Loan Features
SMSF eligibility confirmed first
Your SMSF structure, trust deed, and investment strategy are reviewed to ensure the fund can borrow.
SMSF Loans usually don’t affect your personal borrowing capacity
Personal borrowing limits based on your personal income / affordability are not affected by a Self-Managed Super Fund, allowing you to borrow and invest further should that be part of your personal investment strategy.
Limited Recourse Borrowing Arrangement (LRBA)
SMSF property loans must be set up under an LRBA, where the lender’s security is limited to the property being purchased.
Higher deposit requirements
SMSF loans typically require a larger deposit than standard home loans, depending on the lender and property type.
Property contract and approval
The correct contract structure is essential before exchange, followed by valuation and formal lender approval.
Loan settles in the SMSF structure
Funds are released at settlement, and the property is held in a bare trust on behalf of the SMSF.
Loan repayments from super funds
Repayments are made from SMSF contributions and rental income, not personal income.
Loan runs until completion or repayment
Once the loan is repaid, legal ownership transfers from the bare trust to the SMSF.
GKM Mortgage Brokers can provide guidance through strict borrowing rules around property type, leases, and related-party purchases.
Why use a Broker?
Access to SMSF-specialist lenders
Not all banks offer SMSF loans; brokers know which lenders are active and competitive in this space.
Correct setup from the start
Ensuring the SMSF, bare trust, and loan structure are established correctly to avoid compliance issues.
Coordinate with accountants and solicitors
Brokers work alongside your advisers to align lending with super and tax requirements.
Navigate complex lender policies
Guidance through strict rules around property type, leases, and related-party purchases.
Manage documentation and timing
SMSF loans require more paperwork; brokers keep the process moving and reduce delays.
Strategic advice on loan structure
Assistance with fixed vs variable rates, loan terms, and cash-flow considerations within the fund.
Reduce costly mistakes
Helping avoid errors that could breach superannuation rules or force an unwind of the transaction.