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Use your SMSF to buy property

Planning for your retirement starts today.

Our professional mortgage brokers helping you with your SMSF Loan.

What is a self-managed super fund (SMSF)?

A Self Managed Super-fund (SMSF) is an alternative to the industry super funds. Both are investments designed to grow and secure funds to live on in retirement. With an SMSF you have more flexibility and control over your retirement planning, it is a popular option for professionals and business owners because it can offer certain advantages like tax benefits. An SMSF is regulated and you must decide if an SMSF is right for you.

Get a SMSF Property Loan

Royal Oak Finance are a mortgage broker professionals who specialise in lending for an SMSF. We understand the complexities of SMSF lending and with our abundance of knowledge in lending, we understand which lenders will make all the difference when it comes to arranging your SMSF finances.

We and our partnered professionals work together, to provide you with guidance and advice on your SMSF process.

Frequently Asked Questions

With a SMSF loan you are required to have a significant deposit, often borrowers will have this amount saved in superannuation. It’s important to remember that not only is it the deposit requirements, but you will need to devote enough of your super funds to cover other transaction costs as well.  

The property investment type will determine the deposit requirements, a commercial property it requires a larger deposit than a residential investment property.

With SMSF loans;

  • For residential property, you may borrow up to 75-80% of the property value
  • For commercial property, the maximum you may be able to borrow is up to 70%
  • In some instances, lenders may expect a greater percentage of the purchase price as a deposit this will depend on your personal circumstance’s

It’s important to speak with a financial advisor to discuss your retirement investment strategy before applying for a SMSF loan and speak to us, your specialist mortgage broker we understand lenders and the different policies and will be able to guide you through the lending process.

It’s important to note that there are fees associated with the initial purchase and setup of your SMSF and then ongoing fees to maintain your SMSF. Carefully take time to understand the fees of your SMSF and your obligations under legislation.

Fees for a SMSF may include;

  • Setup fees for professional services
  • Transaction costs
  • Annual audit fee and ATO supervisory levy (ongoing)

Purchasing of property in your SMSF, standard fees apply which may include;

  • Stamp duty
  • Solicitors Fees
  • Application Fee
  • Lender’s fees/charges

Additional fees to consider are;

  • Property management fees for rental investment.
  • Financial Advisor Professional service fees
  • Accountants Professional service fees
  • Buyers agent Professional service fees

Borrowing through your SMSF can be advantageous, however, understand all the fees associated with your SMSF as these expenses can add up. Understand the benefits for you and your situation. Use government website like Money Smart to assist in your research also speak to your financial advisor and accountant. If you require more information contact us for a free consultation.

Property purchases through your SMSF must follow certain requirements set by the government. The property purchase must be made in your SMSF trust and be a worthwhile retirement strategy. The property itself must meet the government criteria;

  • A property cannot be rented by anyone who is related to you or any other trustee fund member.
  • None of the trustees themselves, nor any related person to any of the fund members can live in the property. If you or any of the trust members have intentions to live in the investment property when you retire you might not be able to purchase the property through your SMSF.
  • The sale of the SMSF must be handled at arms-length meaning not one of the trustees can sell the property to another member. Nor can any relatives be involved, some exceptions for commercial however seek professional advice to avoid penalties.
  • The property purchase must be intended for the sole purpose of providing retirement benefits for the trustees of the SMSF.

SMSF borrowing is available for the benefits of your retirement only. The ATO is a useful resource for information on SMSF, more information can be accessed here.  And speak with a professional, your financial advisor, accountant and mortgage broker will provide you with information specific to your situation.

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