We know that for our clients, financial freedom is paramount. As an essential partner in our clients’ team of professionals, that often includes an accountant, financial adviser and solicitor, we’re focussed on your goals.

Borrowing via an SMSF is complex and requires more oversight than normal lending. We will liaise with your other professional advisors to ensure the process is as straightforward as possible. Placing your trust in someone without a proven track record with the SMSF environment increases the risk to your financial freedom.

What is an SMSF loan?

An SMSF loan is a home loan used by a self-managed super fund (SMSF) to buy investment property. The returns on this investment – whether that’s rental income or capital gains – are funnelled back into the super fund, increasing your retirement savings.

Investing in property within superannuation is not as straightforward as investing outside the superannuation environment. All investments need to be in the best interests of fund members and in accordance with the laws around SMSF borrowing. As such, any property investment should have an income stream and realistic prospects for capital growth.

We can help you to apply for: 

• Standard SMSF Investment Loans: Up to 80% of the property value. However, please note that most lenders will restrict your loan up to 75% of the property value.
• Discounts: Most lenders add a margin to their normal residential loan rates for SMSFs, however these margins vary significantly. Contact us for best offers.
• Low doc (no income evidence): SMSF low doc loans are available although there are many restrictions.
• Standard investment loan rates may be available: Your SMSF structure must meet certain criteria.
• Unusual security or income types: There are specialist lenders that can help.

Are there any restrictions?

There are restrictions on SMSF loans which prevent some transactions from taking place. For example:

• Construction loans may not be available. The SMSF is able to pay for renovations out of its own funds, but can’t use the borrowed additional funds for this purpose.
• Refinances/Redraw of Equity inside existing SMSF loans may not be available
• Buying a property in your SMSF that you intend to live in (owner occupied business premises are acceptable).
• Selling a residential property to your SMSF, that you or a related party owns (commercial property is acceptable).

Terri Jones

Use the variety of calculators below for easy things like budget planners, savings goals calculators and income tax calculators; or to work out the stamp duty on your next property purchase, or browse our borrowing power and loan repayment calculators.