Commonwealth Bank has become the only major bank to offer SMSF home loans, alongside a number of smaller lenders.
However, as of 1 August, Westpac and its subsidiaries – St.George Bank, Bank of Melbourne and BankSA – have left the SMSF market. They are no longer accepting applications from new borrowers, although they will continue to service borrowers with existing SMSF home loans.
Smaller lenders making the running
RateCity.com.au money editor Sally Tindall said it’s getting harder for Australians to buy property through their superannuation, but that it’s far from impossible.
“We’ve also seen other lenders tighten serviceability rules, which has further limited people’s options.
“However, even though the Financial System Inquiry in 2014 recommended banning SMSF home loans, there is still plenty of life left in the sector.
“RateCity.com.au research has found 18 different institutions that allow limited-recourse borrowing arrangements. Many are smaller lenders, so they might not be on your radar.
“It’s important to shop around, because there’s quite a lot of variation in terms of rates, fees, LVRs, interest rate options, loan amounts and loan terms.”
Lenders that still offer SMSF home loans to new borrowers:
- AMP Bank
- Bank Australia
- Bank of Queensland
- Bendigo Bank
- Big Sky Building Society
- Commonwealth Bank
- Heritage Bank
- Hume Bank
- IMB Bank
- La Trobe Financial
- Liberty Financial
- LJ Hooker Home Loans
- Macquarie Bank
- Mortgage House
- Regional Australia Bank
- Switzer Home Loans
- Yellow Brick Road
Lenders that no longer offer SMSF home loans to new borrowers (but still service existing borrowers):