Mortgage Forum and Home Loan Forum

I went to my bank Westpac (WBC) but I was told that they don’t offer SMSF loans anymore. I established our SMSF with both me and my wife as the trustees last year. I spoke with our accountant and he’s advised us of the benefits of selling our commercial premises to our SMSF. Are there other SMSF commercial loan providers that lend to SuperFunds?

Hello Bailey. Welcome to the forums.

The major banks have all decided to pull out of SMSF loans, leaving many customers unable to obtain investment loans for their self-managed super fund (SMSF) without seeking a specialist broker. There are specialist lenders that still offer SMSF loans and that’s who we work with.

There may be tax, capital or investment benefits for you to sell your commercial premises to your SMSF, and there are no restrictions against commercial properties as opposed to residential properties. Some lenders favour this type of transaction as opposed to the simple purchase of commercial properties within your SMSF.

With an SMSF commercial loan, you can:

• Borrow up to 75% of the property value for a commercial property (even with bad credit).
• Borrow up to 80% of the value of a residential property.
• Borrow up to $10 million (higher on a case by case basis).
• Loan terms of up to 20 years for commercial security properties (loan terms up to 30 years are considered on a case by case basis)
• Interest only repayments for up to 5 years.
• Discounted interest rates are available from some lenders.

Speak with one of our specialist mortgage brokers by calling us on 1300 889 743 or fill in our free assessment form to find out if you can buy a commercial property in your SMSF.

Cheers,

My accountant mentioned the super fund needs to set up a bare trust to purchase an investment property within the SMSF. Why do I need to set up a bare trust and by when do I need it?

Hi Bailey,

When buying an investment property for a self-managed superannuation fund (SMSF), the mortgage itself cannot legally be held in the name of the SMSF, for this reason, a bare trust needs to set up to apply for an SMSF home loan and purchase the property, with all benefits going to the SMSF beneficiaries.

Under the Superannuation Industry (Supervision) Regulations 1993 (SIS Act), the investment property and mortgage must be held in the name of a bare trust or custodian trust. In this way, you meet the requirements of having entered into an arm’s length purchase under a Limited Recourse Borrowing Arrangement (LRBA).

You can only set up the bare trust once you’ve identified a property that you intend to purchase for your SMSF. You’ll need to provide all of the legal details of the property to your accountant first. The purchase must also pass the ‘sole purpose test’ and align with the SMSF investment strategy, as written in the trust deed.

Cheers,

I’ve been hearing that the interest rates for SMSF home loans are quite high, with interest rates starting at 6% p.a and above. What’s the best SMSF interest rate you can get me?

Hi Bailey,

There are amazing SMSF loan interest rates on offer if you can build a strong case with the right lender. For example, there are great 3 years fixed interest rate of 4.37% for commercial SMSF loans currently. We don’t know for how long the offer will last.
You can check out the best interest rates offer from our lending panel, compare the best SMSF deals and start investing for your SMSF today.

Our mortgage brokers have developed strong relationships with our panel of almost 40 lenders over the years and that means we can negotiate heavily discounted SMSF loan interest rates.

Give us a call on 1300 889 743 or fill in our free assessment form and one of our SMSF loan specialists will back to you with a free interest rate quote.

Cheers,