SMSF Loans

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SMSF Loans?
How Does It Work

What Types Of Property Can You Purchase

Residential

  • Off the plan
  • House and lan
  • Existing
  • Units and Houses

Confidential

  • Business premise
  • Investments

TYPES OF FUNDING

There are 3 three types of funding mechanisms

We can show you which solution suits you best and provide a financial plan via our advisory partner firm –Freedom Wealth tailored to your personal needs.

The SMSF Lending Criteria is complicated and getting harder to navigate. With over 11 years experience,we can help you navigate this space to acquire a property with the least amount of stress and worry

Lending policies for SMSFs vary between lenders, particularly in the way they assess your ability to repay the loan.

How Do Lenders Assess My Borrowing Capacity?

These are the 3 key things to consider

The main hurdle encountered by most SMSF applicants is proving that there is sufficient income in the trust to support the loan.

Typically, the banks will look at the current income of the trust based on its previous two years tax returns and will then assess
if that income plus the proposed rental income will be sufficient to service the debt.

Some lenders can also use the income of members or beneficiaries of the SMSF to support the application if a personal guarantee is provided.

SMSF Property Do’s And Don’ts

These are examples of SMSF property strategies that are harder to get funding for

You cannot sell a residential property you own or one a relative owns to your SMSF

You cannot renovate a SMSF property with a separate loan

You can buy commercial property and sell a commercial property you own to an SMSF funding is more expensive for commercial than resi property

SMSF Lending FAQs

When is an SMSF allowed to borrow money?

As the Trustee of your fund (SMSF), you control your own money and you decide how and where to invest. All your investments and bank accounts are in the name of your super fund. Yes, your SMSF fund requires a bank account through which you can pay administration fees, tax expenses, and any setup fees or receive any ongoing payments (super contributions, rent) associated with the assets you hold in your SMSF.

We don’t handle your funds or have access to your SMSF cash account. We receive a copy of the bank statement in CSV format to help us complete your administration work.

Can I open an SMSF If I am working overseas?

As the Trustee of your fund (SMSF), you control your own money and you decide how and where to invest. All your investments and bank accounts are in the name of your super fund. Yes, your SMSF fund requires a bank account through which you can pay administration fees, tax expenses, and any setup fees or receive any ongoing payments (super contributions, rent) associated with the assets you hold in your SMSF.

We don’t handle your funds or have access to your SMSF cash account. We receive a copy of the bank statement in CSV format to help us complete your administration work.

How many lenders are there in the market for SMSF’s?

As the Trustee of your fund (SMSF), you control your own money and you decide how and where to invest. All your investments and bank accounts are in the name of your super fund. Yes, your SMSF fund requires a bank account through which you can pay administration fees, tax expenses, and any setup fees or receive any ongoing payments (super contributions, rent) associated with the assets you hold in your SMSF.

We don’t handle your funds or have access to your SMSF cash account. We receive a copy of the bank statement in CSV format to help us complete your administration work.

When should I apply for an SMSF loan?

As the Trustee of your fund (SMSF), you control your own money and you decide how and where to invest. All your investments and bank accounts are in the name of your super fund. Yes, your SMSF fund requires a bank account through which you can pay administration fees, tax expenses, and any setup fees or receive any ongoing payments (super contributions, rent) associated with the assets you hold in your SMSF.

We don’t handle your funds or have access to your SMSF cash account. We receive a copy of the bank statement in CSV format to help us complete your administration work.

What are the approval timeframes for SMSF Loans?

As the Trustee of your fund (SMSF), you control your own money and you decide how and where to invest. All your investments and bank accounts are in the name of your super fund. Yes, your SMSF fund requires a bank account through which you can pay administration fees, tax expenses, and any setup fees or receive any ongoing payments (super contributions, rent) associated with the assets you hold in your SMSF.

We don’t handle your funds or have access to your SMSF cash account. We receive a copy of the bank statement in CSV format to help us complete your administration work.

What interest rates are available

As the Trustee of your fund (SMSF), you control your own money and you decide how and where to invest. All your investments and bank accounts are in the name of your super fund. Yes, your SMSF fund requires a bank account through which you can pay administration fees, tax expenses, and any setup fees or receive any ongoing payments (super contributions, rent) associated with the assets you hold in your SMSF.

We don’t handle your funds or have access to your SMSF cash account. We receive a copy of the bank statement in CSV format to help us complete your administration work.

How are SMSF loans serviced ?

As the Trustee of your fund (SMSF), you control your own money and you decide how and where to invest. All your investments and bank accounts are in the name of your super fund. Yes, your SMSF fund requires a bank account through which you can pay administration fees, tax expenses, and any setup fees or receive any ongoing payments (super contributions, rent) associated with the assets you hold in your SMSF.

We don’t handle your funds or have access to your SMSF cash account. We receive a copy of the bank statement in CSV format to help us complete your administration work.

SMSF Double Stamp Duty Risk

SMSF Property deals run the risk of triggering double duty. As the Bare Trustee owns the property, whilst the loan is in place, the super fund is only a beneficial owner. Once the loan is paid off, the property must transfer to the SMSF and the title of the propertymust be changed to the SMSF trustee.

If these arrangements are not attended to correctly, double duty may be imposed on the fundand its members when these steps are undertaken.

Stamp duty will be payable on the initial transfer from the property vendor and when the property transfers from the Bare Trustee company to the SMSF trustee company. Some lenders use their own custodian structure, so the transfer of title upon completion of the loan may also attract additional stamp duty charges! Unbeknown to the SMSF members. This highlights the importance of getting the right advice with these arrangements,
before selecting a lender.