Getting the right SMSF loan

We have access to the most extensive range of SMSF lending products and services
The loan secured against the property asset to be purchased needs to be structured so that there is no recourse to the other assets of the SMSF.  
This structure requires a trustee independent of the SMSF trustee to act on behalf of the SMSF to execute the purchase and mortgage documentation.  The SMSF remains the beneficial owner.
Finance providers have responded to the new legislation and brought out loans that are appropriate to the needs of SMSF borrowers.  However, the marketplace is not yet at 'full maturity' with new Lenders still entering and existing Lenders regularly reviewing their Products and processes - some exiting the market (or removing certain products) - and in some cases, exiting and then re-entering.
SMSF Loans will facilitate your funding approval and co-ordinate your transaction from initial enquiry through to settlement.
We will assist you to identify the loan product and structure to suit the requirements of your gearing level, contributions / cash flow, investment strategy and property type (residential / commercial / rural).
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Features of a SMSF Loan
  • It's a simple loan not some complicated Instalment Warrant document or arrangement
  • We can offer choice as we are a specialist broker i.e. We have access to every solution available in the market
  • It complies with the requirements of the SIS Act s67 (A) and so is a permitted borrowing
  • Key differences to normal residential or commercial loans
  • Limited Recourse (meaning the lender's recourse to the assets of the fund is limited to recovering the secured real property asset only)
  • Legal title is held by the Security Trustee (Bare Trustee) while there are borrowings in place
  • The SMSF is the 'Beneficial Owner' until the loan is paid out and then has the right to acquire legal title
  • The SMSF Trustee has effective day to day control of the property
  • It is a Loan to the SMSF to fund the acquisition of eligible income producing real property. Please note there is currently:
  • No construction / development
  • No Vacant land (except income-producing rural land)
  • Loan to value ratios up to 80% for residential property and 70% for commercial property depending on your scenario and the lender selected
  • Up to 30 Year loan terms for residential property and up to 25 year loan terms for commercial property
  • Principal and interest or interest only loans available.  Interest only periods up to 15 years depending on Lender and loan structure
  • Variable interest rate or fixed rates depending on the Lender selected
  • The ability to make additional payments (may be limited during fixed rate periods).  N.B.  No redraw available.
  • You can pay out the loan at any time (may be break costs during fixed rate periods)
  • No personal guarantees required dependent on lender and product selected.  May be dependent on LVR and / or Fund performance
  • No personal credit assessment required by some lenders subject to the SMSF debt servicing by rent and historical Fund performance and / or Super contributions
  • If structured correctly there should be no impact on borrowing outside Super whether for business or domestic purposes