Home Calculators How much can I borrow? Calculator
SMSF - How Much Can I Borrow?
Could you be investing in property using your superannuation? Find out how much you can borrow using your super in just a few easy steps.
we estimate you can borrow:
How much can I borrow?
To work out how much money you can borrow to invest in property using your superannuation, you need four pieces of information.
- The first is the interest rate of the loan you wish to use.
- The second is the annual rental income expected from the property, which is factored into the borrower’s ability to make repayments.
- The third is your annual salary.
- And finally, your total salary sacrifice, which is a section of an employee’s wages they wish to forego in exchange for another benefit of similar value.
For example, David is a solo investor who wishes to buy a property in the Sydney suburb of North Rocks. The interest rate on the loan he is looking at is 5%. The expected weekly rent adds up to $27,040 per year. David’s annual salary is $75,000 and his salary sacrifice is $10,000.
After putting all these numbers in the allocated positions in the How much can I Borrow? SMSF calculator and clicking ‘Calculate Now!’ the result turns out to be $491,677. This means that considering David’s specific circumstances, it is estimated that his lender will be willing to loan him up to about $491,677.
Now David has a clear idea about roughly how much his lender will loan without even having to consult them. But banks won’t lend just any amount. There is usually a minimum loan and maximum loan. For example, a typical minimum loan is about $100,000 and a typical maximum loan is about $2,000,000.
It is also worth noting that loans to SMSF’s are ‘limited recourse loans’. This means that if you default, the bank can only access the investment property itself and any other property securing the loan. The lender cannot access any other super assets.
Speak to an SMSF lending specialist
Whether you're looking to refinance or purchase investment property with your SMSF our partners can help you find the right SMSF home loan.
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For home loans, the base criteria include a $400,000 loan amount over 25 years. For car loans and personal loans, the base criteria include a $30,000 loan over 5 years. These rates are only examples and may not include all fees and charges.
*The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Monthly repayment figures are estimates that exclude fees. These estimates are based on the advertised rates for the specified term and loan amount. Actual repayments will depend on your circumstances and interest rate changes.
Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you.
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