All Topics / Finance / ** ING have changed their SMSF lending criteria!

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  • Profile photo of i-smsfi-smsf
    Member
    @i-smsf
    Join Date: 2013
    Post Count: 15

    Hey all,

    Can anyone confirm or deny…

    I have heard from a broker that ING have imposed self-regulation/safety measures in light of increased ASIC SMSF scrutiny and crack downs.

    Their NEW lending criteria for SMSF are:

    1. SMSF has to be established for 12 months.

    2. Property has to be completed (cant be off-the-plan) and greater valuation scrutiny 

    3. Tighter LVRs for borrowing SMSFs

    It will be interesting to see if any other banks follow. Can anyone shed some light on this..?

    Profile photo of RedwoodRedwood
    Participant
    @redwood
    Join Date: 2013
    Post Count: 340

    G'day I-SMSF,

    There are a number of lenders with an existing policy such as above (1&2), one i'll name is Liberty.

    Re number 3, pretty much every lender is 80% for resi and 70% for commercial, I can't think of any who are not? what is the tighter LVR criteria spoken of?

    I really don't see the link to the ASIC scrutiny though? ASIC is cracking down on SMSF Property advertising without an AFSL.

    I don't use ING, however would be interested in anyone seeing tighter LVRs.

    Cheers Ivan

    Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
    http://redwoodadvisory.com.au
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    SMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS

    Profile photo of i-smsfi-smsf
    Member
    @i-smsf
    Join Date: 2013
    Post Count: 15

    Im trying to get the document that was circulated around from ING to its brokers and partners. Apparently it was heavily driven by ASIC's position on the suitability of property investment in SMSF's.

    Profile photo of RedwoodRedwood
    Participant
    @redwood
    Join Date: 2013
    Post Count: 340

    Once you do shoot it to me on the email address below if you don't mind.

    ASIC position on suitability? ha, every bank smells money, and the money is in SMSFs….that satisfies suitability for them.

    I had a credit officer at a leading bank ask me today to explain why a Custodian Trustee was on a contract of sale. I laughed at first, then called the head of credit to outline my concerns. 

    Cheers, Ivan

    Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
    http://redwoodadvisory.com.au
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    SMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Just completed a 80% residential lend on a newly rolled over SMSF on a Heritage listed building in a large regional town in WA so maybe i missed the changes !!!!

    Not one i use regularly but no mention on their Broker website.

    Ivan, last year i did a series of SMSF lectures around the Country and had a member of the audience (who turned out to be a Bank credit officer) ask me the same question.

    If he hadn't come upto me and given me his business card at the end i would have thought he was the joker in the pack.

    Highly concerned at what they teach them at SMSF credit school.

    Cheers

    Yours in Finance

     

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Funny how everyone is talking about tighter LVR's however we have just completed a couple of 100% SMSF loans.

    Not easy and documentation needs to be bang on but again where there is a will there is a way.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of RedwoodRedwood
    Participant
    @redwood
    Join Date: 2013
    Post Count: 340

    Rich.

    Tighter LVRs – Nah….don't see it in practice to tell the truth

    100% SMSF loans? I'll say it, I have not seen that, you mean 3rd party finance with 100% loans…..email me buddy with details, i'd love to hear about it.

    Can't be the top 4 (IMO), but would be interested to hear more. I'm sure best interests of the client are taken care of but i'm sure 100% is not for anyone, i'd love to see the loan criteria such as minimum balance required in SMSF. 

    Can you imagine Joe Blow, starts an SMSF with $50k and takes out a 100% loan.

    Rich, dont tell the spruikers, they will be on it in a flash mate.

    Can we start an SMSF Property Section on the site?

    Cheers, Ivan

    Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
    http://redwoodadvisory.com.au
    Email Me | Phone Me

    SMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Hi Ivan

    Yes couldn't agree it is certainly not for you average joe but done properly I think it works well for the right client.

    Property spruiker heaven.

    i will bring up the new section at the next Moderator meeting but I think there are a few other forums we would add in first.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of RedwoodRedwood
    Participant
    @redwood
    Join Date: 2013
    Post Count: 340

    Richard, 

    Interesting.

    In your next moderator meeting (cough cough), please raise the ridiculous amount of spam coming through the gateway. I have only been here a few months, but its easy for the spammers to get in.

    Interested in the 100% product if you are happy to share.

    Cheers, Ivan

    Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
    http://redwoodadvisory.com.au
    Email Me | Phone Me

    SMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    I agree that we should have more discussion of SMSF – this is not brought up enough.

    Ivan, it is not a product, but a strategy. Lend your SMSF money and it borrows the rest from a bank.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

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