SMSF Calculator: 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. Use the How Much Can I Borrow calculator: enter the loan interest rate, annual rental income, annual salary and any salary sacrifice.

• %
• \$
• \$
• \$

How much can I borrow?

by Nila Sweeney

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.

Other Calculators