The number of lenders offering loans to Self-Managed Super Funds (SMSF) has just gotten smaller. A major lender in the space has announced that they will stop offering new loans to SMSFs after the 20th of October and will restrict the options to existing borrowers.
AMP has announced that they will no longer be providing loans to SMSF, following in Westpac and CBA’s decision to also withdraw support for SMSF lending. Westpac’s decision to stop offering SMSF loans came into effect on the 31st June and CBA isn’t too far off with their updated policy coming into effect on the 12th of October.
Many lenders are looking at “de-risking” their loan books – especially in light of the royal commission. The industry continues to evolve rapidly, which demonstrates why it is important to have an understanding of the current lending market.
It’s important to note… just because something was possible a few years (or even a few months) ago, doesn’t mean that it is possible in today’s market.
It’s not just new customers that could be affected by AMP’s changes – existing customers will also have restrictions applied. From November, existing AMP SMSF borrowers will not be able:
The biggest banks left in the self-managed super fund lending space are Macquarie, Bendigo Bank and Bank of Queensland. As always, it’s important to engage a professional to advise you on the most appropriate lending partner to help you achieve your property goals. Not all brokers deal with SMSFs – for example, our team currently do not advise on SMSF loans – so be sure to ask whether your broker has the necessary knowledge and experience to help you navigate the complex environment of SMSF lending.
Whilst we don’t directly deal with SMSF loans, we have carefully vetted lending professionals that do. If you would like an introduction to one of our preferred partners, just let us know.
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