Borrowing through a self-managed super fund is highly regulated. Loan, trust and contract details need to align before the purchase proceeds.
SMSFs are generally prohibited from borrowing except in limited circumstances, including a correctly structured limited recourse borrowing arrangement. The loan is only one part of the process.
Before signing a contract, obtain advice from an SMSF-experienced financial adviser, accountant and solicitor. AAA provides credit assistance, not legal, tax or financial product advice.
If a property is not being purchased through a self managed super fund, standard investment loans may be the more relevant starting point. Where the SMSF is considering commercial property, commercial finance information can help explain how the property type and lease may affect assessment.
We clarify your finance requirements and explain when specialist legal, tax and financial advice is needed before you sign a contract.
We review your borrowing entity and holding trust documents against lender requirements alongside your professional advisers.
We review your fund’s contributions, liquidity, expected rent, servicing position and proposed property.
We compare suitable deposit, rate, fee, liquidity and limited recourse lending requirements.
We lodge your application and coordinate the valuation, lender conditions and settlement requirements with your advisers.
Real stories from people we helped make clearer, more confident loan decisions.
It may borrow under a permitted limited recourse borrowing arrangement that meets superannuation law and lender requirements. Incorrect structuring can have serious consequences.
Requirements vary by lender and property, and the fund must also retain sufficient liquidity for costs and obligations. Residential and commercial properties can be treated differently.
Generally, a residential SMSF property cannot be used by a member or related party. Obtain specialist advice about related-party and sole-purpose rules.
Eligible business real property may sometimes be leased to a related business on arm's-length terms. Specialist advice is required before proceeding.
Construction and significant improvements can be difficult under limited recourse rules and lender policy. Confirm the legal structure and finance availability before buying land or signing a building contract.
Common requirements include the SMSF trust deed, investment strategy, holding-trust documents, financial statements, contribution history, member information, lease details and purchase contract.
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