Does Macquarie Bank Do SMSF Loans?
Self-managed super funds are a popular way to fund retirements. An SMSF loan is a variety of home loan that is used by an SMSF to purchase one or more investment properties. Any rental income or capital gains are deposited back into the fund to increase your retirement savings. These loans used to be offered by banks and other traditional lenders, including Macquarie Bank. However, due to the increase in housing prices and the COVID-19 pandemic, banks and other traditional lenders have stopped offering these risky loans.
Why Have Banks Stopped Lending to SMSFs?
There are a number of reasons banks and other traditional mortgage providers have stopped lending to super funds. For one, there is a smaller market for these loans. It is more worthwhile for these lenders to focus on products with larger markets. In addition, lending money to any type of trust is complicated and involves lots of legal complications. Finally, if the fund does default on their repayments, the lender can only seize one asset: the property. They cannot touch any money in the super fund, nor can they benefit from any of the capital gains or rental income made from the property before default.
What About Mortgage House?
As a non-bank lender, we take a forward-thinking approach to home loans. We offer a variety of loan products not offered by traditional lenders, allowing us to provide specialized loans to every Australian. If you are interested in using your self-managed super fund to purchase an investment property, contact the experts at Mortgage House to learn more about our SMSF loans products.