1300 312 712
Have Any Questions?
L2, 11-15 Deane St
Burwood NSW 2134
Visit Us (By Appointment)
SMSF Home Loans
- Available Australia wide, 7 days a week
- Negotiation power for lowest interest rates
- Experienced team with expert knowledge
- Access to all SMSF lenders
Have a question on SMSF loans?
Fill in the below form and our team will contact you within 2 business hours
High loan
approval rates
100% client
satisfaction
Home Loan
Policy Experts
How Zenith Can Help With SMSF Loans?
A self-managed super fund (SMSF) loan is a complex financing solution that requires more parties, time, and strategic planning than a standard home loan. In these situations, partnering with mortgage brokers who have access to a wide range of lenders and exclusive rates in SMSF home loans is essential.
At Zenith, our mortgage brokers will guide you through every step of your loan application, helping you prepare all necessary documents to maximise your borrowing power and improve your chances of approval.
Note that many lenders have withdrawn from SMSF lending since 2018, but many non-bank lenders still offer these loans to qualified applicants. Unlike standard home loans, which have slight variations between lenders, SMSF home loans can differ significantly so it makes sense to compare all your options before choosing a lender.
What Is a Self-Managed Super Fund Loan?
A self-managed super fund loan, also known as a Limited Recourse Borrowing Arrangement (LRBA), is a loan designed for people who want to buy a residential or commercial investment property through their self-managed super fund. The loan is made to a company or a trust with a corporate trustee
How Do SMSF Loans Work?
An SMSF loan allows a trustee of a self-managed super fund to borrow money to purchase an investment property, which can be either residential or commercial.
Upon purchase, the property is held in a separate custodian trust (bare trust), and any income generated is reinvested into the fund to repay the loan. Once the loan is fully repaid, the SMSF obtains the deed title.
What Are SMSF Loan Liquidity Requirements?
Most lenders have a ‘liquidity test’ on SMSF loans, which requires keeping a minimum of 5-20% of liquid assets (such as cash and shares) or a specific cash amount in the SMSF after buying an investment property. This requirement can often limit the borrowing capacity of an SMSF. Reach out if you require a lender which does not require asset and liquidity tests.
SMSF Rules to Comply With
- ‘Sole purpose test’ by providing retirement benefits to fund members exclusively.
- Cannot be purchased from a related party of a member.
- Cannot be occupied by a fund member or any related parties of fund members.
- Cannot be leased to a fund member or any related parties of fund members.
Get a home loan with full guidance and expert assistance
- Top-Rated Mortgage Brokers in Australia
- High Approval Rate over 1000+ loans
- Direct access to 50+ banks & lenders
Schedule a consultation with one of our home loan experts
How Can I Get Approved?
Lenders have their own lending criteria and policies to assess your SMSF home loan application. We understand everyone has different circumstances, it is important to speak to one of our mortgage brokers and discuss your financial goals and situation, so we can provide you with the most suitable solutions.
How Is Borrowing Capacity Calculated?
Calculating borrowing capacity for SMSF is simpler than standard loans. Generally, your living expenses and current liabilities (home loans, credit cards and personal loans) are not taken into account during SMSF borrowing capacity assessment.
Lenders will consider the following income:
- Rental income from proposed property
- Super guarantee contributions from your employer (if PAYG)
- Salary sacrifice (if PAYG)
- Voluntary contributions evidenced over 2 years (if self-employed)
- Accountants letter to confirm additional super contributions (this is case by case)
Some lenders may allow the members personal income (non-super guarantee) to service the loan. However, lenders will have to include your living expenses and current liabilities if you decide to utilise this method. Contact Zenith to complete a full assessment to get a tailored solution.
Lenders will consider the following as expenses:
- Property expenses (land tax, utilities and council rates)
- Ongoing admin cost (accounting, audit and compliance fees)
To ensure compliance with all regulations ensure you consult a tax agent and a financial adviser. Make sure to read all available information and access relevant resources to stay fully informed. You are responsible for your SMSF, therefore it is crucial you adhere to the ATO rules.
Essential documents that you need to prepare when applying for an SMSF loan include:
- Identification (licence, passport and Medicare etc.)
- Certified SMSF trust deed
- Certified property custodian trust deed (SMSF bare trust deed)
- Most recent SMSF audit report (not required if newly created SMSF)
- Most recent SMSF financial statements (not required if newly created SMSF)
- Most recent SMSF tax returns (not required if newly created SMSF)
For most lenders you will need 20% for residential properties and 30% for commercial properties. Ensure you also have an additional 5% funds to cover expenses such as transfer duty (stamp duty), conveyancing and set up costs.
Some lenders do offer up to 90% LVR for residential properties, though lenders mortgage insurance (LMI) is applicable, contact one of our brokers at Zenith to discuss your specific needs.
No, the property home loan must be under the SMSF trust’s name. However, as the SMSF trustee, you will be responsible for managing the property.
The SMSF home loan market is small compared to your standard home loan. As SMSF loans are generally smaller in loan size, more complex to assess and more expensive to review, most major lenders have pulled out of the SMSF market.
When considering SMSF loans, it’s important to be aware of both the initial establishment costs and the ongoing operating expenses. Speak to one of our mortgage brokers at Zenith to get a better outstanding of these costs so you can plan ahead.
Some of Our Lenders
Where
experience
counts
We believe everyone deserves access to a simple and transparent process for securing a home loan that aligns with their unique needs and goals.
We know how overwhelming the home loan process can be, and we’re here to make it easier.
With years of experience and a strong track record of helping hundreds of Australians secure the best home loans, we’re committed to making the process as simple and stress-free as possible.
client satisfaction
0
%
loans approved
0
+
different lenders
0
+
Join thousands of satisfied customers
Have an obligation-free chat
with one of our experts
Your success
is
our success
We understand everyone’s circumstances are different and we take the time to understand you and your goals. We value forming lifelong relationships with all our clients and we are fully committed to adding value every step of the way.
We know that mortgages can sometimes be complex and hard to understand. We focus on simplifying the process for you and we treat your loan as if it were our very own. Let us do what we do best so there’s one less thing for you to worry about.
Frequently Asked Questions
Partnering with a mortgage broker like Zenith can significantly streamline your home loan journey. We provide expert advice on loan products carefully tailored to your unique financial situation. By handling the legwork, comparing multiple options, managing paperwork, and negotiating better terms, we save you valuable time and help identify potential hidden fees. As we are not tied to any single lender, we can select the best loan for your needs, ensuring you secure the most suitable deal. Additionally, we proactively review your interest rate multiple times per year to ensure you remain on the most competitive rate available, maximising your savings and giving you long-term peace of mind.
Our services are provided at no cost to you. We receive compensation directly from the lender you choose once your loan is settled, ensuring that you can explore your options without incurring any upfront fees.
Each lender has unique criteria and requirements that must be met before they approve a loan. Our team takes the time to thoroughly analyse your credit history, income situation, and the specific strengths and weaknesses of your financial circumstances. This allows us to match you with the most suitable lender and loan package tailored to your needs. Our experienced professionals will provide you with comprehensive information, ensuring you have everything necessary to make an informed decision.
To begin, we’ll work closely with you to understand your goals and objectives. We’ll then gather and review all necessary supporting documents to ensure we have a comprehensive understanding of your situation. Once we have sufficient information to make a personalised recommendation, the next step will depend on the chosen lender’s processing timeline. This can vary from several weeks to a few months, which is why we strongly advise initiating the process as early as possible, especially when it comes to property purchases, where timing can be crucial.
You may not always qualify for financing from a specific bank. After assessing your unique situation, we’ll work to find you the lowest possible interest rate from eligible lenders. While interest rates are important, they’re just one piece of the puzzle. We’ll also help you consider all other fees and features associated with each loan option, ensuring you have a complete understanding of your choices and can make an informed decision that best suits your needs.
Typically, lenders require a minimum deposit of 5% of the property’s purchase price to secure a home loan. However, in some cases, it may be possible to proceed with a lower deposit. Keep in mind that if your deposit is less than 20% of the property’s price, you may need to pay Lenders Mortgage Insurance (LMI), unless you qualify for an LMI waiver or apply for a family guarantee. Contact us to explore your options and determine the best approach for your situation.
Support for SMSF Loans in Australia