SMSF Loan Features (Residential Security)
- Loan Amount: Min: $100,000 Max: $2,000,000 (larger amounts considered as exception by Credit Risk)
- Loan Term: Min: 4 years Max:30 years
- Max LVR: Individual trustees: 72% for standard homes
- Max LVR: Individual trustees: 63% for serviced apartments
- Max LVR: Company trustees: 80% for standard homes
- Max LVR: Company trustees: 70% for serviced apartments
- Repayment types: Principal & Interest: 4 – 30 yrs
- Interest only : Up to 15 yrs. At the end of the interest only period, the next 12 months (at least) must be Principal & Interest.
- Loan Increases are not allowed
- Redraw not permitted
- Interest Offset available on variable rate
- Personal Guarantees from beneficiaries of the SMSF, are permitted and must be taken when the super fund requires additional servicing requirements. Beneficiaries should be given sufficient independent financial advice to understand the consequences of a giving a personal guarantee in the event of default. The guarantors’ normal common law right of indemnity to recover any loss from the Borrower is limited by the SIS Act (Superannuation Industry Supervision Act) to only the rights in relation to the mortgaged property.
- Loan Purpose should be residential investment properties only in a suitable postcode.
The above is a guide only.
