The dollar value of non-recourse loans in self-managed super funds (AMSFs) has increased from $1.4 billion in June 2011 to more than $21.8 billion in June 2016. Just as with individuals though, Trustees are also keen to find a great-value loan.
In 2016 CANSTAR has assessed 67 loan products offered by 14 financial institutions, with Westpac achieving Outstanding Value – SMSF Loans across all fixed terms assessed.
|Outstanding Value||SMSF Loan||1 Year Fixed||Westpac|
|Outstanding Value||SMSF Loan||2 Year Fixed||Westpac|
|Outstanding Value||SMSF Loan||3 Year Fixed||Westpac|
|Outstanding Value||SMSF Loan||5 Year Fixed||Westpac|
In addition to offering the all-important competitive interest rates, Westpac also excelled in the features category of CANSTAR’s assessment. Among other features, Westpac offers the following:
- Both individual and company trustees are eligible to apply for a loan
- Personal guarantee is not required
- Refinancing is available
- Additional borrowing is also available
- Rental income can be used to assess the serviceability of the loan
- Employer SG and voluntary contributions are allowed
- Lump sum and additional repayments are allowed
- Fee free split facility
- 90 day pre-approval is available
- Instant valuations are available
Westpac was Australia’s first bank, and its first officially incorporated company. Established in 1817 as the Bank of New South Wales, Westpac now serves around 13 million customers.
Westpac is one of the big four Australian banks and they own a number of other banking brands including St. George, Bank of Melbourne, BankSA, and RAMS.
If you’re a landlord or own an investment property, watch Westpac’s series of home loan tips for investors.
Using an SMSF to borrow to purchase residential investment property in Australia. Westpac advises:
- Suitable for Australian residents with an established SMSF as well as those planning to establish a SMSF
- Loan amounts from $200,000 to $2,000,000, giving you the potential to acquire property worth more than your SMSF’s available cash funds
- Use rental income to assist with repayments
- A limited recourse loan where the amount recoverable on default is limited to the secured property itself, and all other assets of your SMSF are protected
- Choice of repayment types – principal and interest, or interest only
- Flexible terms from 1 to 30 years (interest only – maximum 15 years)
- At the end of the interest only term, repayments automatically change to principal, interest and fees for the remainder of the contract term
- Rates – variable, fixed and combination loans (fixed and variable) available.
Source: Westpac. Current 1/11/16
How Westpac supports the community
- Community focus areas: Westpac directly supports disaster relief for businesses and communities, addressing financial and educational disadvantage in Aboriginal and Torres Strait Islander communities, and microfinance for marginalised small business people.
- Supporting community organisations: Westpac provides financial solutions for Not-For-Profit businesses and long-term group community partnerships.
- Westpac Foundation: This foundation funds innovative social enterprises that are making a difference in the world.
- Charitable giving: Westpac also has an employee volunteering scheme and a workplace giving program.