Smsf home loans aren’t easy to get and the interest rates seem to be too high. Does anyone has any experience with online lenders like reduceloans or firstmac or any others.
SMSF Home Loan from online lenders?
wimpykid on 24/12/2021 - 00:01
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Thankyou mate. Loans.com.au says only “refinancing” for smsf so does that mean you can’t apply for a new one.
Also I see reduceloans have 30basis points better, do you do pricing at firstmac.
Firstly, the rate is what it is, there's no bargaining / negotiation etc. Secondly - good question, re purchase via LCA. I work in third party ie broker loans, although I do see the occasional LCA app. I do believe they've expanded into purchases now and not just refi but I will double check next Wednesday and let you know.
Real estate SMSF have high fees, taxes, landlord stress and low returns.
The gains are not worth the work.
Unless you know what you are doing and have a good tax accountant advising on this, I would stay clear of SMSF mortgages. Sure it is doable but not for the average person off the street.
Just to add credence to this. Under SIS law, you are only allowed to buy a “single acquirable asset”.
So if you buy a block of land via a smsf loan, that’s your asset. Can’t build on it until that loan is paid out.
I did one recently for a furnished apartment. Couldn’t include furniture as part of the contract as that was considered a seperate asset.
That’s valuable info thankyou
I work for Firstmac and I specialise in the SMSF loans. (can't see a Rep button to hit here to indicate my connection).To come to FMC as a customer you have to come through a broker. Loans without a broker come through our online retail arm loans.com.au. It's a slow process but it's helped if you make sure you submit all your documentation at the start. Sing out if you have any questions, if I can I'll answer them.
Basics - ignore if you already know all of this, your post doesn't indicate your experience with SMSF lending. This information is generic and is likely the same wherever you go. Your super guarantee contributions plus the anticipated / actual rent will be used to service the loan, not your total income. If you are self employed, provide evidence of your contributions over the last two years. You will need to provide evidence that your SMSF has funds to settle (deposit) plus costs (stamps, govt fees, conveyancing), plus 5% of the loan balance as well, to pass liquid asset test.
You will need the following structure - SMSF trust as borrower, plus SMSF trustee (can be 2+ individuals, usually members, or can be a corporation). This is the borrowing entity. Bare / custodian trust as guarantor plus bare trustee - this is the entity which holds the property in trust until the loan is paid out. Individual members of the fund are also guarantors on the loan.
Then of course you need to ensure that the purchase fits within LRBA legislation eg totally arms length purchase etc.
If you can provide your payslips, SMSF bank statement showing sufficient to pass LAT, both certified trust deeds, ID and a rental appraisal upfront, along with your purchase contract showing the bare trustee as purchaser in trust for the bare trust, you will find the process is a lot smoother. Hope this helps.