Following APRA's review of lending practices, changes have been made to investor lending policies. This has caused significant changes in the number of lenders providing SMSF loans and those who remain have updated their lending policies and requirements.
For those clients wishing to finance for a residential property purchase within an SMSF, they should now be prepared to:
Lenders are also now placing greater reliance on the expected rental return of the property to cover the mortgage repayments. Borrowers may find that they cannot obtain the level of finance they might have budgeted for prior to these changes.
Borrowing to purchase a property within an SMSF is an extremely complex area. Please contact KK Partners to discuss your personal situation.