St.George Bank confirmed to sister title SMSF Adviser that it plans to exit the SMSF loans space as part of plans to simplify its range of products for SMSFs.
“In order to simplify and streamline our self-managed super fund products, we will be withdrawing from sale our SMSF Home Loan product and Business Lending to SMSFs, effective Tuesday, 31 July 2018,” said a St.George spokesperson.
The bank confirmed it will continue to service and support its existing customers.
Meanwhile, Macquarie Bank 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.
The move comes as accountants are increasingly struggling with securing new finance for their SMSF clients.
Earlier this year, national tax and accounting network H&R Block has found some SMSF clients who are involved in new property developments are “not getting great outcomes” in the current market.
“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,” said H&R Block director Kimberlee Brown.
Reports also continue to surface about clients struggling to service or secure investment loans in this tougher lending environment and amid changes to property taxes.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.