How much can an SMSF borrow to buy an investment property?
SMSF loans generally allow up to 80% LVR and 30-year loan terms, with up to five years of interest-only repayments. The minimum loan amount is $50,000 up to a maximum loan amount of $1,000,000, subject to approval of the property and the borrowing capacity of the fund.
There are some advantages of borrowing money through your SMSF.
It allows for diversification of the investments.
You receive tax benefits on interest.
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Home loan FAQs
A Self-Managed Super Fund is a private superannuation fund that allows you to manage your own superannuation investments for your retirement. Not everyone can set up their own super, so understanding the basics is crucial before getting started. We always suggest you speak to your accountant or financial advisor for any questions on setting up your SMSF.
At this stage, we’ll only accept residential investment properties.
Yes. You can buy numerous investment properties with your SMSF. You will need to account for your fund’s capacity to cover the ongoing costs that come with each property to make sure that this won’t be too much of a set back for your fund’s investment goals.
The main constraint is whether or not you will get approval if you need additional funding.
If your employer contributions are sufficient to service the debt, then we may not need to assess your personal financial position.
However, if you need to make additional contributions to be able to make the repayments, then we may need to complete a full assessment of your personal situation.
Our team is more than happy to discuss this further with you, depending on your individual circumstances.
You can get your dream home at a great low home loan rate because of our online model. We don't have to pay for branches or broker commissions, which means we are able to pass our savings directly on to you through low home loan rates and and no ongoing, annual or monthly fees.