SMSF Home Loans
- Available Australia wide, 7 days a week
- Negotiation power for lowest interest rates
- Experienced team with expert knowledge
- Priority status with banks for quicker outcomes
Looking to use your SMSF to buy a property?
How Zenith Financial Can Help
An SMSF loan is a complex financing solution that requires more parties, time, and strategic planning than a standard home loan. In these situations, partnering with mortgage brokers who have access to a wide range of lenders and exclusive rates in SMSF home loans is essential.
At Zenith Financial, our mortgage brokers will guide you through every step of your loan application, helping you prepare all necessary documents to maximise your borrowing power and enhance your chances of approval.
Note that many lenders have withdrawn from SMSF lending since 2018, but many non-bank lenders still offer these loans to qualified applicants. Unlike standard home loans with very slight variations between lenders, expect SMSF home loans to have massive differences so it makes sense to compare all your options before choosing a lender.
I have an SMSF. Can I use it to take a loan?
Self-managed super funds may be used to obtain a loan and purchase property for personal residence or investment purposes in accordance with the Superannuation Industry (Supervision) Act 1993. This includes the acquisition of residential properties, commercial assets, or even vacant land intended for future construction.
However, unlike typical home loans, you can only borrow using your SMSF under limited exceptions under the limited recourse borrowing arrangement (LRBA).
To best understand how you can best leverage your SMSF to purchase property, contact our experienced mortgage brokers today at 1300 312 712.
How much can I borrow with an SMSF home loan?
The amount you can borrow depends on your financial circumstances. Discuss your financial situation and long-term goals with us and discover your SMSF home loan options, including:
- SMSF Investment Loans up to 80% loan-to-value ratio (LVR)
- SMSF home loan discounts from banks and non-bank lenders that are otherwise inaccessible with standard home loans.
When assessing your current borrowing power, SMSF home loan policies and structures will vary across banks and non-bank lenders.
What are some limitations of SMSF home loans?
SMSF loans are specialised loans that work under a limited recourse borrowing arrangement. That said, it can have restrictions that are otherwise available in standard home loans, such as:
- Many banks and lenders prohibit using borrowed money from your SMSF to pay for renovation or construction.
- Purchasing a residential property where you’ll reside under the SMSF is prohibited.
These restrictions are mostly due to superannuation regulations and not due to lender jurisdiction. However, some lenders may accept owner-occupied investment properties for business or private practice.
We highly recommend speaking with our mortgage brokers to thoroughly understand SMSF home loans and how to maximise the loan as an investment route. That includes fully understanding the policies, benefits, and risks and going through excellent options from our panel of 50+ lenders.
What is a Bare Trust in SMSF Home Loans?
In a typical SMSF home loan arrangement, your chosen lender will lend the money to you or the SMSF trustee.
However, the trustee is not the legal owner of the property in question. Instead, it will be purchased and held in a custodian or bare trust structure. The bare trust will hold the legal title, while your SMSF will benefit from any income the property generates (assuming it’s used as a rental property).
When you borrow under the SIS Act 1993, the SMSF trustee and trustee for the bare trust must arrive at a common agreement. We highly suggest seeking legal advice or speaking with your accountant.
Your bare trustee must also be the company itself or a company director since lenders will consider the company’s profit or the director’s income to determine whether the super fund can accommodate a home loan.
Once the loan has been fully repaid, you can transfer the property’s legal ownership to the SMSF trustee.
How can I get approved?
Different banks and non-bank lenders have varying criteria and processes to assess your SMSF home loan application. Discuss your financial goals and situation with us so our brokers can provide you with the most suitable advice.
Contact us at 1300 312 712 and fill out our assessment form.
Our Lenders
SMSF Home Loans FAQs
Unfortunately, the property you’ll purchase and the SMSF home loan must be under the trust’s name. However, as the SMSF trustee, you will be responsible for managing the property.
Contact us at 1300 312 712 to learn more about SMSF home loans, and we’ll gladly discuss your options.
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Having encountered thousands of different scenarios, our team is well equipped to find you suitable solutions. Having the right mortgage broker by your side is essential to ensure you are getting the absolute best deal for your unique situation.
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Your success is our success
We understand everyone’s circumstances are different and we take the time to understand you and your goals. We value forming lifelong relationships with all our clients and we are fully committed to adding value every step of the way.
We know that mortgages can sometimes be complex and hard to understand. We focus on simplifying the process for you and we treat your loan as if it were our very own. Let us do what we do best so there’s one less thing for you to worry about.