Commbank decides to scrap SMSF SuperGear

Please be advised that the Commonwealth Bank has decided to withdraw the Self-Managed Super Fund (SMSF) lending product that allows SMSF trusts to purchase both residentially and commercially secured investment properties.

As a result of this change, the Commonwealth Bank will cease offering its SuperGear product from the 12th October 2018

What are the transition arrangements?

As part of the transition arrangements, Commonwealth Bank will continue to accept SuperGear applications up until the close of business on the 12th October 2018.

They will not accept new applications or re-finance requests for a SuperGear transaction after this date.

In addition, approval of any applications submitted before the 12th October 2018 will be conditional on being funded and settled prior to the close of business on the 28th December 2018.

How will this change impact existing customers?

The Commonwealth Bank will continue to support and service existing SuperGear customers.

They will also write to all existing customers from next week to let them know that there will be no change to their existing arrangements.

They will continue to accept SuperGear loan term extensions requests, however new money funding or loan increases will not be offered.

What does this mean for brokers?

Commission payable on eligible SuperGear loan accounts will continue under existing contractual arrangements.

SuperGear will cease to be an Eligible Product under Commonwealth Bank's Commercial Broking program. As a result of this decision, the bank will also stop accepting new applications for SuperGear accreditation effective immediately.

SuperGear will also cease to be an Eligible Product under the Commercial Connect referral program currently offered to accredited CommBank Home Loan brokers effective immediately.

Resi - Product Specials hotting up for Spring

At Resi, we are very excited to bring to you several special offers. Not only do we have great investment solutions with the Resi Flexi Options Range, but we also have some hot rates available on Owner-occupied properties!

With the Flexi Options range, we have investment rates starting at 3.99% p.a., but we have sharp pricing for both Interest Only as well as P&I Investment Lending. Not only that, we are offering Investment solutions up to 90% for both P&I lending as well as Interest Only!

Here is a snap shot of our latest pricing, which is available with a full commission paid of 0.60% Upfront (plus GST) and trail of 0.15% (plus GST).

Loan Description

Variable Interest Rate

Investment, P&I, LVR < 80%

3.99% p.a.

Investment, P&I, 80%<90%

4.26% p.a.

Investment, IO, LVR < 80%

4.39% p.a.

Investment, IO, 80%<90%

4.79% p.a.

Owner-Occupied, P&I, LVR < 80%

3.74% p.a.

Owner-occupied, P&I, 80%<90%

4.06% p.a.

For more detail plus information on our other great specials please refer to the detailed rate card attached.

Other important points:

  • 90% LVR also allows for Cap LMI for P&I loans (Hard cap of 90% for Interest Only)
  • Clawback period is only 12 months
  • Construction and the best bridging options in the market are also available.

Interested to find out more?

The team is on hand to discuss your next scenario.

Name

E-mail

Phone

Scenarios

scenarios@resi.com.au

1800 737 448

Craig Herden Relationship Manager

Craig.Herden@resi.com.au

0478 537 841

Jason Hulbert Relationship Manager

Jason.Hulbert@resi.com.au

0468 755 419

Tony Wakim Relationship Manager

Tony.Wakim@resi.com.au

0416 409 100

Australia's property strength revealed.

By Paul Bennon, Managing Director, DEPPRO

The latest ABS Property Price Index released this week had very positive news for the property sector with the Index showing that collectively the value of dwellings in Australia has surged to $6.9 trillion.

This is an increase of nearly $1 trillion in the collective value of residential dwellings in Australia since 2016 when the figure stood at $6.0 trillion

New South Wales, Victoria and Queensland accounted for the lion's share of national residential wealth.

The collective value of dwellings in New South Wales has now reached $2.7 trillion, in Victoria, $1.9 trillion and in Queensland, $1 trillion.

Source(s): Residential Property Price Indexes and Residential Property Prices, Weighted average of eight capital cities, Quarterly percentage change-RPPI Percentage Quarterly Change 8 caps - Timeseries.xls

While the overall value of capital city dwellings has undergone a correction during 2018, the ABS figures show that over the long-term investing in Australian property is a secure long-term investment.

The figures show, for example, the median house price in Sydney has nearly doubled over the last nine years to $945,000. Even in smaller State capitals such as Hobart, the median house price has jumped nearly 50% to $450,000.

Overall, the ABS data showed that the median price of a dwelling in Australia is now $686,200.

It also revealed the number of dwellings in Australia has now breached the 10 million bench-mark with 10,093,700 in the June quarter 2018.

Both the total number and value of dwellings in Australia highlighted by these ABS figures underscores the importance of the property sector as a driver of personal wealth for ordinary Australians.

Property investors traditionally have accounted for a significant proportion of real estate buyers in Australia.

This is particularly the case amongst people aged over 40 who are investing to property to fund their retirement.

DEPPRO is finding that these mature property investors now account for more than half of all people who use our tax depreciation services.

These mature investors understand that property delivers significant tax benefits especially in relation to deprecation that can total up to 60% of the total purchase price of a property.

For example, a new apartment costing $600,00, these generous tax depreciation benefits can amount to $360,000.


deppro.com.au

Suncorp has a new Small Business offer!

Suncorp have a new Small Business offer, which includes:

  • Simplified manual application form
  • Capacity to Repay calculator for broker
  • Tailored education sessions


Check out the below table for the details on the new competitive offer for small business customers.