Want a lower rate on your SMSF investment loan?
loans.com.au has some of the lowest rate SMSF loans in the market
and wants to help
you refinance your SMSF so you can start saving thousands.
With an easy refinance process, no application or settlement fee, no monthly, annual, or ongoing fees, and a
competitive interest rate, get ready to start saving on your current SMSF loan.
Simply fill in your details below and one of our advisors will get in touch.
Refinance your SMSF loan
An SMSF home loan is a loan that trustees of a self-managed super fund (SMSF) use to buy an investment property. Any
returns on the investment, whether that be rental income or capital gains, are funneled back into the SMSF to
increase your retirement savings.
SMSF home loans are fairly similar to normal home loans, but they are a lot more complex to process and there can be
huge fines of over $200,000 if the loan application hasn’t been structured properly or is not compliant.
You can typically only buy an asset through your SMSF using a limited recourse borrowing arrangement (LRBA) which
means the lender won’t be able to seize any of your other SMSF assets if you happen to default on the SMSF loan.
Why refinance an SMSF home loan?
The biggest benefit of refinancing an SMSF home loan is the same as refinancing any other type of loan - to get a
better interest rate in order to save money on the loan. If your current SMSF loan has a high interest rate,
refinancing to an SMSF loan with a lower interest rate could save you thousands.
Other benefits of refinancing include getting an SMSF loan that offers better features or more flexibility, such as
the ability to make unlimited extra repayments, or low or no fees.
How to refinance your SMSF loan
To refinance an SMSF you generally have to meet some pretty strict approval requirements that include:
Borrowing up to 80% of the value of the property (so the entire cost to switch or refinance the loan must be
no more than this amount).
The property you’re buying with an SMSF home loan must be a standard residential property in a metro
You generally need to have between 10-20% of the property value in liquid assets after settlement.
The new loan can’t be more or less than the current loan amount and it has to have a loan term between 15 and
The current loan has to be more than one year old with on-time repayments for the last six months.
Documents required for SMSF refinancing
Refinancing an SMSF loan is a more complex process than refinancing a traditional home loan and it requires a lot
more documentation. This includes:
SMSF trust deed.
Custodian trust deed.
Latest super fund statement prior to the establishment of your SMSF.
The last two years of audited SMSF annual returns.
An accountant’s letter confirming the company trustee is not trading.
The last two years' financial reports.
The last two years of income tax returns on all related entities.
Fund income tax and regulatory return.
Costs of refinancing an SMSF loan
Depending on the lender, some of the costs of refinancing can include:
Loan application fee, however, loans.com.au does not charge
Settlement fee (loans.com.au also does not charge a
Government fees to register and transfer the property.
Ongoing fees. loans.com.au doesn’t charge any monthly,
annual, or ongoing
Things to consider when refinancing your SMSF loan
Before refinancing your SMSF loan, there are quite a few things to consider, including:
ATO requirements: The Australian Taxation Office (ATO) states that you can’t increase the
amount you’re borrowing against the property when refinancing an SMSF loan. You also can’t refinance to
improve the property through renovations but repairs are allowed. There are many other ATO requirements
around refinancing SMSF loans so it’s important to seek expert advice.
Terms and conditions: SMSF loans come with many terms and conditions attached so it’s
important to read the fine print carefully. These terms and conditions can include the minimum amount of
funds required to be held in the SMSF, details about the purchase of the property, and much more.
Repayment terms: Before refinancing your SMSF loan, consider whether you could benefit from
switching to a loan with an interest-only repayment period to minimise your monthly repayment amount, or
whether it would be worth switching to an SMSF loan with a longer or shorter loan term.
Interest rate, fees, and charges: A big reason why people refinance their
SMSF loans is to get a better deal, so make sure to shop around and compare rates offered by a range of
lenders. You should also consider whether switching to an SMSF loan with a fixed or variable rate could save
you money, and how much you could potentially save in fees by refinancing. What fees currently apply to your
SMSF loan? We don’t charge any monthly, annual, or ongoing fees.
Benefits of refinancing versus the cost: Setting up a new SMSF loan can be costly with
application, settlement, and legal fees. Our SMSF loan has no application or settlement fees.
The time it will take to refinance: Refinancing an SMSF loan can take longer than
refinancing a traditional home loan because there’s a lot more paperwork involved. Ask yourself if the
benefits of refinancing your SMSF loan will outweigh the time it will take.
SMSF refinancing FAQs
Can I live in a property owned by my SMSF?
If you purchase residential property through your SMSF while you are working, you can only rent it out as an
investment property, provided it is not rented out to any member of your SMSF fund or a relative of a member of the
fund. This situation changes when you retire only if the property is transferred to you, meaning it is no longer
owned by your SMSF.
How much can my super fund borrow?
According to the ATO, a trustee can use a limited recourse borrowing arrangement (LRBA) to fund the purchase of a
single asset (or a collection of identical assets that have the same market value) to be held in a separate trust.
Any investment returns that are earned from the asset then have to go to the SMSF trustee. If the loan defaults, the
lender's rights are limited to the asset held in the separate trust, which means there is no recourse to the other
assets held in the SMSF.
How long will it take to refinance my SMSF loan?
Refinancing an SMSF loan takes a lot longer than refinancing a traditional loan and can take between four and six
weeks from application to settlement. This is because SMSF lending is a highly specialised area of lending which
requires a lot more documentation than a regular home loan.