Self-Managed
Superannuation Fund Loans
Considering a Self-Managed Superannuation Fund (SMSF) loans? We can help.
Self-Managed Superannuation Fund (SMSF) loans provide an opportunity for individuals to invest their superannuation in the property market as an alternative to the equity market.
At Azura Financial, our goal is to educate our clients on the process of setting up an SMSF and investing in property. We strive to provide comprehensive information on the potential threats, expenses, and regulations involved, so that our clients are well informed and can make informed decisions.
Our team is here to answer any questions you may have and address any concerns you may have regarding SMSF loans.
What is an SMSF loan and how does it work?
A Self-Managed Super Fund (SMSF) Loan allows an SMSF to use its funds as a deposit to purchase an investment property and borrow the remaining amount required to fund the purchase. This can enable an SMSF to invest in properties that it may not otherwise have the funds to immediately purchase.
Depending on the lender, SMSF loans can be used to purchase residential, commercial, or rural investment property with interest-only repayment options. However, SMSF loans have strict requirements under superannuation law, and the establishment of a separate trust to hold the property is normally required.
It is recommended that a legal professional experienced in SMSF lending is engaged to set up the required structure for an SMSF loan.
What are the regulations for SMSF loans?
To secure an SMSF loan, the property must comply with the “sole purpose test,” which mandates that it must be solely for the purpose of providing retirement benefits to fund members.
Also, the property must not be acquired from a related party of a fund member, cannot be occupied by a fund member or their related parties, and cannot be rented out by a fund member or their related parties (for residential properties only).
How to prepare for an SMSF Loan?
When considering refinancing your SMSF loan, there are several important documents that you should gather to support your application. These documents may include recent statements from your Super Fund that demonstrate contributions, cash and investments, as well as proof of any rental income.
Additionally, you may need to provide evidence of previous independent legal advice, along with a six-month statement of the loan being refinanced. It is also important to have certified copies of your SMSF Trust Deed and Property Trust Deed ready for submission.
By having these documents in order, you can help streamline the refinancing process and improve your chances of success.
Contact Us
Interested in securing the best rates possible or need some expert advice to help you through the loan process?
Please send us an email or give us a call at any time, our team of experts are happy to help.
Tom and the team at Azura are brilliant – pro-active, responsive, always great to deal with. Wouldn’t contemplate working with anyone else. 5 stars.
Elia has been our broker for more than 5 years. Very easy to work with, no pressure, clear easy to follow instructions and even supported us to when we found a better rate on own too. Many thanks Elia.
Max and his team were fantastic. Explained everything clearly at every step of the way and always had time for my questions. Will absolutely be using Azura again in the future and would happily recommend anyone!
Tom and the team at Azura are brilliant – pro-active, responsive, always great to deal with. Wouldn’t contemplate working with anyone else. 5 stars.
Tom and the team are really amazing! They negotiated a much better rate than the bank was offering and has saved us thousands. They are located in Double Bay and are probably used to dealing with mortgages way bigger than ours but I never once felt like I was a lower priority. It was a really fantastic experience during a pretty stressful time.
I highly recommend Azura Financial. Tom, Felix and Jay made the financial process of buying a property super easy and seamless. They negotiated a competitive rate for me and completed my settlement paperwork really quickly! Will gladly work with them again in the future.
Have been using Azura Financial nearly 3 years, recently they helped us refinanced our property for further investment purpose. I’d recommend it to my friends, not only about the competitive interest rate, but also about their outstanding services. Especially one of their client managers who provided us an excellent finance solution and followed our case end to end.
I am a buyers agent and have referred to Max from Azura Finance many times. It was actually great to be on the other side and have him help me with my mortgages. We had a very complex set up which Max patiently explained in detail. Great communication and responsiveness and I’ve also saved thousands p/a on my 4 loans. Thanks Max I appreciate all your hard work!
Tom and his team have their finger on the pulse when it comes to everything finance. They are always one step ahead and keep on top of my finances so I don’t have to. His team offer a premium service and are very efficient. Couldn’t recommend more highly.