SMSF Loans

SMSF (Self-Managed Super Fund) loans are primarily utilized by individuals and entities looking to invest in property through their self-managed super funds. Here are some examples of who may use SMSF loans:

  • Self-managed super fund trustees: Individuals who manage their own super funds may use SMSF loans to purchase residential or commercial properties as part of their investment strategy. These borrowers typically have control over their investment decisions and seek financing options tailored to their specific needs.
  • Small business owners: Entrepreneurs who own businesses and have self-managed super funds may leverage SMSF loans to acquire commercial properties for their business operations. This allows them to use their superannuation funds to invest in property while potentially benefiting from tax advantages.
  • Real estate investors: Investors who wish to diversify their investment portfolios by including property investments within their self-managed super funds may opt for SMSF loans. These investors may choose residential or commercial properties as part of their long-term wealth-building strategy.
  • Individuals planning for retirement: Those nearing retirement age may use SMSF loans to strategically invest in property within their self-managed super funds to bolster their retirement savings. Property investments can provide rental income and potential capital growth, contributing to a more secure retirement.
  • Professionals seeking tax benefits: High-income earners or professionals may utilize SMSF loans to take advantage of potential tax benefits associated with investing in property through their self-managed super funds. This allows them to optimize their investment returns while managing their tax liabilities effectively.

Overall, SMSF loans provide a specialized financing solution for individuals and entities seeking to leverage their self-managed super funds for property investment purposes. These loans offer flexibility and potential tax advantages, making them an attractive option for those looking to build wealth and secure their financial future through property investments within their superannuation funds.

Loan Details

Purpose

Purchase Residential or Commercial

Loan Type

Full Doc

Borrower Type

Trustee for the Super Fund – Legal ownership must reside with a bare trust

Loan Amount

Up to $1,500,000 per security*

LVR

Up to 80%

Security Type

Residential
Commercial

Term

Up to 30 years

Rates

Indicative rates from 7.55%

Checklist

• SMSF loan always considered as Full Doc
• Serviceability of the loan can be demonstrated through rental income from the property, contributions to the super fund, and income of the superannuation fund
• All serviceability is tested through the SMSF, however if required, shortfalls may be assessed by a Full Doc assessment of the member’s income and expenses
* Loading on amounts over $1,500,000
** The above is for reference purposes only and is subject to credit approval and is subject to change at any time