Self Managed Super Fund

SMSF – Self Managed Superannuation Fund

Important Disclaimer & Warning – SMSF Investments, establishment and property investing is tightly regulated and is controlled by federal legislation. ASIC website is a good source of information and provides clarity around licencing and potential pitfalls.

Mortgage Brokers can undertake loan applications for a SMSF to purchase property. Some banks and lenders require additional accreditations to undertake SMSF loans which the mortgage brokers at NFC have completed.

When it comes to advice for the establishment of a SMSF, you must seek the advice of qualified professionals. Should you require assistance with this we can refer the services of financial planners that are specialised in this area and are independent of us. Mortgage Brokers, Bank Lenders and Property Consultants cannot advise on the establishment of a SMSF. We also exercise caution of seminars where an advisor, property consultant and mortgage broker/banker are promoting/selling new properties as a collective group. We always recommend obtaining an independent valuation particularly when coming from a seminar selling new property.

Now that we have made clear the above, SMSF lending utilises the same loan products as home loans such as -

  • Interest Only up to 15 years
  • P & I Terms up to 30 years
  • 100% Offset Accounts on Variable Rates
  • Fixed Interest Rates from 1 - 5 years with most lenders

In regards to lending policy SMSF loans are more complex and require much greater documentation than a standard housing loan. Any proposed purchase in your SMSF requires the appropriate advice and planning before going to contract on a property. NFC also warns borrowere to look at well more than just the interest rate on a SMSF loan. Establishment fees and legal fees vary greatly between banks and lenders. Note all bank offer loans to SMSF borrowers and some that do only offer them as a commercial or business type facility.

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