Enjoy a standard fixed rate loan to help you take advantage of property investment opportunities with your SMSFs.
Both individuals and private corporations can benefit from the investment funds that Self Managed Super Fund (SMSF) loans offer towards investing in residential properties. The Bank of Queensland Standard Fixed Rate Investment Home Loan (SMSF) is designed specifically for those who are interested in the business of investing in residential properties.
For investors who prefer commercial property there are two different options which Bank of Queensland offers: the Business Term Loan and the Commercial Rate Loan. Each loan has different options designed to suit the varying needs of investors.
Things to consider about the Bank of Queensland Standard Fixed Rate Investment Home Loan (SMSF)
This fixed rate home loan is available for investors only. Individuals acting as trustees or a non-trading corporate entity as a trustee are welcome to apply for a loan of up to 80% of the value of a residential property. The purpose of purchasing that property must be to use it as a means of earning money, not as a residence for the borrower.
As this is available as a low doc loan, investors who may not have the traditional pay slips or tax forms available to prove income are still eligible. However, additional documentation may be required during the application process.
Features of the Bank of Queensland Standard Fixed Rate Investment Home Loan (SMSF)
- Repayment terms. With this investment loan you are expected to make principal and interest repayments. Subject to special approval, you may be permitted to make interest-only payments during the first five years of the loan.
- Loan terms. The repayments for this loan can be spread over a maximum 30-year time frame.
- Repayment options. You have the flexibility to choose to make repayments weekly, fortnightly or monthly.
- Loan to value ratio (LVR). In the event that the borrower is acting as a trustee for a privately-owned corporation, up to of the value of the property may be borrowed. If the borrower is an individual they may borrow up to 75% of the value of the property.
- Loan amount. The amount of funding available with this loan ranges from up to . This allows an investor to consider a wide range of properties available for investment.
- Additional repayments. In order to help pay off your investment loan faster, you are permitted to make extra repayments so long as they do not exceed $5,000 p.a.
- Application fee. You are required to pay the bank for preparing your loan paperwork.
- Monthly fee. Your account will be charged an additional $10 monthly maintenance fee.
Note that you'll also have to pay valuation fees and government fees.
How to apply for the Bank of Queensland Standard Fixed Rate Investment Home Loan (SMSF)
Please see a mortgage broker or speak to Bank of Queensland directly to start your application for this investment loan. Here is the list of eligibility requirements that you must meet in order to be eligible for this home loan:
- Self Managed Super Fund (SMSF). An individual acting as a trustee or a private corporation as a trustee.
- Purpose. This loan is only available for the purchase of a residential property as an investment property.
Here is the list of documents required in order to file an application for this home loan.
- SMSF Trust Deed. A certified copy of the Self Managed Super Fund (SMSF) trust deed will be required.
- Custodian Trust Deed. You will be required to have a certified copy of the custodian trust deed.
- Financial Information. As this is a low doc loan, you may provide alternate documentation to ensure serviceability. This may include three years worth of SMSF audited financial statements, one year of SMSF bank statements and rental estimates for the property.
- Contract. You will also be required to provide a full contract of sale.
Investing in residential property can be a smart way to secure ongoing funds towards your future needs. Compare this investment loan with others that are available and choose the one that best suits your future financial plans.