APRA warns on SMSF mortgages

Thursday, 17 January 2013

From the AFR:

The prudential regulator has told banks that they must not treat home loans to self-managed superannuation funds in the same way they do regular mortgages.

In a letter sent to banks and building societies on Thursday, the Australian Prudential Regulation Authority says that lenders must treat mortgages taken out by self managed funds as “non-standard” and consequently must apply an “appropriate risk-weight”.

There’ll be a much more to come on this baby…

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.