All Topics / Finance / SMSF loan interest rates

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of bjsaustbjsaust
    Participant
    @bjsaust
    Join Date: 2009
    Post Count: 141
    July 9, 2012 - 2:38 am

    Hi, I'm just wondering if there's much competition in interest rates for SMSF loans. When I first took out my loan there wasn't really, so I'm now paying 6.8% from St George. I'm paying 5.82% for my PPoR and investment loan outside of super (different lender). I'm wondering if its worthwhile trying to refinance the SMSF loan (if thats possible, haven't looked into it yet).

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271
    July 9, 2012 - 5:12 am
    bjsaust wrote:
    Hi, I'm just wondering if there's much competition in interest rates for SMSF loans. When I first took out my loan there wasn't really, so I'm now paying 6.8% from St George. I'm paying 5.82% for my PPoR and investment loan outside of super (different lender). I'm wondering if its worthwhile trying to refinance the SMSF loan (if thats possible, haven't looked into it yet).

    Hi Bjsaust,

    SMSF loans are priced higher than traditional loans. Generally speaking I would stay stick with St George as their SMSF loans are very competitive. Liberty Finance is particularly good if you are setting up a brand new loan.

    Shahin Afarin – Property Finance Consultant
    http://elitepropertyfinance.wordpress.com/

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
    Email Me | Phone Me

    Residential and Commercial Brokerage

    Profile photo of bjsaustbjsaust
    Participant
    @bjsaust
    Join Date: 2009
    Post Count: 141
    July 9, 2012 - 6:05 am

    Ok. Thanks very much for the reply :).

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    July 9, 2012 - 10:53 am

    You can refinance a SMSF loan, but St George is a good one as you don't have to provide a personal guarantee.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    July 9, 2012 - 7:27 pm

    Also The Dragon is one of the only SMSF lenders that offer a offset account which can be very useful.

    We do a fair amount with SGB with their SMSF product and they do certainly have their underwriting pecularities.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of bjsaustbjsaust
    Participant
    @bjsaust
    Join Date: 2009
    Post Count: 141
    July 11, 2012 - 12:01 pm

    Thanks. I know they were popular back when I set it up, but I also noticed that banks have reduced LVR maxes for SMSF loans since then (did need 30% deposit, I gather now 20% is more common), so I'd hoped they'd also gotten more flexible with rates.

    I don't have the offset account setup, but its not a bad idea. I'm only getting about 3.5% on my cash acct for SMSF.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    July 11, 2012 - 1:07 pm

    Yes it is a very useful tool for SMSF investors.

    We had a SMSF deal approved today and the client insisted on an offset account so he could maximise his SMSF return on the property.
     
    As i mentioned not too many lenders offering such a product.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

Viewing 7 posts - 1 through 7 (of 7 total)

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