As part of a raft of interest rate changes to its home loans, Macquarie has increased the variable rate of its SMSF property loans by 0.10 of a percentage point up to 5.90 per cent.
It has also increased the variable rate for owner-occupier loans with principal and interest repayments by 0.06 of a percentage point and the variable rate for owner-occupier loans with interest-only repayments by 0.10 of a percentage point.
It has decreased three-year fixed rates for all owner-occupier and investor loans by 0.10 of a percentage point.
These new rates will be effective for new customers on 13 July 2018 and for existing customers on 23 July 2018.
This comes at a time that loans are becoming increasingly more difficult to secure for SMSF trustees.
Speaking to SMSF Adviser last month, You’re Welcome Finance director Chris Straw said some of the main lenders in the SMSF space have been tightening up on the types of properties they will provide finance for and also requiring borrowers to have stronger assets backing the loan.
“There is one particular bank that won’t take a security over a property that’s less than six months old. So they’ve got to be more established properties, rather than the brand-new style of property,” Mr Straw explained.
H&R Block also recently found that some clients who over-committed during market highs, or locked themselves into off-the-plan purchases, are running into troubles as lending conditions tighten and tax concessions are phased out.
“There’s been a lot of tightening in the lending world with the banks. In fact, some have dropped out of the market altogether when it comes to lending to SMSFs,” H&R Block director Kimberlee Brown told SMSF Adviser.
