In an interesting twist 2 major banks have recently stopped lending for residential properties purchased in an Self Managed Super Fund
ANZ Bank recently backed the Financial System Inquiry’s recommendation to ban SMSF lending, after committing to not include SMSF loans in its mortgage strategy.
NAB is now the second major bank to shun SMSF property loans.
These decisions occurred before the recent interest rate drop, but came as concerns continue to mount in the media that Australia’s record-low cash rate is fuelling an already overheated property market.
If you already have a loan for you SMSF with one of these banks, nothing will change and the banks will support you.
And if you’re looking to buy property in your SMSF, don’t worry – there are many other banks out there willing to lend for this strategy.
Of course borrowing to buy property in your SMSF doesn’t suit everyone, so seek professional advice first.
If you’re not sure where to start why not read this article – How to buy a property through your Self managed Super Fund