All Topics / Finance / SMSF loan interest rates

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  • Profile photo of bjsaustbjsaust
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    @bjsaust
    Join Date: 2009
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    Hi, I'm just wondering if there's much competition in interest rates for SMSF loans. When I first took out my loan there wasn't really, so I'm now paying 6.8% from St George. I'm paying 5.82% for my PPoR and investment loan outside of super (different lender). I'm wondering if its worthwhile trying to refinance the SMSF loan (if thats possible, haven't looked into it yet).

    Profile photo of TheFinanceShopTheFinanceShop
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    @thefinanceshop
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    bjsaust wrote:
    Hi, I'm just wondering if there's much competition in interest rates for SMSF loans. When I first took out my loan there wasn't really, so I'm now paying 6.8% from St George. I'm paying 5.82% for my PPoR and investment loan outside of super (different lender). I'm wondering if its worthwhile trying to refinance the SMSF loan (if thats possible, haven't looked into it yet).

    Hi Bjsaust,

    SMSF loans are priced higher than traditional loans. Generally speaking I would stay stick with St George as their SMSF loans are very competitive. Liberty Finance is particularly good if you are setting up a brand new loan.

    Shahin Afarin – Property Finance Consultant
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    TheFinanceShop | Elite Property Finance
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    Residential and Commercial Brokerage

    Profile photo of bjsaustbjsaust
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    @bjsaust
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    Ok. Thanks very much for the reply :).

    Profile photo of TerrywTerryw
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    @terryw
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    You can refinance a SMSF loan, but St George is a good one as you don't have to provide a personal guarantee.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
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    Also The Dragon is one of the only SMSF lenders that offer a offset account which can be very useful.

    We do a fair amount with SGB with their SMSF product and they do certainly have their underwriting pecularities.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of bjsaustbjsaust
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    @bjsaust
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    Thanks. I know they were popular back when I set it up, but I also noticed that banks have reduced LVR maxes for SMSF loans since then (did need 30% deposit, I gather now 20% is more common), so I'd hoped they'd also gotten more flexible with rates.

    I don't have the offset account setup, but its not a bad idea. I'm only getting about 3.5% on my cash acct for SMSF.

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
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    Yes it is a very useful tool for SMSF investors.

    We had a SMSF deal approved today and the client insisted on an offset account so he could maximise his SMSF return on the property.
     
    As i mentioned not too many lenders offering such a product.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

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