loans.com.au launches 'low rate' SMSF home loan

author-avatar By on July 27, 2021
loans.com.au launches 'low rate' SMSF home loan

An online lender is looking to make it easier for those self-managing their super to build their wealth with a new home loan product.

'Low rates' and 'cutting edge service' are the promises for loans.com.au's new loan for self-managed super funds (SMSF). 

The SMSF loan is available to borrowers with a loan-to-value ratio (LVR) up to 80% with a variable interest rate of 3.69% p.a. (3.70% p.a. comparison rate), with a maximum loan amount of $1 million. 

Managing Director of loans.com.au, Marie Mortimer, said the lender now offers one of the lowest SMSF rates in the market with a 'quick and simple' refinancing process. 

"By choosing to refinance your SMSF loan with loans.com.au, you'll be saving money on interest rates, and you can build your retirement wealth quicker," Ms Mortimer said. 

"For the last 10 years since we launched our business, we've been slowly developing our product base to suit the diverse range of customer needs.

"We know that not all customers are the same, so we have a variety of products, allowing our customers to personalise their loans based on their needs.

"Customers purchasing property via their self-managed super funds has become increasingly common in Australia, and it isn’t a very competitive space, so with loans.com.au entering this market, we want to make this space more competitive by offering first class service coupled with low interest rates, to allow those who are building their retirement wealth, to succeed sooner." 

The loan is only available for people looking to refinance, but Ms Mortimer said the lender would consider purchases in the future. 

There are very few lenders in the SMSF lending space as it's considered a slightly higher risk than regular mortgage lending.

Loans in the SMSF space are considered 'limited recourse', meaning in the event of borrower default, the lender can only seize the security the loan is tied to, rather than other assets in the fund such as cash and shares, which explains the slightly higher interest rates.

Related: How to buy property through an SMSF in Australia

 


Photo by Thulifigar Ali on Unsplash

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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Alex joined Savings.com.au as a finance journalist in 2019. He enjoys covering in-depth economical releases and breaking down how they might affect the everyday punter. He is passionate about providing Australians with the information and tools needed to make them financially stable for their futures.

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