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SMSF Loans

Invest In Your Future with Our SMSF Loans

Our SMSF loans are an excellent option for borrowers to grow their retirement nest and maximise funds. They can use their retirement savings as equity to purchase property. Our SMSF loans are also a perfect solution to refinance your existing residential or commercial property. You can leverage our SMSF loans to capitalise on a favourable real estate market and achieve your retirement and wealth goals.

SMSF Loans to Support Your Retirement Goals

We offer feature-rich SMSF loans at competitive rates to those looking to invest in properties through their SMSF. We enable you to borrow and invest in commercial or residential property using your SMSF. We provide loans to trustees of authorised regulated Australian SMSFs to purchase a property.

How Do SMSF Loans Work?

SMSF trustees can use their SMSF funds to borrow money to purchase an investment property that they cannot buy immediately because of a lack of financial capabilities. However, the purchased property must be held in a separate trust until the loan is repaid. Once the loan is fully repaid, an SMSF takes ownership of the certificate. An SMSF trustee can have a beneficial interest in the property purchased during the loan tenure. However, the income generated from the property will be reinvested in SMSF to repay the SMSF loan. You can also use the income earned to increase your loan value.

Types of SMSF Loans We Offer

  1. SMSF Residential Loans
    Our SMSF residential loans are offered to purchase or refinance residential investment property as a single asset within their SMSF. An SMSF trustee can use this loan to buy a house, apartment, or townhouse. However, the property must be held in a separate trust. We provide loan options that are structured to comply with ATO and align with your financial goals.
  2. SMSF Commercial Loans
    We offer SMSF commercial loans to let trustees borrow funds from their SMSF to invest in commercial properties. You can take SMSF loans to invest in retail spaces, offices, industrial warehouses, factories, breweries, cafes, restaurants, and other income-generating real estate assets. We offer effective SMSF loans that align with your financial goals. Our team provides tailored solutions after taking into account your individual needs.
  3. SMSF Refinancing
    Our SMSF loan refinancing solutions are ideal for those who took an SMSF loan when interest rates were higher or whose current financial condition has changed. We compare various loan options with your existing loan to match you with the most cost-effective loan.

Our SMSF Loan Features

Each loan comes with a different set of features. However, some of the most common features are given below.
Please get in touch with us to know what features are available on your chosen type of loan.
  • Purchase and Refinance
    We assist you in purchasing residential or commercial property using your SMSF. Our SMSF loans team also helps you refinance your existing loan to get more features or better rates.
  • Up To 80% LVR
    Our SMSF loans team can help you purchase with a 20% deposit. You will not require a Lenders Mortgage Insurance if your loan-to-value ratio is up to 80%.
  • Split Loan
    You can split your SMSF loan into two parts, one at a fixed rate and the other at a variable rate. It lets you leverage the benefits of both types of interest rates.
  • Fixed or Variable Interest Rates
    You can choose SMSF loans with a fixed rate. In it, the interest rate is locked for a specific period. Fixed rates give you certainty in repayments. On the contrary, variable rates fluctuate with market conditions. The interest rates increase or decrease according to cash rates. The repayments will rise when interest rates hike and vice-versa.
  • Flexibility
    You can use an SMSF loan on new or existing funds in Principal and Interest or Interest only options.
  • Unlimited Additional Repayments
    You can make unlimited additional repayments. This allows you to pay off your loan faster and save on interest.
  • Optional 100% Offset Facility
    You can lower the interest amount you must pay on your loan by linking an offset account to your loan.

How Much Can I Borrow Through SMSF Loans?

The SMSF trustees can use their superannuation funds to borrow money to purchase property. However, the government of Australia has imposed a limited recourse borrowing arrangement (LRBA) on SMSF loans. Moreover, you should hold the property you purchased in a separate trust. The reason is that in the event of loan default, the lender’s rights are limited only to the asset held in the separate trust.

It protects other assets within the SMSF from any liability. You can take an SMSF loan to borrow:

  • LRBA allows you to borrow up to 75-80% of the property value.
  • If you take an SMSF commercial property loan, an SMSF can borrow up to 70% of the property value.

Does Your Investment Meet the Criteria?

If you are seeking an SMSF loan, then the property you are about to purchase:

  • Should pass the ‘sole purpose test’. The test requires that the investment is made solely to provide retirement benefits to fund members.
  • Must not be acquired from a member’s related party.
  • Neither fund members nor related parties of any fund member live on the property.
  • Must not be rented by a fund member or related parties of any fund members.
Need an SMSF Loan?
As experts in SMSF loans, we help you seamlessly navigate the SMSF borrowing process. We discuss your financial goals to help you find an SMSF loan that meets your needs. Our SMSF loans team analyses various products to determine the best loan option for you when investing in property through an SMSF. We handle the application process and make sure it complies with the government’s regulations and lender’s rules. Contact our SMSF loans expert to know more about SMSF loans.

FAQ's

Your borrowing power will depend on your financial situation and your chosen lender’s policies. In most cases, an SMSF can borrow up to 80% of the property’s value.
The benefits include potential tax advantages, diversification of your portfolio, protection of your assets, and direct control of your super investments.

To be eligible for an SMSF loan, you must either

  1. have an existing SMSF structure in place, or
  2. be in the process of creating an SMSF structure.

Moreover, you must be looking to invest either in commercial or residential property to be eligible for SMSF loans. Some additional requirements may also be applicable, such as liquidity requirements.

No, SMSF loans cannot be used to construct a building.
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