Banks are starting to listen to the banking regulator by changing their policies in terms of the way banks look at investment property lending. Some banks have recently stated they will limit the discounts offered for investment loans. CBA, ANZ and NAB issued notices yesterday that heavier interest rate discounts will lean towards owner occupied loans and not investment property loans.
Beyond that, St.George Bank boldly changed their policy on Self Managed Super Funds (SMSF). From, 18 May 2015 the Self-Managed Super Fund (SMSF) lending policy for St.George Bank has been amended to include a liquidity test requirement, in order to determine whether the SMSF has sufficient liquid assets held after settlement of a property purchase.
The level of liquid assets to be held in an SMSF, after settlement of a property purchase must be a minimum of 10% of the total SMSF assets. Liquid assets can be held in the form of shares, cash deposits and government bonds.
If the minimum requirement is not met within the SMSF, additional funds or assets held by the directors/members in an APRA regulated Superannuation Fund or demonstration of ability to make future super contributions can be considered.