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Don’t give up on an SMSF property loan

grass house in glass piggy bank smsf property loan giving up

As of today, only one major bank will offer SMSF home loans, but that doesn’t mean self-funded retirees should give up hope.

The Commonwealth Bank will be the only major lender offering SMSF home loans as of today, but there are still plenty of smaller lenders in the market, comparison provider, RateCity.com.au said today.

Money spokeswoman Sally Tindall said while it’s getting more difficult to buy property through an SMSF, it’s still not impossible.

Noting that NAB stopped lending to SMSFs in 2015 and Westpac exited today, with ANZ never offering them to begin with, Ms Tindall said investors will need to consider other options.


“We’ve also seen other lenders tighten serviceability rules, which has further limited people’s options,” she said.

“However, even though the Financial System Inquiry in 2014 recommended banning SMSF home loans, there is still plenty of life left in the sector.”

These are the 18 lenders that still offer SMSF home loans to new customers:

1. AMP Bank
2. Bank Australia
3. Bank of Queensland
4. Bendigo Bank
5. Big Sky Building Society
6. Commonwealth Bank
7. Heritage Bank
8. Hume Bank
9. IMB Bank
10. La Trobe Financial
11. Liberty Financial
12. LJ Hooker Home Loans
13. Macquarie Bank
14. Mortgage House
15. Regional Australia Bank
16. Resi
17. Switzer Home Loans
18. Yellow Brick Road

These lenders no longer offer SMSF home loans to new borrowers, but will still service existing borrowers:

1. Bank of Melbourne
2. BankSA
3. Beyond Bank
4. Homeloans
5. NAB
6. St.George Bank
7. Westpac

Commenting on the list, Ms Tindall said many of these lenders are smaller so may have escaped notice.

“It’s important to shop around, because there’s quite a lot of variation in terms of rates, fees, LVRs, interest rate options, loan amounts and loan terms,” she concluded.

A troubled area

The question mark around SMSF lending returned to headlines in July when Westpac announced it would pull out of SMSF lending, citing a need to streamline its product offering. 

According to property research group RiskWise, lenders' shift away is a reflection of the "high risk endeavour" that is SMSF property investment as apartment oversupply takes effect.

Don’t give up on an SMSF property loan
grass house in glass piggy bank smsf property loan giving up
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Neil - I retired about a year ago and now I've got less income than I planned for. Can I sue my financial planner?....
Joe - Agree with Terry Dwyer. The really nasty part is the way it will hit self funded retirees (through their SMSF in many cases) who have direct shares.......
John - Not sure loss of 30% of income is something I just let go. Options I will be doing is investing overseas, local and international REITs and seeing if.......
Dr Terry Dwyer, Dwye... - I am amazed by these comments. The effects will be subtle but pervasive. It will have a huge effect on superannuitants in pension mode as with low.......