Low interest rates
Market leading Principal & Interest and Interest Only rates for residential and commercial SMSFÂ investors.
Purchase and refinance an investment property through your Self-Managed Super Fund (SMSF).
An SMSF loan, also known as a Self Managed Super Fund loan, allows SMSF trustees to borrow funds to purchase or refinance an investment property through their superannuation. In Australia, an SMSF loan must be structured as a Limited Recourse Borrowing Arrangement (LRBA), meaning the lenderâs security is limited to the property being financed. A Self Managed Super Fund loan supports an SMSF purchase where rental income and potential capital growth are retained within the SMSF to help meet long term retirement objectives. All SMSF loans are subject to strict Australian Taxation Office rules, including the sole purpose test. If you are weighing up whether this strategy suits your fund, see our guide on SMSF pros and cons.
The Yard SMSF Loan can be used to purchase a new investment property or to refinance an existing SMSF property loan. It is available for both residential and commercial property, providing SMSF trustees with flexibility to invest in assets that align with their investment strategy.
Our local expert team is here to help with any questions
We can help you purchase a residential or commercial property within your SMSF. We can also help you refinance to obtain a better rate or new loan features on your existing SMSFÂ loan.
You can make unlimited additional repayments on our SMSF loan. This means that you can pay off your loan faster than the agreed term and save on interest. Calculate your SMSF repayments here.
Having an offset account linked to your loan allows your SMSF savings to lower the amount of interest you pay on the home loan.
We can help you purchase with a 20%Â deposit. No Lenders Mortgage Insurance (LMI) applies for loans up to 80%Â loan-to-value ratio.
Own your property sooner with our low rate, fully-featured SMSF loans
Market leading Principal & Interest and Interest Only rates for residential and commercial SMSFÂ investors.
Our loans have all the bells and whistles - online access with early repayment and 100% offset functionality.
At Yard you get your own personal consultant who works with you throughout your property buying or refinancing journey.
Documentation requirements vary depending on your SMSF structure and personal financial situation. Here is a simple checklist to help you prepare:
SMSF trust & structure documents: Certified copy of the SMSF trust deed and custodian (bare) trust deed (if applicable).
SMSF tax returns, audit & financial records for established SMSFs.
SMSF cash management account statement showing available savings balance (required for purchases), or an SMSF loan statement for the refinance of existing SMSF loans.
Information on your personal financial situation, including employment and super contributions, to confirm the ability to make on-going contributions to the SMSF to service the loan in addition to other SMSF income streams, such as rent and dividend income.
Our team will guide you through whatâs required based on your specific â¨situation. You can contact our team of SMSF lending experts here.
When considering SMSF loan options, it is important to seek advice from a qualified financial and legal adviser to ensure the strategy suits your circumstances and complies with superannuation law. Some general considerations to be aware of include:
Pros
Property investment through super - use your SMSF to purchase residential or commercial property to grow retirement savings.
Concessional tax treatment - rental income and capital gains can be taxed at lower superannuation rates. Consult a financial adviser.
Flexible loan features - unlimited additional repayments and an optional offset facility support cash flow management.
Cons
Higher upfront and on-going costs - SMSF loans can involve higher upfront costs and on-going expenses related to establishing, maintaining and administering the SMSF, in addition to property and loan-related costs.
Strict compliance rules - SMSF loans must meet ongoing Australian Taxation Office requirements.
Restricted property use - the property cannot be used by SMSF members or related parties.
The Self Managed Super Fund (SMSF) loan is tailored to provide loans to trustees of authorised regulated Australian Self Managed Super Funds (SMSFs) to borrow for the purpose of purchasing investment property. SMSF can invest in residential or commercial property.
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The ATO has specific rules that apply to property investment in an SMSF, and you need to comply with these, including that the property:
⢠ Is solely for providing retirement benefits to SMSF members, otherwise known as the âsole purpose testâ.
â˘Â  Cannot be purchased from a related party of an SMSF member.
â˘Â  Cannot be lived in by you or other SMSF members or their related parties.
â˘Â  Cannot be rented by an SMSF member or anyone related to them.
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On a technical note you should also be aware that ATO rules state that SMSF can only purchase an asset - like an investment property - using a 'limited recourse borrowing arrangement' (LRBA). An SMSF loan is a LRBA, which is thereto protect other assets held by the fund.
For more information, read our SMSF Loan Guide or talk to one of our experts.
The Yard SMSF Loan is a property loan used by a self-managed super fund (SMSF) to buy residential or commercial investment property. The returns of the investment (rental income or capital gains on the value of the property) are then retained within the super fund to boost your retirement savings.Â
The SMSF loan works in a similar way to an investment loan but there are several differences you should be aware of:Â
⢠ Loans must be supported by personal guarantee(s) required from all members/beneficiaries of the SMSF.
⢠ The security property should be an established residential or commercial property. Brand new builds are acceptable.
⢠ You cannot purchase vacant land or do construction within your SMSF.
⢠ Equity cash out or redraw are not available loan features.
The SMSF borrowing power is determined based on the superannuation contributions, rental income of the investment property and on-going SMSFÂ expenses. Typically, you can borrow up to 80%Â of the value of the property - this means you would require to contribute 20%Â deposit towards your purchase.
Some borrowers will have taken out an SMSF loan that is no longer on a competitive interest rate. In this case, it is worth exploring refinancing your SMSF loan to a lender with a lower interest rate or a product that has features that better suit your needs. As a fully-featured lender, Yard offers low rate SMSFÂ loans with all the bells-and-whistles including unlimited additional repayments and 100% offset facility. Ask us about refinancing your SMSFÂ loan today.
Residential SMSF
âStandard residential investment house, unit/apartment or townhouse.
Some exclusions include:
⢠ Vacant Land
â˘Â  Construction
â˘Â  Purchase or refinance of owner-occupied properties
â˘Â  Non arms-length transactions
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Commercial SMSF
âExamples of acceptable commercial property include:
⢠ Strata offices and showrooms
â˘Â  Retail outlets (e.g. shops, restaurants)
â˘Â  Industrial factories and warehouses
â˘Â  Medical suites
â˘Â  Childcare centres, and others
Yard currently has products that do not require a set amount of funds to be leftover in the SMSF after a property purchase. This is also referred to as a liquidity requirement. You can book a call with one of our Loan consultants who will discuss your financial situation and determine whether a liquidity requirement applies.
Principal &Â Interest and Interest Only options are available. You can make unlimited additional repayments and use our optional 100%Â offset facility feature to save on interest.
Yes, loans must be supported by personal guarantee(s) required from all members/beneficiaries of the SMSF.
