SMSF Borrowing

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At SMSF Loan Experts, we help by taking the time to understand your financial needs so that we can advise the most suitable lending strategy to meet your financial goals.

Investing in property within your SMSF can be complicated — and even more so when you choose to borrow to invest. You need a lending strategy that can work with your fund’s investment strategy without getting caught out by government legislation, tax implications or fees and charges. Our SMSF Loan Experts work with you to make an informed decision and provide expert navigation through the entire lending process.

If you’re looking at borrowing to invest in your superannuation, visit us to know some of the lending strategies that might be available for you.

How much can my SMSF borrow?

The amount you can borrow depends on whether you are looking to purchase residential or commercial property.

  • Standard SMSF residential investment loans typically offer up to 80% of the property value.
  • If you’re looking to purchase commercial property, most lenders will allow you to borrow up to 75% for properties that are non-specialised.

Is an offset account right for my SMSF?

SMSF Loan Experts will help you decide whether using an Offset facility should form part of your lending strategy. Offset Accounts can act as a type of savings account that helps to reduce your interest payments. It is linked to your loan account and can have the monthly mortgage repayments debited from it. The interest payable on your loan is calculated by subtracting the balance of your offset account from your loan balance — meaning you pay interest on a lower amount. In addition, an Offset Account can help keep cash available for future investments.

What are serviceability tests?

Similar to personal home loans, lenders for SMSF loans will assess whether you can service the loan repayments prior to accepting your loan application. The property’s rental income will form part of your serviceability test. We can help you with strategies to increase your borrowing capacity.

Source: SMSF Borrowing