SMSF Loans
SMSF loans are specialised loan products that allow self-managed superannuation funds (SMSFs) to borrow money for investment purposes.
SMSF loans are designed to help SMSF trustees borrow money to acquire investment properties they may not be able to afford outright using their SMSF funds.
If your SMSF is considering commercial property finance or refinancing an existing SMSF loan, our brokers can help you compare relevant options from our lender panel.
Why a broker
Why use Realloans Broker for SMSF Loans
Using a mortgage broker for an SMSF loan can be highly beneficial due to the complex nature of these financial products. SMSF loans are more intricate than standard mortgages, with strict regulations and requirements that can be challenging to navigate without specialised knowledge.
A broker experienced in SMSF lending can help you understand lender requirements and coordinate the application process. Trustees should obtain independent legal, tax and financial advice about SMSF compliance.
Two paths
Types of SMSF Loans in Australia
Realloans Australia can help eligible SMSF trustees compare commercial property finance and refinancing options from lenders on our panel.
At a glance
Self Managed Superfund Loan features
- Loan Purpose. Purchase or refinance of residential or commercial properties
- Repayment. Principal and Interest / Interest only (maximum 75%)
- Security type. Residential or Commercial. New or existing property
- Maximum loan term. 30 Years (5 Years Interest only available)
- Maximum LVR. 90% Residential, 80% Commercial
- Minimum loan amount. $50,000 for residential and $100k for commercial SMSF loan
- Maximum loan amount. 2 mil for residential and Up to 5 mil for commercial security
- Easy refinance solution. Yes, Clean credit, minimum 12 month loan satisfactory history
- Residential. Investment only
- Commercial. Investment or OO
- Offset account. Yes (higher rate applies)
What you need
SMSF Loan Document Requirement
To apply for a SMSF loan, you will need to provide the following specific documentation:
- Certified copy of the SMSF Trust Deed
- Certified copy of Custodian Trust Deed
- Financial information to ensure serviceability (e.g. 2 years SMSF audited financial statements, 12 months SMSF bank statements, rental estimates)
- Full copy of contract of sale
Rates & structure
SMSF Interest Rates
| LVR | Interest Rates for Residential Property | Interest Rates for Commercial Property |
|---|---|---|
| ≤ 70% | 7.19% | 7.74% |
| LVR > 70% to ≤ 80% | 7.49% | 8.14% (≤ 75% LVR) |
| LVR > 80% to ≤ 85% | 7.89% | – |
| LVR > 85% to ≤ 90% | 8.19% | – |
SMSF Acceptable Properties
- Residential – House, Townhouse, Unit, Apartment
- Commercial – Office, Industrial, Retail, Boarding House
SMSF Loan Liquidity requirement
Most lenders require the SMSF to maintain 10-20% of the property’s value in liquid assets (cash/shares) after settlement or a fixed cash amount must remain in the SMSF after the investment property is purchased.
For example, on a $500,000 property purchase, the SMSF may need to keep $50,000-$100,000 in liquid assets.
At Realloans, we have access to SMSF lenders that does need has liquidity requirement meaning you can borrow the total amount you need without any liquidity restrictions.