SMSF Finance

What is SMSF Finance?

SMSF lending refers to finance specifically designed for Self-Managed Super Funds (SMSFs) to enable them to purchase property or other assets as part of their investment strategy. This finance is tailored to meet the unique requirements of SMSFs and are subject to specific regulations to ensure compliance with superannuation laws.

SMSF finance provides a strategic opportunity for SMSFs to diversify their investment portfolios by acquiring properties including residential investment and commercial.

Key Features of SMSF finance:

• The purchased asset serves as security for the finance, and SMSFs must adhere to strict conditions.
• Typically, SMSF finance offer up to 80% LVR, meaning the SMSF must provide a 20% deposit in certain circumstances.
• SMSF finance are limited recourse, meaning the financier’s claim is limited to the asset purchased with the finance.
• Finance approval is based on declared personal income and/or profits supported by BAS or an accountant’s letter.
• Max finance amount $2million
• Income Assessment: Rental Income and SMSF contributions
• No minimum balance required for SMSF
• unable to show servicing within SMSF, ability to utilise personal income for additional servicing capacity