SMSF lending and refinancing through the eyes of a lender

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  • Investment standards

National Conference 2024

This session will address the complex landscape of SMSFs entering and re-financing Limited Recourse Borrowing Arrangements (LRBAs) from the perspective of the lender. Richard will also cover critical areas such as funding interest rate fluctuations, refinancing and discharging a loan as well as the practical issues faced by SMSFs as they navigate the super laws. Attendees will gain insights into the risks associated with defaults, guarantees, operating offset accounts, redraw facilities and much more. The session will equip professionals with the tools to navigate these challenges effectively, ethically, and in compliance with current regulations.
 

Following this session you will be able to:

  • Understand the intricacies of entering and refinancing LRBAs from a lender’s standpoint, including funding strategies to manage interest rate volatility.
  • Acquire practical knowledge on managing the refinancing process, loan discharge procedures, and navigate the legal requirements for SMSFs.
  • Identify and assess the risks associated with loan defaults, guarantees, and the use of offset and redraw facilities in the context of SMSFs.
  • Develop a toolkit for implementing ethical lending practices that align with the law and effectively support compliant LRBAs.

The contents of this resource are taken to be correct at the time of publication.

Disclaimer: Technical Papers contain general advice only and are prepared without taking into account particular objectives, financial circumstances and needs. The information provided is not a substitute for legal, tax and financial product advice. Before making any decision based on this information, you should assess its relevance to the individual circumstances of your client. While the SMSF Association believes that the information provided is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this bulletin is not considered financial product advice for the purposes of the Corporations Act 2001. © SMSF Association