Grow your retirement nest egg faster by making smart investment choices. Investing in super-leveraged properties, for instance, can get you to your retirement savings goals faster and stronger than ever. An SMSF loan can be an advantageous factor when mapping out your fund’s investment strategy.

What Are SMSFs?

Self-managed super fund loans (SMSFs) allow you to borrow money for the purchase of residential or commercial investment property. The property will be held in trust under the SMSF up until the time that the loan is completely paid up.

If you already have your SMSF or are considering creating your own super fund, you will need a properly structured SMSF loan or loans. Without a structured and strategic plan, you might not be able to acquire a real estate asset for capital growth and return. You need to ensure that your SMSF is utilised properly.

Limited Recourse Borrowing Arrangements

SMSFs loans can also function as limited recourse borrowing arrangements (LRBAs). As a limited recourse loan, the recovery of your SMSF loan is limited to the security property. In the event of default, your other super fund assets stay safe and are far from risk.

The serviceability of the SMSF loan is manifested through several things. For example, it can come as the rental income from the investment property. It may also come as member contributions, ongoing income from other assets, help in self-managed funds, and so on.

With regards to the support of the SMSF loan, it will be shouldered by personal guarantee/s from the beneficiaries or members, confirmation from the SMSF trustee that the loan is in line with the fund’s investment strategy, among others.

Are you eligible?

Key Strategy Solutions has a team of SMSF loan brokers that can help you find the right lender. We cater to corporations and individuals who are borrowing for the following purposes:

1. To purchase a residential property as an investment

2. To purchase non-specialised commercial property for investment

For a full assessment, be sure to contact Key Strategy Solutions. Our specialists will help you determine your eligibility and find a way for you to meet the eligibility requirements if needed.

Can I refinance my SMSF loan or loans?

For refinancing from another financial institution, it is required that the institution must be an Australian Credit License (ACL) holder. The original property also remains in place as security. The trustee must be a corporate entity if the original loan to be refinanced was used to purchase a residential property. On the other hand, if the original loan to be refinanced was used to buy a commercial property, the trustee can either be a corporate entity or individual/s.

Ready to apply?

Ready to take the next step? We’d be more than happy to help! Here at Key Strategy Solutions, we have experienced brokers who can direct you to reputable lenders of SMSF loan or loans. We’re not only a trusted mortgage broker in Sydney, but we also help businesses and individuals get the most out of their self-managed super fund loans.

We are connected to over 200 SMSF loan providers. Connect with us and we can get your SMSF loan application in no time.