Can I still get an SMSF loan with NAB?

Any general questions you might have in regards to loans and finance.
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Otto Dargan
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Re: How do I apply for a first home owners grant?

Post by Otto Dargan »

Hi Pedro,

Welcome to the forums.

Unfortunately, as of 2018, all of Australia’s largest banks have virtually stopped SMSF financing. These banks include Commonwealth Bank of Australia (CBA), Westpac, ANZ and NAB.

Although the regulators haven’t called for a total ban on SMSF loans, they have introduced tougher lending and capital requirements. This is why NAB, one of the only major banks to still offer commercial property loans for SMSFs made it's lending policy even stricter. NAB requires $5 million in the super fund and a minimum loan size of $1.5 million, so technically they do offer SMSF loans but no one actually qualifies for it.

These policy changes include:
  • Reducing your borrowing limit
  • Requiring more liquid assets and cash reserves in your SMSF prior to purchasing the property and after settlement.
  • Requiring borrowers to be a business loan customer for at least 2 years prior to applying for an SMSF commercial loan.
  • Stopping interest only SMSF loans.
  • A requirement that SMSF members be in the accumulation phase when the loan is funded and for the duration of the loan term.
  • Having a cash reserve of 12 months in their SMSF account.
Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How do I apply for a first home owners grant?

Post by Otto Dargan »

Hey Pedro,

The reason why the banks did this is that SMSF loan applications have always been difficult for major banks to process. Banks tend to have very few credit officers who are experienced in handling these complex ownership structures.

Banks have to also tread carefully to make sure they are following the rules and set up the loan correctly as per the requirements set out under the Superannuation Industry (Supervision) Act 1993 (SIS Act).

Smaller teams mean there can be delays and mistakes when assessing the application.

Basically, the time and effort to get an SMSF loan approved doesn’t justify the return on investment for some banks.

Luckily, we have a couple of second-tier lenders that can help.

Please call us on 1300 889 743 or enquire online and one of our mortgage brokers can help you find a willing lender.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Can I still get an SMSF loan with NAB?

Post by Otto Dargan »

Hey Pedro,

Excellent question!

Rest assured that these smaller lenders we work with are very safe and reliable. And yes, the amount you can borrow from them will remain almost the same.

We can help you to apply for a commercial property SMSF loan where you can borrow up to 70% of the property value.

As you already have a 30% deposit, we can also negotiate on your behalf to get you the lowest interest rate possible.

Call us on 1300 889 743 or complete our free assessment form to speak to a mortgage broker who specialises in SMSF loans and who can get you competitive rates for your home loan application.
Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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