A major Australian bank is set to remove SMSF loans from its shelves, citing a need to “streamline” its product offering.
Westpac announced on Friday that it would no longer offer SMSF loans for new consumer or business lending. This means the SMSF Investment Property Loan will no longer be available for sale, and business lending to an SMSF for either residential or commercial securities will no longer be available.
The changes are set to come into place on 31 July 2018, Westpac said, noting that customers with existing SMSF loans will continue to be serviced by the bank to split, switch, or extend loans.
However, existing clients will not be able to switch from principal and interest repayment structures to interest only. Clients also won’t be able to extend interest only terms.
Credit applications and internally-recorded customer sales conversations dated prior to 31 July will be allowed for approval up to 30 October 2018.
Westpac subsidiary St. George last week announced that it would also be removing its SMSF Home Loan product and Business Lending to SMSFs from sale as of 31 July 2018.