Powered by MOMENTUM MEDIA
subscribe to our newsletter

Gadens cautious on SMSF loans

While the government has yet to issue a formal response to the Financial System Inquiry, a partner in one major Asia Pacific law firm believes changes are on the horizon for SMSF borrowing and is cautious about advising on new LRBAs.

Gadens partner Kathleen Conroy told Mortgage Business' sister publication SMSF Adviser that she believes the government will place restrictions on the purchase of residential property by “mum-and-dad” SMSF investors, but will leave the current commercial property allowances untouched.

“I think they basically want to get out of the system all those people who are literally opening the fund the same day as they’re signing the contract,” Ms Conroy said.

'“You’ll always get people who don’t conduct their funds properly, but hopefully once they tighten up a little on the borrowing, you won’t get as many people opening funds who simply don’t have the money to do it.” 

Ms Conroy added she is warning clients that she cannot say with “any certainty” that the current borrowing options will be available for the foreseeable future.

Advertisement
Advertisement

PROMOTED CONTENT


“You really do have to go into it with your eyes open; don’t just think, ‘that’ll be ok, this has been around for years now’, because it is going to change. In circumstances where you can’t say to a client, ‘these are what the changes are’, you have to say, ‘well, there is a risk’.”

Gadens cautious on SMSF loans
mortgagebusiness

Latest News

Banks are too reliant on regulatory oversight to do what is right for borrowers, the big four boss has said. ...

There has been a surge in Melbourne residents migrating to regional Victoria, and an uplift in new housing approvals in Geelong, new researc...

ASIC reported a significant increase in the number of ACL and AFSL applications it received in the past year due to licensing reforms, inclu...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.