Major removes SMSF lending

by Rebecca Pike18 Sep 2018

A second major lender has decided to remove SMSF lending from its services.

Commonwealth Bank of Australia (CBA) has said it is “streamlining” its product offering and as such will no longer offer the ability for self-managed super fund (SMSF) trusts purchase investment property with their fund.

In July, Westpac announced it would be removing its SMSF product. CBA also announced it would be removing low-doc loan products.

CBA’s SuperGear product currently available will cease at close of business on 12 October. New applications and refinancing applications will not be accepted after this date.

Any approvals before 12 October have the condition they must be settled and approved by 28 December 2018.

A CBA spokesperson said in a statement, “As part of our strategy to become a simpler, better bank, we are streamlining our product portfolio and have made the decision to discontinue our ‘SuperGear’ lending product which enabled investment in residential and commercial property through self-managed super funds.

“This change will be effective from close of business on 12 October 2018. We will continue to support our existing customers who have these loans with us.”

For brokers, commission payments will continue as per existing agreements.