SMSF Loans
Purchase Using Your Super
Investing in property through your Self-Managed Super Fund (SMSF) can be a powerful way to build wealth for retirement. SMSF Loans allow you to leverage funds in your superannuation to purchase residential or commercial property.
Why Consider an SMSF Loan?
SMSF Loans are designed specifically for using your superannuation to invest in property. They provide a way to grow your retirement savings while diversifying your portfolio.
Many investors use SMSF Loans to purchase commercial property, residential investment property, or refinance existing SMSF loans. By accessing these loan options, you can align your investment strategy with your long-term financial goals.
Understanding Borrowing Capacity
When applying for an SMSF Loan, lenders consider factors such as your fund’s balance, income, expenses, and the loan to value ratio (LVR). Typically, SMSF Loans require a lower LVR than standard home loans, meaning a larger deposit may be needed.
Our team helps you understand your borrowing capacity and prepares a clear plan so you know exactly how much your SMSF can borrow.
Interest Rates & Repayments
SMSF Loans can have fixed or variable interest rates, and your choice will impact repayments. Some lenders offer discounts that may reduce your interest costs. We assess your financial situation, including your investment goals, to recommend the loan that best suits your SMSF.
Key Application Requirements
Applying for an SMSF Loan involves gathering several important documents, including a certified copy of your SMSF Trust Deed, Custodian Trust Deed, financial statements, and SMSF bank statements. Our brokers guide you through this process, helping to prepare a complete and accurate application that meets lender requirements and streamlines approval.
Property & Investment Considerations
Not all properties are suitable for SMSF purchase. Commercial properties, non-specialised residential investment properties, and certain special-purpose properties such as boarding houses are common options.
Stamp duty, potential capital gains, rental income, and ongoing costs must all be factored into your investment strategy. Our team provides personalised advice to ensure your SMSF investment is compliant and aligns with your financial objectives.
Limited Recourse Borrowing Explained
Limited Recourse Borrowing protects other SMSF assets by restricting the lender’s claim to the property purchased with the loan if repayments default. This structure ensures that only the property is at risk, not your wider superannuation savings.
Once the loan is repaid, the property belongs entirely to the SMSF, providing ongoing rental income or capital gains for your retirement fund.
Benefits for Business Owners
If you own a business, an SMSF can purchase a commercial property that your business leases, creating a dual benefit. The property purchased via the SMSF loan is held as security, protecting other fund assets, and generating potential rental income for the fund.
Why Work With JRW Finance?
At 25, I’ve built a property portfolio of five and counting. Working with brokers, accountants, and investors, I've seen firsthand how confusing and overwhelming the process can be.
That’s why I started JRW Finance - to make property finance clear, straightforward, and achievable for clients. I guide clients through processes I’ve experienced myself, tailoring solutions to their goals and helping unlock opportunities they didn’t think were possible.
Get In Touch
Ready to explore your refinancing options? Contact us today to discuss how we can help you reduce repayments, access equity, and make your home loan work smarter for you.
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