SMSF Lending

At Tesoro Financial we've seen a spike in SMSF applications of late.

A self-managed super fund (SMSF) loan finances investments to be made through self-managed super. SMSFs are designed to give members more control over their super.

SMSF loans are primarily designed for the purchase of commercial and residential property - one of the most popular asset classes held in SMSFs.

SMSF loans are (by default) what's called a limited-recourse borrowing arrangement or LRBA.

What this means is that in the event of default, a lender cannot come for other assets within the SMSF - only the asset in which the loan is secured against. As a result of this, SMSF loans generally attract higher interest rates than regular home loans.??

Many SMSF loans typically restrict the borrower to 80% LVR, i.e. a minimum 20% deposit, however some lenders may allow higher ratios.

One other major consideration is if your SMSF loan allows for residential or commercial property. Typically one loan might only allow for one type of property, however some loans facilitate both.

There are only a handful of lenders actively lending for SMSF - At Tesoro, we are accredited with the most trusted lenders in the industry, ensuring a transparent and seamless transaction.

We also have an in-house Financial planning team to set up and execute a Self Managed Super Fund - get in touch for more information.