Re: SMSF legislative changes

“Brokers must accept that a new world has arrived in regard to SMSF residential lending.

Along with borrowers we must adjust, as this legislation along with changes to negative gearing and CGT have now been rushed through parliament with no industry consultation.

The FBAA warned against these changes and while we hope our predictions don’t come true, there is already confusion and distress. There is a strong likelihood that both homeowners and renters will incur losses and higher prices as a result of legislation that won’t help solve the housing crisis in any meaningful way.

Specialist lenders in this field are doing what they can to support brokers and borrowers through these changes. While all new residential lending and limited recourse borrowing arrangements are effectively dead from August 10, opportunities for SMFS commercial lending remain as well as residential refinancing opportunities where appropriate through the grandfathering provisions enacted. 

As always, finance and mortgage brokers will be at the forefront of helping borrowers through these changes, and my advice to brokers is to be proactive and contact affected clients. Impacted clients will rely on the trusted assistance and guidance offered by brokers more than ever before.”