• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

SMSF Loan Experts

It's not complicated when it's done right
Speak to one of our SMSF Loan specialists today 1300 781 680
  • Call 1300 781 680
  • Home
  • Is This You?
    • I Don’t Have An SMSF, but I’d Like One
    • I Have A SMSF Already
  • How We Help
    • Residential SMSF Loans
    • Commercial SMSF Loans
    • SMSF Setup
    • SMSF Refinance
    • SMSF Lending Strategy
    • Bad Credit SMSF Loans
    • NDIS Property Investment
    • One-part contract
  • Client Reviews
  • FAQs
  • News
  • About
  • Enquire Now
You are here: Home / SMSF Loans / Refinance SMSF Loan: Your Questions Answered + How to Get Approved

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.

SMSF property loan got approved

Refinance SMSF Loan: Your Questions Answered + How to Get Approved

December 1, 2020 By Yannick Ieko

Refinancing your SMSF loan could save you thousands of dollars and could potentially add up to hundreds of thousands by the time you are ready to retire. We address the top concerns regarding SMSF loan refinance.

Eligibility Criteria to Refinance SMSF Loan

For SMSF loan providers to consider offering finance to SMSFs, the fund must meet certain eligibility criteria.

Existing Loan

When it comes to your current loan, lenders will want to see that it is more than one year old and the repayments have been made on time in at least the last six months. If your existing product is with La Trobe it’s possible it could have prohibitive exit costs which basically means you’re unable to refinance your SMSF loan for usually the first five years.

Property Details

Don’t worry if your property is not a flash office in a metro location; Most types of properties and locations are acceptable for refinancing. The decision is up to the SMSF lender, but generally speaking, if you have a current loan then you shouldn’t have an issue with refinancing based on the property location or type.

New Loan

When refinancing an SMSF loan, you are eligible for an amount that covers the existing loan balance as well as the refinance costs. It is not possible to release equity through refinancing.

The new loan cannot be any more or any less than the current amount and will have a term of 30 years with the option to go interest-only for up to five years.

To be eligible to refinance, the amount must be less than 80% of the property value for both commercial and residential.

Liquidity requirement

Lenders generally want an SMSF to hold around 10-20% of the property value in cash for liquidity purposes. For SMSF loan refinance, liquidity requirements can usually be waived or mitigated, and are not proving to be a barrier to refinancing your loan.

For any funds that are holding a significant amount in cash reserves, you may be interested to know that through refinancing, you can gain access to an offset account. With the cash rate at a record low, the rate of return on cash assets is next to nothing. With an offset account, you can use your cash reserves to reduce the amount of interest you pay on the debt.

Refinance SMSF Loan

Why Refinance SMSF Loan?

An SMSF loan refinance could be an effective way to save thousands and have more money to put toward your retirement. Refinancing also allows you to choose a product with better features such as an offset account to provide more flexibility and a favourable financial outcome.

SMSF Loans Interest Rates

SMSF loans interest rates are often a primary motivator for looking to refinance. Rates are low at the moment, so it’s a great time to reassess your situation to see if you could potentially save money — we’re willing to bet that you can probably save thousands!

The interest rates available depend on your loan to value ratio (LVR). The lower the LVR, the lower the risk to the lender, resulting in a lower rate for you. But a high LVR doesn’t mean you’ll be paying a high interest rate. The current economic climate means that all SMSF loan rates are really attractive at the moment — even for LVR’s up to 80%!

We can help you access products with great interest rates and fees that are lower than the industry standard. Some outstanding products currently available are:

  • ➤ Residential purchases and refinances up to 60% LVR
    • ➢ 4.69% p.a. variable rate 
    • ➢ 100% offset account
    • ➢ Fees lower than the industry standard
  • ➤ Residential purchases and refinances up to 80% LVR
    • ➢ 5.2% p.a. variable rate
  • ➤ Commercial purchases and refinances up to 45% LVR
    • ➢ 4.4% p.a. variable rate
  • ➤ Commercial purchases and refinances up to 60% LVR
    • ➢ 5.09% p.a. variable rate
    • ➢ 100% offset account
  • ➤ Commercial and residential purchases and refinances up to 80% LVR
    • ➢ Attractive interest rates
    • ➢ Competitive fees
    • ➢ 100% offset account

In some circumstances, it is possible for us to negotiate even lower rates than those listed above. Please get in touch to find out if you’re eligible.    

How to Get Approved

As a start, ensuring you meet the eligibility requirements greatly improves your chance of being approved. Further to this, we offer a groundbreaking refinance service offering our expert knowledge that could save you thousands. We’re not called SMSF Loan Experts for nothing! SMSF borrowing can be complicated and confusing. We make the process stress-free and straightforward. Book in a time to chat with us, and we’ll make sure you’re getting the best deal available.

Filed Under: SMSF Loans

Primary Sidebar

Get in Touch

Have a question about SMSF Lending that you'd like answered? We'd love to hear from you. Send us a message or call us directly on 1300 781 680.







    Please send me important SMSF updates.

    Featured On

    Financial Review
    Business Acumen Magazine

    seven network logo
    Talking business podcast

    Australian Property Investor
    your life choices

    ultra 106five

    Recent Posts

    housing-increase

    What Does the Housing Price Increase Mean for the Future?

    There has been a residential property price boom across Australia over the last 12 to 18 months. According to the latest figures from the Australian Bureau of Statistics, Australian property prices grew by a whopping 23.7% in 2021. This is the third-largest annual increase on record. The highest was in 1950 when prices doubled after […]

    super-splitting

    How Your Relationship Status Can Affect Your SMSF

    If you have a self-managed super fund (SMSF), it’s important to understand the impact a relationship breakdown can have on your assets. Superannuation assets are considered to be property under the provisions of the Family Law Act, but they are treated differently from other assets. SMSF and divorce Unlike most other types of assets, super […]

    Your Questions

    Do you have a topic or question around SMSF Lending you'd like us to write about? You can simply send us a message letting us know what you'd like to hear from us on, and we'll do our best to address your question or topic in our upcoming posts.







    Download Our Investing in Property Inside an SMSF Guide

    The ultimate guide for anyone thinking about buying
    property inside their super fund including:
    The basics,
    the technical aspects,
    case study &
    how we help

    Marketing by



    ActiveCampaign

    Footer

    Quick Find Index

    SMSF Property Loans
    SMSF Commercial Loans
    Limited Recourse Borrowing Arrangements – LRBA
    Which Banks Give Loans To SMSF
    SMSF Setup
    Blog
    Sitemap

    Sydney | Melbourne

    Melbourne Office

    Suite 2, 54 Davis Avenue
    South Yarra VICTORIA 314

    1300 781 680

    Featured On

    Financial Review
    Business Acumen Magazine
    seven network logo
    Refinance SMSF Loan: Your Questions Answered + How to Get Approved
    Australian Property Investor

    YYJ Pty Ltd, ABN 20 119 205 999, T/A smsfloanexperts.com.au Australian Credit Licence: 530508. Copyright © 2022 smsfloanexperts.com.au | Privacy | Website Design 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
      • One-part contract
      • Back
    • Client Reviews
    • FAQs
    • News
    • About
    • Enquire Now