off our personal incomes and debts). I guess this was just more wondering going forward whether I needed to take it into account when working things out.

    Profile photo of Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099
    June 22, 2011 - 2:37 am

    I would not reply on an bank’s online calculator
    1. it’s not updated…ANZ one is like Nov 2010 :(
    2. It’s alwasy “better” compared to when you apply for the real thing….i guess they make you feel happy and once your sucked in it’s to late
    3. It does not allow for more complex situations

    Either speak to a broker or a bank manager and get them to give you the updated calculations based on your personal situation.

    Regards
    Michael

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
    Email Me | Phone Me

    Same Banks. Better Rates. Served With a Passion.

Viewing 4 posts - 1 through 4 (of 4 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.