Self Managed Superfund Loans for Residential Properties
There are significant rules and regulations in place to govern the management of your superannuation in order to protect your retirement savings. Until recently for instance it was not possible for a superfund to borrow funds for investment purposes. This ban has now been lifted and superfunds, including self managed superfunds, are able to borrow money to directly purchase real estate or shares in order to further the investment portfolio of the fund.
- 80% loan to value ratio (LVR) on residential investment properties
- No minimum balance in the super fund
- Some credit impairment accepted (on the guarantor member’s credit report)
- Assistance with setting up the SMSF fund and Trust
| Loan purpose | Investment purposes only. |
| Loan term | 10 > 30 years. |
| Interest type | Variable rate. |
| Repayment type | Principal & interest, or interest-only up to 5 years then principal & interest. |
| Repayment options | Monthly, fortnightly or weekly. |
| Repayment method | Direct debit only. |
| Maximum Loan to | 80% LVR |
| Credit history | Past credit impairment can be considered at higher rates and fees |
| Minimum equity | No minimum net asset requirements. We recommend that you seek independent financial advice |
| Minimum loan size | $30,000 |
| Acceptable guarantors | All adult members and associated trusts. |
| Serviceability | Acceptable income may include superannuation contributions and any SMSF income [rental income is acceptable at 80%). |
| Security type | House, townhouse or unit within acceptable locations |
| Income Verification | Documentation required to verify income for all SMSF members. Self-employed members without tax returns can be considered at higher rates and lower lvr. Superannuation contributions by SMSF members for current and previous years will need to be confirmed. |
| Existing SMSF | Where an SMSF already exists, constituent documents will also be required. |
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