SMSF Home Loans Australia

When Was The Last Time You Checked Your Self Managed Super Fund Investment Loans?

I was on a webinar the other day and the host was talking about how a lot of borrowers are currently paying 8% interest on their SMSF investment loans. Unfortunately, a lot of investors don’t really stay on top of their investment loan interest rates the way that they do their home loan rates.

They check their super’s financials and see that everything is in the green and leave it at that. That complacency is costing them big time…

Here’s what’s happening – a lot of lenders have left the SMSF investor loan market. The new lenders entering the market are more willing to offer competitive rates.

Those lenders that have left the market aren’t re-pricing those SMSF loans – the reason being they WANT those loans off their books. The best way to encourage those customers to leave is to keep their interest rates very high and not bring them into line with the market.

If you have one of these loans, then I’ll give you an idea of what is happening – a quick scan of current SMSF loans says that if your interest rate is currently 8% or higher, then it’s not unreasonable to find yourself a 1-2% saving in the current market if you refinance.

On a $500,000 loan, a 2% lower interest rate means a saving of up to $10,000 a year – which will quickly add up in your SMSF nest egg. It might get you your next investment, it might help quickly build a cash buffer in your account… Imagine what will happen to your SMSF over the next 10 years if you are saving $10,000 in interest each year.

You don’t need to be a financial advisor to know that is a good deal.

If you haven’t reviewed your SMSF loans in the last 2 years or more then it will probably make sense to have your portfolio of investments reviewed and see what savings you can make. Call 1300 661 211 or register online at https://www.mortgageworldaustralia.com.au/contact-us/ and we’ll review your SMSF loans and see what savings you can make.

Patrick O'Brien

Patrick is a Director and a Home Loan Specialist. He has been helping Australians with home loans since 2001. Prior to working as a mortgage broker Patrick was employed by Macquarie Bank for 3 years and also worked as an accountant for a publicly listed company. Patrick’s qualifications include:

Bachelor of Business, UTS Sydney. Majored in accounting and sub-majored in Finance and Marketing.
Diploma of Finance and Mortgage Broking Management FNS50310
Certificate IV in Financial Services (Finance/Mortgage Broking) FNS40804