Invest In Your Future with Our SMSF Loans
SMSF Loans to Support Your Retirement Goals
How Do SMSF Loans Work?
Types of SMSF Loans We Offer
- 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. - 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. - 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
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.
FAQ's
To be eligible for an SMSF loan, you must either
- have an existing SMSF structure in place, or
- 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.