One of the big four banks has announced changes to its SMSF loans which will see the maximum interest-only repayment term halved and a $200,000 liquid assets requirement introduced.
In a communication to brokers, Westpac announced it has implemented policy changes to its SMSF Business Lending and SMSF Home Loan products, effective from 26 June 2017.
Westpac said it has reduced the maximum interest-only repayment term from 10 years to 5 years for its SMSF loans.
The bank also introduced a minimum $200,000 liquid assets requirement for SMSF loans upon application, stressing that there will be no exceptions to this requirement.
There have also been updates made by Westpac to the SMSF loans application process.
“The Statutory Declaration by SMSF Trustee document has been updated to clarify that independent financial and legal advice is to be obtained before settlement,” the bank said.
Westpac said the changes have been implemented to “protect the interests of its customers and ensure it continues to meet its regulatory requirements”.
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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