SMSF Loan w/ Offset Account

Robert

I have copied the post from PC

The value of the offset account is underrated, particularly with a high balance fund with cash in the fund at settlement, this can quickly turn your property into positive gearing by reducing your loan interest. Powerful calculation in my opinion.

From the list you have provided (which captures all), each lender has different servicing and LVR as you mentioned. St George/Bom offers 70% LVR with 10% liquidity and tough servicing. Of course we are discussing residential.

AMP has just come back into the market and are feeling the industry once more, their rate is @ 5.87% and require a statement of advice with the loan so please factor that in to the cost of the purchase. Tough servicing to, so not recommended. BOQ does 80% as does Bendigo.

Bank Australia is the old Bank Mecu, they are quite small when it comes to the SMSF market and the SMSF Loan product was introduced by some ex Big Sky staff that transferred across. They do 80 with restrictions. Good guys based in Kew Melbourne.

Big Sky is the pick of the bunch, however their rate has increased this week – due to their off the plan niche and the amount of loans coming from our brokers!

They service inside the SMSF and offer 80% for off the plan and established and also have the offset so your list is right. We are doing a significant amount of business with Big Sky at the moment. With Big Sky – they require a financial advice certificate which is almost like a statement of advice, no planners will sign off on it without $$$, so be sure to be aware of this. Luckily, I can sign it safely, but can cause surprises for punters and brokers alike.

Macquarie, Liberty, Resimac do 80% LVR however no offset. Both Macquarie and Resimac require a min balance of $200k.

To my knowledge their are no others. Great list Robert – there is a list on our site to. Be sure to get the bare trust sorted too.

Cheers Ivan