SMSF Comparison Matrix

 

Calliva Westpac NAB St George Macquarie
matrixtablehead1 Product Calliva SuperAccess Limited to two products,
only being:
– Business Loan (residential,
commercial or rural property as security)or
– Bank Bill Business Loan		 NAB Commercial Property Loans (CPL)
NAB Home Loans (HL)		 Business Loan Variable /
Commercial Loan Variable /
Business Loan Fixed /
Commercial Loan Fixed		 Macquarie Property Lever
Purpose For acquisition by complying SMSF of an income producing property. May be owner occupied or investment. Related party vendors OK (Commercial Property Only) To finance the acquisition of
– a residential or
– non-specialised commercial property
for investment purposes
– rural properties non-specialised		 To finance the acquisition of nonspecialised commercial residential property for investment purpose. Lending to SMSF n/a
matrixtablehead2 Loan Type P&I or IO
IO max. 5 yrs, then P&I		 P&I or IO
IO max. 10 yrs		 P&I or IO P&I or IO
IO max. 5 yrs		 IO
Loan Term max. 20 yrs. – residential prop.: 25 yrs.
– non specialised commercial prop.: 15 yrs.		 CPL: max. 15 yrs.
HL: max. 30 yrs.		 1-10 yrs. 9 years & 6 months
Loan Value (min) $150,000 n/a CPL: $50,000
HL: $20,000		 $250,000 $165,000
Loan Value (max) $2,000,000 – residential prop.: $5,500,000
– commercial prop.: $5,000,000
– rural non-specialised: $5,000,000		 no max. limit unrestricted n/a
Larger Loan Available case by case n/a no max. limit n/a n/a
LVR – Current Lease (yrs ≥ 5 with options):
70%
– Current Lease (3 ≥ yrs > 5 with min.
3yr option): 67%
– Current Lease (2 ≥ yrs > 3): 65%
– No lease to 1yr: 60		 – residential property: 72%
– commercial property: 63%
– rual non-specialised: 50%		 CPL: 65%
HL: 70%		 – residential property: 72%
– commercial property: 80%		 55 % of the lower of the vendor price or market value.
Pre-Approval available n/a not available n/a not available
matrixtablehead3 Interest Rate Refer to current rate card
– 10.80% pa variable
– 10.95% pa 1 Year fixed
– 10.80% pa 3 Years fixed
– 10.75% pa 5 Years fixed		 – Business Loan (res. prop.):
SMSF margin loading 0.15% + Base Rate
– Business Loan (com. prop.):
Product margin 0.75% + SMSF margin loading 0.15%= end margin 0.90% + Base Rate
– Business Loan-Other-for Rual property:
standard customer margin based on Risk Grade + SMSF margin loading 0.15% + Base Rate
– Bank Bill Business Loan:
standard customer margin based on Risk Grade + SMSF margin loading 0.15% + Base Rate(fixed and variable rates are available)		 Refer to existing individual product rules – residential:
Business Loan Variable + 0.75%
(currently 10.57%)
– commercial:
Commercial Loan Rate
(currently 11.50%)
– fixed rate:
available (Fixed Rates + margin)		 applicable interest rate at time
matrixtablehead4 Security Type First mortgage over income
producing Commercial, Indus-
trial & Rental real estate, i.e.
– shops
– factories
– workshops
– warehouses
– showrooms
– doctor’s surgeries
– medical suites
– Strate Titled
– Freehold pl. Leasehold in ACT		 First mortgage over asset + supported or unsupported guarantee from member(s)/
director(s) of the SMSF;
particulary where reliant on their future superannuation contributions for serviceability		 First mortgage over asset + guarantee from SMSF member(s)/director(s) given strictly in their personal capacity First registered limited resource mortgage over commercial property given by Property Custodian + guarantee limited to facility expressly excluding right of indemnity against the SMSF and SMSF Trustee given by Property Custodian + additional security maybe required / provided based on individual transactions. First mortgage over asset
Security Exclusions & Limitations – no residential (Mid July it will be possible)
– no specialised like sevice
stations, pubs, motels or
childcare centres
– no vacant land
– no development
– no construction or refurbishment
– no Company Title		 Limited to
– residential
– commercial property purchased (non specialised)
– rural (non specialised)		 n/a n/a n/a
Security Location – Australia
– Major Capital & Metro
– Regional Centres
(population > 25.000)		 n/a n/a n/a n/a
Guarantor not required Requires personal guarantee from members or directors of the SMSF Guarantee and Property Morgage provided by the Security Trustee Guarantee from fund members/directors given in their personal capacity n/a not required
matrixtablehead5 Loan Serviceability (1) Rent must be 80% > monthly Payment
(2) Rent + 8 % assumed on other assets SG contributions to fundTotal income of SMSF (including rental from the Property) must exceed 1.15x debt service (P&I) on the loan at stressed Interest Rate (+2%)

 Residential/Commercial:
(1) net rental income (stand alone) from prop. investment
or
(2) net rental income from property investment +
(3) Super Fund Trustee (director/member) incomeRural
(1) Serviceability assessment is only to include net income
from proposed rural property investment. Additional
superannuation contributions may NOT be taken into
account.
(2) Satisfactory assessment of the farming operators ability
to make rental payments to the property trust must be
undertaken.

 Assesed on case by case basis considering
(1) net income from the property investment
(2) continued super contributions
(3) future super fund earnings		 n/a not stated
matrixtablehead6 Application Fee $1,000.00 (payable on lodgement; non-refundable but credited against establishment fee at settlement) n/a Refer to existing individual product profile n/a $3,000
Establishment Fee 1.5% paid at settlement (1) Business Loan (Resi): $820-Flat Fee
(2) Business Loan (Com. & Rual) and Bank Bill Business
Loan: $820 + 0.6% on amounts greater than $100,000
(3) Product fee also apply		 n/a 0.25% of loan amount;
min. $1,500.00		 n/a
Pre Purchase Costs Loan set-up costs
– valuation
– lender’s legal fees
– title insurance
– stamp duty (where applicable)
– applicable government charges		 Amounts not stated but customer responsibility Loan set-up costs
– valuation
– lender’s legal fees
– title insurance
– stamp duty (where applicable)
– applicable government charges		 Customers may incur these other costs:
– property valuation ( quotation from panel
resi / comm. property valuer required)
– Preparation of loan and security documentation by an external panel solicitor
– Structure Compliance Costs incl. Vetting of Trust deeds and arrangements; confirmation of compliance with corresponding rules by an esternal panel solicitor
– Statement of Advice provided by a financial plan or accountant
– Statement of independent legal advice.
– Preparation of loan and security documentation by an external panel solicitor		 Customers may incur these other costs:
Completion of the Written Certification Proforma by your solicitor ($500 – §1,000)
Pre-purchase building inspection ($200 – $1,000)
Council building inspection ($100 – $400)
Suvey report ($400 – $1,000)
Pest inspection ($100 – $150)
Strata inspection report ($250 $350)
Break Costs NIL unknown Refer to existing product rules Applicable to Fixed Rate Lending Reimbursement of costs incurred
Early Close Out Fee NIL unknown Refer to existing product rules n/a $2,000
Security Deposit NIL unknown n/a n/a 20% of Vendors Price required as security deposit. Will not be fully refundable if sale falls through
Administration Fee NIL unknown n/a n/a 0.25% of loan amount, paid monthly
matrixtablehead7 Borrower Eligibility Complying SMSF. Minimum asset value of SMSF to be Property deposit plus $100,000 Complying SMSF Complying regulated super fund Complying SMSF unknown
Super Fund Creation Can be by customer or by Calliva n/a Customer responsibility or refer to NAB FP n/a no
Super Fund Trustee Up to clients
– individual
– corporate		 Must be a company Can be a company or an individual n/a unknown
Super Fund Contribution Deposits + costs n/a CPL: Balance of purchase price and costs
HL: Balance of purchase price		 n/a Balance of purchase price
Property Management can use own Property Manager however they must be licensed and otherwise satisfy Calliva standards in relation to qualifications and insurance (infers that Calliva does not provide the Property Manager) n/a to be arranged by customer n/a provided through Macquarie and Security Trust. Agreement is between the Customer, Macquerie, Sucurity Trust and Property Management company (MPL Property Managers)
Property Insurance Replacement value as stated by valuer n/a Existing rules to apply n/a Obtained by Macquarie and funded from Administration Fee
Property Maintenance
Costs		 Paid by SMSF n/a Customer responsibility n/a Paid by customer. Includes council rates, land tay, payment of utility providers, strata and body corporate fees, property management fees (7 to 10% of gross monthly rental income), ancillary fees for services provided by the Property Manager
Review of Property
Purchase Contract		 Part of process n/a Done by NAB as part of loan application n/a Mandatory using Macquarie panel solicitor
matrixtablehead8 Customer Choice of Security Trustee Yes. At the time to settlement, the initial trustee of the trust will be Calliva Nominees Pty Limited. Immediately following settlement the trustee will be transferred to customer’s nominee. As a consequence Calliva Nominees will need to sign the purchase contract and will do so on instructions from customer’s conveyancer or lawer. Yes, but not provided by Westpac. Yes, customer to establish their own Security Trust and appoint Trustee n/a No. Must use Macquarie Trustee
Security Trust Establishment $2750 n/a Customer responsibility n/a Done by Mcquarie
Security Trust Trustee Anyone or any company that customer nominates other than the trustee of customer’s super fund. Must be a company. To be nominated by customer. Can be a combany or an individual. n/a Macquarie Property Lever
Legal Assessment of Trust Deeds Not required for Security Trust deed as Calliva provides this product. SMSF Trust Deed and the Property Trust Deed must be perused by Westpac’s ecternel lawyers. Cost must be borne by the customers as an additional cost to fees stated above. As a guide fees will range from $2-$3k minimum and will increase based on the level of amendments required to amend the deed to enable the trust to participate in the SMSF opportunity.

 Reviewed by NAB legal services as part of loan application process. n/a Use Macquarie trust structure only. Done internally
matrixtablehead9 Other Points / Features No redraw, no line of credit. No redraw, no set-off. No redraw, no set-off, no capitalisation of interest, no refinancing, no splits or consolidations, no security swaps, no limit increase. n/a Insures against tenancy vacancy and loss or rent. Customers must get external legal advice. Pays trailing commission to adviser
matrixtablehead10 Transaction Time          
3rd Party Valuation + Trust Setup n/a n/a n/a  
Sale/Leaseback otherwise standard delays n/a n/a n/a n/a
Supporting Docs – evidence that the super fund is complying
– election to be regulated
– last 2 years audited returns SMSF only or
Accountans letter confirmed
1) complying fund
2) Assets fund
3) Member fund
4) (Logement Certificate)
– Bank statements, fund unit statements or share holding statements to confirm other assets
– contract for sale
– Lease(s)
– statement as to how you intend to fund the shortfall		 – SMSF Trust Deed (this is required to ensure that the
superannuation fund may borrow/mortgage).
– Before settlement, the Super Trustee will also need to provide a copy of the Property Trust Deed
– the Property Trust Deed must include provision for:
> the borrowed funds being applied for the acqui-
sition of the Purchased Property
> the Purchased Property is being held on trust for
the SMSF, and
> the SMSF has a right to acquire legal ownership by
making one or more payments AFTER having acquired
beneficial interest
– The Business Finance Agreement (BFA) is to be pre-
pared as a stand alone BFA for this facility and forwarded to Westpacs panel solicitor for review prior to deliver to the customer		 n/a – past three years Financial statements and tax return for the SMSF and related
business entities / members
– Proof on rental income/s
– Servicing must be demontrated by the SMSF from the property being purchased and other property held; other investment earnings of the SMSF, proven available members contributions		 n/a