NAB is now the second major bank to shun SMSF property loans, with ANZ recently announcing its support for the Financial System Inquiry’s recommendation to remove the exception to the general prohibition on direct borrowing for LRBAs made by superannuation funds.
“At NAB, we are constantly assessing our product offering through our risk appetite and the broader regulatory environment,” a NAB spokesperson told SMSF Adviser.
“Our small business bankers will continue to support existing SMSF customers, providing them with service and product proposition including: commercial and equity lending, share trading, deposits, fixed income, investment management, insurance and advice.”
The news comes as concerns continue to mount that Australia’s record-low cash rate is fuelling an already overheated property market.
Loan Market chairman Sam White said this week’s RBA rate cut could accelerate the introduction of stronger macroprudential measures in a bid to slow down the Sydney property market.
“[The] rate cut is a good sign for Australian business and for the Aussie dollar and our exporters becoming more competitive; however, we can’t ignore its impact on the property markets – particularly Sydney,” Mr White said.
Meanwhile, Laing+Simmons general manager Leanne Pilkington said Australian real estate “in no way needed another interest rate cut” since the market is already “red hot”.
“The RBA would have been wise not to pour further fuel on Sydney’s property fire,” Ms Pilkington said.
Better get in and move number 6 before the banks shut the door…