SMSF Home Loan Property Broker

Self-Managed Super Funds (SMSFs) can be a great tool for building wealth for your future. With self managed super funds, you have more control over where the funds you've been contributing are invested. One powerful option can be SMSF lending, allowing your superannuation fund to borrow money to purchase an Australian investment property or other assets. At Fundi Finance - Mortgage Broker based in Eumundi, we help clients in Australia navigate the world of SMSF lending and invest in property with confidence.

What is SMSF Home Loan Lending?

SMSF lending is when your SMSF borrows money from a lender to purchase an investment asset, most commonly an investment property. You can refinance throughout the loan term, much like a normal home loan. Your SMSF makes repayments on the loan amount, and any additional rental income is allocated towards your SMSF balance.

The only catch is everything must stay within the SMSF until you are legally allowed to access it.

So if the property increases significantly in value and you want to sell it to improve your financial situation, all capital gains must remain within the SMSF until you are legally able to access those funds.

How Does SMSF Home Loan Lending Work?

SMSF takes advantage of a Limited Recourse Borrowing Arrangement (LRBA): This is the legal structure that underpins all SMSF Lending. It is an arrangement that means that in the event of default, the lender can only access the specific asset purchased with the borrowed funds, not the entire SMSF.
Bare Trust: A bare trust is established to hold the purchased asset on behalf of your SMSF.
Loan Approval: Your SMSF applies for a loan with a lender and goes through a credit assessment for approval.
Purchase and Income: Once the loan is approved, the SMSF uses the borrowed funds combined with the SMSF deposit contribution to purchase the asset.

Why Choose SMSF Property Loan Lending?

Diversify Your Portfolio: It gives you the opportunity to make invest the money in your SMSF in property of your choosing, you can branch out from shares and other conventional super investments.
Potential for Higher Returns: Property investment can offer the potential for strong growth and income over time, potentially giving you higher returns on your investment.
Tax Advantages: Rental income and capital gains may enjoy tax benefits within your SMSF.

Navigating SMSF property loan, SMSF home loan lending regulations and finding the best loan terms requires specialized expertise. That's where Fundi Finance excels:

Personalized Guidance: Our team understands the complexities of SMSF lending and works with you to create tailored solutions that fit your investment strategy.
Competitive Rates: We navigate our extensive lender network to secure the best possible interest rates for your SMSF home loan.
Smooth Process: Our streamlined process makes SMSF lending as stress-free as possible.

We will do everything we can to tailor your SMSF lending experience to your individual needs, we want to make sure that you get the lowest cost option for your situation so that you can maximize the returns on your investment.

Important Note

SMSF lending carries risks, and it's essential to seek independent financial advice from your accountant and financial advisor.

This is general advice only.

Call

0459 271 631

brody.baker@fundifinance.com.au

How much of a deposit will I need to have saved?

The amount of deposit you'll need for your mortgage depends on several factors, but as a general guide, aiming for a 20% deposit is ideal. This will unlock the best interest rates and avoid the cost of Lender's Mortgage Insurance (LMI). However, there are options available even with smaller deposits, so let's break it down: Minimum deposit requirements: Most lenders require a minimum deposit of 5% of the property purchase price. With a deposit less than 20%, you'll likely need LMI, which protects the lender if you default on your loan. This adds extra cost to your mortgage. Benefits of a larger deposit: Lower interest rates: The bigger your deposit, the smaller the loan amount, and typically, the lower the interest rate you'll qualify for. This can save you thousands of dollars over the life of your loan. Avoid LMI: With a 20% deposit or more, you generally avoid LMI, saving you money upfront and over the loan term. Alternative options with smaller deposits: First Home Guarantee Scheme (FHG): This government scheme allows eligible first home buyers to purchase a property with a deposit as low as 5% without LMI. Guarantor loans: With a guarantor who uses their equity as security, you might qualify for a lower deposit and potentially avoid LMI. Lenders Mortgage Insurance (LMI): While it adds cost, LMI can help you purchase a property with a deposit as low as 5%.
I love where I live, can I keep renting and buy an investment property as my first home?

Yes! This is a common strategy seen these days for those people living the city life but unable to afford to buy a property where they are living. You could continue renting in an area that you love while purchasing a property in an area you can afford and rent that property out.
Do I need a pre approval before buying a property?

Short answer is No. Although a pre approval can be a valuable tool for providing confidence that a lender has agreed to lend you the money you are after, it is not essential. If you are in a good position, spoken with a broker and they are confident you could get what you are after you could potentially look to purchase without one. I would always recommend that you include a finance clause in your offer to protect you and to allow you enough time to gain finance approval.
I've been banking with my bank forever, will they look after me?

No - they look at everyone as if its the first time they have met them. This is something I see very often. People who have been banking with a certain bank for years believe because of this they will get special treatment with that bank. Unfortunately that is not how it works, almost all of the banks have separate loan departments which look at your situation as if they have never met you before. They go through the whole application process and calculate your borrowing power based on your income, expenses and individual situation.
Is it hard to buy your first home?

Like anything you do for the first time, buying your first home can be very daunting. There is always going to be parts of the journey that are stressful and hard, but If you surround yourself with the right team, they can help take the stress out of the whole process and make it as easy as possible for you. If you would like some help, a mortgage broker can be your most valuable tool to help you put a plan in place to buy your first home.
Do I need to save a 20% Deposit?

We've all heard the ramblings of "you need a 20% deposit to even start looking for a property" This is a common misconception. There are so many different options available now to purchase your first home with a small deposit and in some cases even no deposit. If you'd like to talk with a mortgage broker on if you'd be able to get a home loan please reach out
Where do I start?

This home buying guide is a great place to start, If you have read through this it tells me that you are serious about getting into a place of your own. For your next step, I would recommend booking in to talk with your local mortgage broker. They will be able to tell you where your borrowing power is at the moment and run you through what options you have available to you. We would love to help you put a plan in place - Contact us
How do I buy a house with no deposit?

While this option is not available to everyone, there is a way to purchase a property with no deposit saved. If you have parents that own a property and have equity available (they could still have a home loan) and are willing to let you use that property as collateral to purchase your property. You can then secure 20% of your new properties value + other fees and charges against your parents property while securing the other 80% against the new property that you are looking to purchase. There are risks for all parties involved in this scenario. If you would like more information if a guarantor loan would be suitable for you, please reach out to your local mortgage broker.