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Why ranking SMSF Loans is a waste of time

“20 Best SMSF Loans”

This was a recent feature in a well known property investment publication.

Whilst I appreciate the magazines intention to educate readers regarding factual loan information such as rate and fees, these types of product listings are really not worth the paper they are written on when it comes to LRBA lending.

You see, every lender has a different appetite when it comes to SMSF. It really doesn’t matter if XYZ Bank has the cheapest rate – if you don’t qualify under their criteria, no loan for you !

Major influencing factors when choosing a lender include (but is not limited to):

  • Age of the property. New isn’t always better some lenders will not lend for properties that are less than 2 years old.
  • Size of the fund. This also varies from little to $200k – $300k regardless of the amount you want to borrow.
  • Affordability. Many lenders will focus on the SMSF itself (contributions, return on other investments & proposed rental return). Whilst others will want full information on your assets outside of SMSF as well. Not handy if you have multiple income streams.

And yet none of these things will ever make it onto a “20 best SMSF Loans” list.

It also highlights the necessity to deal with credit advisors who understand the differences and aren’t relying on a list to select your next SMSF loan.

About Thrive Investment Finance

In her career with some of Australia’s biggest banks, Samantha Bright specialised in helping credit advisors to fund investment properties through superannuation. As a result, Samantha realised that with the right help, everyday Australians could be helped to achieve their dream of owning investment property.

Samantha started Thrive to share her specialist expertise and passion for finance to help people capitalise on an asset that is often overlooked. She works with regular people, with modest superannuation funds, to create a secure future while maintaining their current lifestyle.

This was first posted on my Linked In Profile.  See in here 

 

 

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