The ATO's latest Self-managed super fund (SMSF) quarterly statistical report for March 2021 shows more than 6,000 new SMSFs were established in the three months to 31 March, with the total number now sitting at just under 600,000. 

Total estimated SMSF assets increased by 3% over the quarter to $787 billion, and while the most common asset types are still listed shares (26%) and cash or deposits (19%), the biggest increase was seen in property. 

Lender

VariableMore details
Includes NOV RBA Rate Increase
  • Refinance only offer. No application fee and no settlement fee
  • No monthly, annual or ongoing fees
  • Access your SMSF loan via our easy-to-use online app Smart Money
Includes NOV RBA Rate Increase

loans.com.au – SMSF 70

  • Refinance only offer. No application fee and no settlement fee
  • No monthly, annual or ongoing fees
  • Access your SMSF loan via our easy-to-use online app Smart Money
VariableMore details
  • Fully functioning offset.
  • Rapid Refinance available - receive approval in as little as 48hrs
  • 50m2 of beach & coastline cleaned with every loan settled.

WLTH – Ocean SMSF 60 P&I ($50k - $2m)

  • Fully functioning offset.
  • Rapid Refinance available - receive approval in as little as 48hrs
  • 50m2 of beach & coastline cleaned with every loan settled.
VariableMore details

Reduce Home Loans – Capitalizer SMSF 70 Metro

    VariableMore details

    La Trobe Financial – SMSF Residential

      VariableMore details

      Firstmac – SMSF 70 (Refinance Special)

        VariableMore details

        Liberty Financial – Liberty Residential SMSF (LVR < 80%)

          VariableMore details

          Yard – SMSF Loan (Principal and Interest) (LVR < 80%)

            VariableMore details
            • Fully functioning offset.
            • Rapid Refinance available - receive approval in as little as 48hrs
            • 50m2 of beach & coastline cleaned with every loan settled.

            WLTH – Ocean SMSF 80 P&I ($50k - $2m)

            • Fully functioning offset.
            • Rapid Refinance available - receive approval in as little as 48hrs
            • 50m2 of beach & coastline cleaned with every loan settled.
            VariableMore details
            • Fully functioning offset.
            • Rapid Refinance available - receive approval in as little as 48hrs
            • 50m2 of beach & coastline cleaned with every loan settled.

            WLTH – Ocean SMSF 90 P&I ($50k - $1.5m)

            • Fully functioning offset.
            • Rapid Refinance available - receive approval in as little as 48hrs
            • 50m2 of beach & coastline cleaned with every loan settled.
            VariableMore details
            Includes NOV RBA Rate Increase
            • Available for Purchase and Refinance
            • No application fee and no settlement fee
            • No monthly, annual or ongoing fees
            Includes NOV RBA Rate Increase

            loans.com.au – SMSF 80

            • Available for Purchase and Refinance
            • No application fee and no settlement fee
            • No monthly, annual or ongoing fees
            Important Information and Comparison Rate Warning

            Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of December 12, 2023. View disclaimer.


            The total value of real residential property held by SMSFs grew by 6.36% ($2.64 billion) to more than $44.1 billion over the quarter, while limited recourse borrowing arrangements (LRBA) - which are often utilised by SMSFs for investing in property - also rose by 6.36% ($3.55 billion) to $59.4 billion.

            Such loans limit the recourse of the lender, in that the lender can only repossess the asset (e.g. the investment property) purchased through the loan to recoup the debt should the borrower default. This is unlike the typical home loan, where the lender usually has full recourse to go after other assets too, such as cash in the bank or a stock portfolio.      

            Related: What can you invest in with an SMSF? 

            The ATO's data shows LRBA use stayed relatively stagnant over 2020 when the pandemic hit, after increasing in value by more than 10 times from $400 million about a decade ago. 

            This recent increase is also in line with the Australian Bureau of Statistics' (ABS) most recent household lending data, which not only saw new loan approvals hit a new record high in March, but also recorded a substantial increase in investor lending after a 20-year low seen last year.

            Prudential regulator data also shows total superannuation assets increased 3.1% for the quarter and 13.9% over 12 months to a record high of $3.1 trillion.


             Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

            Lender

            VariableMore details
            Online ExclusiveUp To $4K Cashback Includes NOV RBA Rate Increase
            • Immediate cashback upon settlement
            • $2000 for loans up to $700,000
            • $4000 for loans over $700,000
            Online ExclusiveUp To $4K Cashback Includes NOV RBA Rate Increase

            loans.com.au – Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)

            • Immediate cashback upon settlement
            • $2000 for loans up to $700,000
            • $4000 for loans over $700,000
            VariableMore details
            Refinance OnlyApply In Minutes
            • No application or ongoing fees. Annual rate discount
            • Unlimited redraws & additional repayments. LVR <80%
            • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
            Refinance OnlyApply In Minutes

            Unloan – Variable Rate Home Loan – Refinance Only

            • No application or ongoing fees. Annual rate discount
            • Unlimited redraws & additional repayments. LVR <80%
            • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
            VariableMore details
            • Up is 100% owned by Bendigo Bank.
            • Up to 50 offset accounts
            • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)

            Up – Up Home Variable (Principal & Interest) (LVR ≤ 90)

            • Up is 100% owned by Bendigo Bank.
            • Up to 50 offset accounts
            • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)
            Important Information and Comparison Rate Warning

            Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of December 12, 2023. View disclaimer.

            The big four banks and many other institutions no longer offer LRBA loans due to their perceived risk and complexity, with the likes of Westpac and Commonwealth Bank ending their involvement in 2019. 

            The 2014 financial system inquiry recommended banning LRBAs to “prevent the unnecessary build-up of risk”, with lower-income users generally the most disadvantaged by using these schemes. 

            See also: When are SMSFs not worth the cost?

            But it appears that hasn't deterred SMSF customers from using these loans.

            Lenders still offering SMSF loans at the time of writing include: 

            • La Trobe Financial
            • Liberty Financial
            • Bank of Queensland (BOQ)
            • Switzer Home Loans
            • Mortgage House
            • Freedom Lenders
            • Reduce Home Loans
            • Rate Chaser Home Loans
            • LJ Hooker Home Loans
            • Regional Australia Bank

            Photo by MayoFi on Unsplash





            Disclaimers

            Savings.com.au does not provide tax advice. This material has been prepared by Savings.com.au and is for informational purposes only, and is not intended to provide, and should not be relied on for tax advice.

            For tax advice relevant to you, visit the ATO or consult an independent tax advisor.

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