Re: Got knocked back for a Macquarie Bank SMSF loan
Posted: Fri Jul 05, 2019 4:22 pm
Hello Steve. Welcome to the forums.
That’s absolutely right, most major banks have already pulled out SMSF lending with Macquarie bank the last of the majors to exit. However, there are still specialist or non-conforming lenders that are still offering SMSF loans with competitive interest rates. And that’s who we’re working with.
The reason major banks pulled out of SMSF lending is that firstly, SMSF loans are seen as a high reputational risk to some banks in the event that you were to default on your mortgage. These banks want to avoid negative publicity, particularly after a handful of case studies were used as examples in the recent Royal Commission into the banking and financial services industry. Basically, some borrowers were recommended the wrong products and didn’t seek adequate financial advice before purchasing a property for their SMSF.
Also, a lot of people that have a self-managed superannuation fund are not necessarily high net worth individuals, which again relates back to potential negative publicity.
Finally, the reason for lenders pulling out of SMSF lending has to do with the complexity of meeting the regulatory requirements - the return on investment is not worth the risk with some lenders because again, they don’t tend to be large loans.
We specialise in SMSF loans.
Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a SMSF loan.
Cheers,
That’s absolutely right, most major banks have already pulled out SMSF lending with Macquarie bank the last of the majors to exit. However, there are still specialist or non-conforming lenders that are still offering SMSF loans with competitive interest rates. And that’s who we’re working with.
The reason major banks pulled out of SMSF lending is that firstly, SMSF loans are seen as a high reputational risk to some banks in the event that you were to default on your mortgage. These banks want to avoid negative publicity, particularly after a handful of case studies were used as examples in the recent Royal Commission into the banking and financial services industry. Basically, some borrowers were recommended the wrong products and didn’t seek adequate financial advice before purchasing a property for their SMSF.
Also, a lot of people that have a self-managed superannuation fund are not necessarily high net worth individuals, which again relates back to potential negative publicity.
Finally, the reason for lenders pulling out of SMSF lending has to do with the complexity of meeting the regulatory requirements - the return on investment is not worth the risk with some lenders because again, they don’t tend to be large loans.
We specialise in SMSF loans.
Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a SMSF loan.
Cheers,