An SMSF (Self-Managed Super Fund) loan could be your key to achieving your retirement goals. SMSF loans allow you to use your superannuation to invest in property, potentially enhancing your retirement portfolio. Here’s what you need to know to get started.
Investing in property through your SMSF requires careful planning. It’s essential to consult with a lending specialist who has extensive experience in SMSF loans.
Our team of experts are highly experienced in establishing lending for property portfolios through SMSF’s. We understand the pitfalls and challenges when establishing an SMSF and we work closely with your team to ensure everything happens in the correct order and at the right time.
If you’re a business owner, you could lease your SMSF-purchased commercial property back to your own business, creating a dual benefit.
Only the property purchased with an SMSF loan is used as security, safeguarding your other SMSF assets.
Investing in property through an SMSF comes with specific usage restrictions. Additionally, each lender may have unique conditions and requirements for their SMSF loans.
Starting your journey with a Your Loan Store finance and mortgage broker can help you understand the next steps and navigate the complexities of SMSF property investments.
We assist SMSF borrowers looking to:
Purchase commercial property
for their business.
Refinance their existing
SMSF loan.
Invest in property to generate
retirement wealth.
Residential Investment:
Single title properties.
Commercial Properties:
Office, Industrial, Retail.
Special Properties: Boarding houses or rooming houses (single title).
80% for residential, 75% for commercial properties.
Up to $4M for both residential and commercial properties.
Up to 30 years, with interest only available for up to 5 years.
Available to corporate trustees only.
Lenders vary widely in what is required here. We can offer you advice depending on your individual situation.
Rental income from investment property can be used to help with servicing the loan.
We have a range of lenders that will allow us to refinance your existing SMSF loan to get a better interest rate, helping you to reduce the overall costs of investing in property through your SMSF.
Do I have to have funds remaining in my SMSF after the purchase of a property? In some cases you will and some cases you may not. We can help find the lender to suit your particular set of circumstances.
The ATO will require you to have ’non-arm’s length lease agreements’ for commercial property purchases.
Want to make top-up contributions? Some lenders do allow for servicing the loan where contributions are above the compulsory amount and are affordable and from recurring income streams.
Some SMSF loan products allow redraw, but conditions apply. Generally, redraw is only permitted if the extra repayments are not needed to meet the original loan schedule and if the fund’s liquidity position remains strong.
Borrowing within an SMSF involves strict conditions known as a ‘limited recourse borrowing arrangement’ (LRBA). Your financial planner will help you to ensure you’re investing in property that aligns with your SMSFs investment strategy and risk profile. We can help you to find a financial planner that has the right expertise in the SMSFs, if you need one.
Some lenders offer refinancing options for SMSF loans, which can be beneficial if your financial needs change or if you face repayment challenges.
Having the right team of experts to support you is crucial. We have access to a highly experienced team that will assist you to put all the building blocks in place at the right time to ensure your property investment is set-up correctly, and is compliant with ATO regulations. SMSF loans can be complex due to Australian superannuation and taxation laws. You need an existing SMSF, and it’s recommended to seek independent financial, legal, and tax advice before applying.
Learn about the initial deposit needed. Lenders vary in their requirements depending on the type of property you are purchasing, the location of the property and the funds currently available in your SMSF.
Understand all associated costs and will help you cover these costs through your SMSF funds so you don’t have to fund these costs directly out of your own pocket.
We can help you to ensure all necessary documents, like trust deeds, are established through your accountant. There is a lot to do here and our team of brokers will liaise closely with through your accountant meaning you won’t have to!
We provide our expert services free of charge to you. We are paid to assist you by the lender your loan is with. They all compensate us pretty much the same, meaning we are free to be your advocate all the way through the process and will ensure you are getting the best loan available in the market. The only lender preference we have is the one that gives you the best deal!
Your privacy is guaranteed. We focus on solving your loan, not selling your data.
Leave your details and one of our brokers will be in touch to answer your questions, discuss your goals, and guide you through your next steps.
The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances. Terms, conditions, fees and charges may apply. Normal lending criteria apply. Rates subject to change. Approved applicants only.
There may be occasions where you may be charged a fee by your broker.
Your broker is able to assess each lender’s approval times and identify those that can provide approval quickly, however this is subject to change and can vary significantly based on how complex is your loan application and how quickly you’re able to provide the information we need.
Not all lenders are available to all brokers. The exact details of the lenders your broker has access to is disclosed within the Credit Guide your broker gives to you when providing credit assistance or is available upon request.
The way in which your broker will stay in touch with you will differ, however typically this will be via email. In addition you will be able to contact them for guidance as required. You are able to opt out of these communications at any stage.
