Powered by MOMENTUM MEDIA
subscribe to our newsletter sign up

Major lender pulls SMSF loans

Westpac, SMSF loans

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.

Advertisement
Advertisement

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. 

Major lender pulls SMSF loans
Westpac, SMSF loans
nestegg logo
subscribe to our newsletter sign up
FROM THE WEB
Recommended by Spike Native Network
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.......
Anonymous - Someone with 1.6M in their SMSF might lose 30% of their retirement income. Someone else with 6.6M in theirs will lose much less by using the franking.......
Dr Terry Dwyer, Dwye... - If it were just limiting the exempt current pension income exemption to a tax-free threshold and forgetting about removing franking credit refunds,.......
Anonymous - Well technically stolen bitcoins end up in the wallet of the Scammer or person who stole them. ....