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SMSF Loan Experts

It's not complicated when it's done right
Speak to one of our SMSF Loan specialists today 1300 781 680
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8 years ago, we saw the need in a growing market for lending experts who specialise in SMSF. Our team now combines years of experience through every aspect of self-managed super funds. Together, we organise more limited recourse borrowing arrangements (LRBA or SMSF loans) in a week than most other brokers or bank branches in a year. Here we share some of our insights as well as SMSF news with you.

Our expertise has been sought by and seen in Australian Broker, the Herald Sun, Money and Mamamia.

Make sure you get the right SMSF lending advice. Send us a message or call SMSF Loan Experts on 1300 781 680.

FREQUENTLY ASKED QUESTIONS

These are some of the questions we're commonly ask by new clients.

Have a question that's not answered here?

Make sure get the right answers -
Send us a message or speak to an SMSF expert 1300 781 680.

Can a SMSF borrow money? Expand

Yes, but only for the purpose of acquiring an investment asset and through a limited recourse borrowing arrangement (LRBA).

What’s a Limited Recourse Borrowing Arrangement (LRBA)? Expand

Your SMSF can buy real estate by borrowing money through what’s called a limited recourse borrowing arrangement or LRBA. The trustee then uses those funds to purchase a single asset (or collection of identical assets that have the same market value) to be held in a separate trust.

Any investment returns earned from the asset go to the SMSF trustee. Should the loan default, the lender’s rights are limited to the asset held in the separate trust, safeguarding the other assets held in the SMSF.

Unfortunately, many lenders now require a personal guarantee from the trustees. So while the assets and funds in the SMSF are protected, the lender can gain access to the trustees’ personal assets.

Can an SMSF borrow to build? Expand

No. It wouldn’t be compliant with the ATO borrowing rules and there are no lenders offering progress payment options for SMSF loans.

Can a SMSF use equity in a property already owned as a deposit to purchase the next property? Expand

Unfortunately not. The only way to access and use the equity in an existing property would be to sell it.

Why are SMSF loans more expensive? Expand

Under current legislation, lenders are required to hold more capital for SMSF loans than they do for standard residential loans. These loans are more costly to the lender, who in turn passes the costs on to the SMSF.

How much can my SMSF borrow? Expand

80% for residential loans and 75% for commercial loans.

What is a liquidity requirement? Expand

Some lenders require that not all of the liquid asset (cash or shares) in the SMSF be used to purchase a property and impose a minimum requirement. For example, they may require the SMSF can still show 10% of the property value in either shares or cash after the settlement of the property.

 

Why do SMSF loan take longer to settle? Expand

Delays often relate to the time it takes to legally assess the two trust deeds, but lenders continue to improve settlement timeframes.

Can an SMSF get a pre-approval? Expand

Absolutely! We can even arrange for one of our lenders to give you an SMSF loan pre-approval before your SMSF has been setup.

What is a personal guarantee? Expand

SMSF loans are called LRBAs (Limited Recourse Borrowing Arrangements). LRBAs are No Recourse loans, which means the lender has no access to other assets owned by the SMSF in the event of a default. To get around this, banks require the trustee(s) to personally guarantee the LRBA.

Can SMSFs get interest only loans? Expand

Yes, for up to 5 years.

Can SMSFs get fixed rate loans? Expand

Yes, for up to 5 years.

Can you assist with standard lending? Expand

Absolutely. We specialise in SMSF loans, but continue to assist many clients across all forms of lending:

  • Refinance loans
  • Home purchase loans
  • Construction loans
  • Debts consolidation loans
  • Personal loans
  • Low doc loans
  • Bad credit loans

Want to start a SMSF, or borrow money in your current SMSF?

Make sure you get the right SMSF lending advice. Complete the contact form below or call us
on 1300 781 680.







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    Melbourne Office

    Suite 2, 54 Davis Avenue
    South Yarra VICTORIA 314

    1300 781 680
    SMSF Loan Experts is an authorised credit representative (CR No. 471777) of Australian Finance Group Ltd (Australian Credit Licence No.389087). Copyright © 2021 SMSF Loan Experts | Privacy | Site by Matt Angel
    • Call 1300 781 680
    • Home
    • Is This You?
      • I Don’t Have An SMSF, but I’d Like One
      • I Have A SMSF Already
      • Back
    • How We Help
      • Residential SMSF Loans
      • Commercial SMSF Loans
      • SMSF Setup
      • SMSF Refinance
      • SMSF Lending Strategy
      • Bad Credit SMSF Loans
      • NDIS Property Investment
      • Back
    • Client Reviews
    • FAQs
    • News
    • About
    • Enquire Now