Lender launches SMSF home loan
Online lender loans.com.au has launched a 4.99 per cent SMSF home loan (5.04 per cent comparison rate), according to SMSFAdviser.com.au
SMSF Adviser reporter Katarina Taurian reported the lender as saying that many SMSFs were paying too much for investment property loans.
The Adviser quoted loans.com.au managing director Marie Mortimer as saying the lender could undercut the banks because it did not list the SMSF loan as a commercial loan.
Loans.com.au treated the SMSF loan as a residential loan and spread the risk across its loan portfolio. The lender also claimed to have lower legal fees and interest charges than most other lenders. The product also had Lenders’ Mortgage Insurance, paid by the lender.
Ms Mortimer was quoted as saying that SMSF trusts were paying too much for property investment loans because an SMSF loan was considered by lenders to be a “niche market”.
She said SMSF loans were still about 0.5 per cent more expensive than typical variable rate home loan interest rates. Read more: http://www.smsfadviseronline.com.au/news/11904-online-lender-launches-smsf-home-loan