SMSF Residential Loan


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SMSF Residential Loan Overview

Are you part of it or setting up new account? Are you borrowing money to purchase new property?


How much loan can I get?

The amount that you can borrow varies from lenders to lenders.

  • 72-75% for Standard loans
  • If you have strong financial position you can borrow upto 80%
Am I eligible for SMSF Loan?

If your loan is secured against your home loan you are not eligible for SMSF loans as government restricts the lender from recourse against the other assets of the trust in the event that a property needs to be sold.

What is Lending criteria?

For borrowing any loan you need to enough income to support your loan.

Banks will typically check current income of the trust based on its previous two years tax returns and will then assess if that income plus the proposed rental income, will be sufficient to service the debt. New lenders will access the current income of beneficiaries, their old and current super contributions.

Loans may be declined if they require payments in excess of the initial contributions.

What is Security Custodian?

The role of the security custodian is to hold onto the property for the SMSF, until it is paid out and can be transferred. Some banks use their own Security Custodian company.

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