Re: How do I apply for a first home owners grant?
Posted: Thu Mar 28, 2019 5:44 pm
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:
Otto
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.
Otto