SMSF lending can change — and staying with the same lender for years could be costing you more than you realise.
I had one of my lenders recently assisting with a review of a $600,000 residential investment loan held within an SMSF. The client had been with their existing lender for some time, but that lender was no longer actively pursuing SMSF lending, making a meaningful rate review increasingly unlikely.
By refinancing through an alternative SMSF lending solution, the client secured a 6.94% p.a. interest rate — reducing their rate by approximately 3 percentage points.
On a $600,000 loan, that equates to more than $18,000 a year in potential interest savings.
Importantly, those savings don’t simply disappear into higher interest costs. They can remain within the SMSF, potentially helping preserve retirement capital and strengthen the fund’s long-term position.
When was the last time you reviewed your SMSF loan?
If your SMSF clients:
- Have held their loan for several years
- Haven’t reviewed their interest rate recently
- Are with a lender that has reduced or exited SMSF lending
- Have substantial residential investment debt
- Could benefit from improved cash flow within their SMSF
…it may be worth taking another look at their lending arrangements.
A loan that was competitive several years ago may not be competitive today.
At Advanced Finance Group, we can review the existing structure, assess the available SMSF lending options and determine whether refinancing could make financial sense.
If you have an SMSF loan that hasn’t been reviewed recently, let’s see what options are available.
Example based on a $600,000 loan and an indicative 3% reduction in interest rate. Actual savings will depend on the loan balance, rate, fees, loan structure and individual circumstances. Lending is subject to lender policy and approval.
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