Self-Managed Super Fund (SMSF) Loans

Thinking about borrowing money through your super fund to cover the purchase of an investment property?

A self-managed super fund home loan could be the financial kick-start you’ve been searching for.

At Zenrg Finance, we help you access the best SMSF home loans to help you get ahead

What is a Self-Managed Super Fund (SMSF)?

A self-managed super fund (SMSF) is a superannuation trust structure that delivers retirement benefits to its members.

SMSFs can have one to four members and must be run for the sole purpose of providing retirement benefits for the members or their dependents.

The primary distinction between SMSFs and other types of super funds (such as retail or industry super funds) is that SMSF members are also trustees of the fund.

Although setting up an SMSF requires a lot of time and knowledge, it can offer much more choice and flexibility when it comes to your super.

Requirements for an SMSF

To qualify as a self-managed superannuation fund, the fund must:

• Be a superannuation fund

• Have up to 6 members

• Have each member as either an individual trustee of the fund or the director of a corporate trustee

Additionally, a member may not be an employee of another member (unless they are related), and no trustee or trustee director may be paid for working in this role.

SMSF Home Loans

An SMSF home loan is a loan used by a self-managed super fund (SMSF) in order to purchase an investment property. The investment's earnings - whether through rental income or capital gains – are reinvested back into the super fund, boosting your retirement savings.

SMSF Home Loan Restrictions

As with all types of finance, there are some restrictions regarding super fund home loans. For example:

• You can’t take out a loan for construction purposes. Your SMSF can pay for renovations out of its own funds for this but cannot use the borrowed funds.

• Purchasing a property intended to be lived in as your home using an SMSF is not allowed (owner-occupied business premises are acceptable).

• You cannot sell a residential property to your SMSF that you or a related party owns (commercial property is acceptable).

• Banks have liquidity requirements when you borrow for your SMSF, though some lenders are less strict than others.

• Very few lenders offer refinancing options for existing SMSF loans.

How Much Can I Borrow with an SMSF Loan?

The amount you can borrow for an SMSF home loan is determined by your financial situation as well as your lender's policies. Typically, applicants are able to borrow a minimum of $50-100k and up to 80% LVR.

Apply for an SMSF Home Loan Today

The experts at Zenrg Finance have a wealth of experience in providing self-managed super fund home loans.

Book a meeting with our friendly team today to discuss your options.