SMSF Lending – Star Ratings

According to the Australian Taxation Office (ATO), self-managed superannuation funds represent the largest stand-alone chunk of the superannuation market in terms of asset size, at 30% of the $1.9 trillion in 2014. Approximately 8% of Australians manage their own super.

In terms of lending, the future of limited recourse borrowing arrangements within self-managed super funds has just been confirmed as secure. In December 2013 the federal government commissioned a wide-ranging Financial System Inquiry (FSI) to examine how the financial system could be positioned to best meet Australia’s evolving needs. In December 2014 the Final Report was released, making 44 recommendations overall, including that borrowing within superannuation be restricted.

In October 2015 the federal government released its response to the FSI report, accepting 43 of the 44 FSI recommendations. The sole recommendation rejected was the limit to borrowing within superannuation funds.

Prior to the federal government response, some lenders had been reducing their SMSF lending activity; it remains to be seen whether these lenders will reinstate SMSF lending to their product list.

No matter what the market’s been doing, we’ve stayed on top of the changes so we can tell you what lenders provide great value. Take a look at what makes the five-star winners special and our analysis of all SMSF loans we rated.

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