You could look after the future of your SMSF by investing in property with the BankSA Super Fund Fixed Rate Home Loan.
If buying residential investment property is something you are considering for your SMSF, BankSA could help make it happen. Even if you are just now considering starting an SMSF or if it is an already existing one, you could borrow the funds needed to add an asset to your portfolio.
Things to consider about BankSA Super Fund Fixed Rate Home Loan
You can make this investment with your SMSF’s existing assets. This is a limited recourse loan where the amount that can be recovered in the event of default cannot exceed the amount of the secured property. This protects all other assets of your SMSF; in addition, an investment strategy of this type must fall in line with the investment strategy set forth by your SMSF.
When you choose the fixed interest rate terms for your loan, you are guaranteeing steady repayment amounts for the period of your terms, which range from one to five years.
Features of the BankSA Super Fund Fixed Rate Home Loan
- Loan-to-Value Ratio (LVR).
For an account where the SMSF trustee is an individual, the loan amount can be up to of the value of the property. When the trustee is a company, of the value of the property may be borrowed.
- Loan terms.
The fixed rate period for this loan cannot exceed years, but the life of the loan can be spread out over .
- Repayment frequency.
You are permitted to make principal and interest repayments weekly, fortnightly and monthly, but when making interest-only repayments you can only make these each month.
- Repayment types.
Your SMSF may make additional repayments on this home loan. During the fixed rate period you are restricted to make $10,000 worth of additional repayments annually, yet during the variable rate terms additional repayments may be made without limit.
- Offset account.
A partial offset account is an option during the fixed rate period, and this changes to a 100% offset account when the loan reverts to a variable rate.
- Loan amount.
An SMSF may borrow anywhere from to towards the purchase of a residential property that is to be used as an investment.
Fees you can avoid
- Annual fee. BankSA charges no annual fee for the Super Fund Fixed Rate Home Loan.
Fees you can’t avoid
- Loan establishment fee. is paid to the bank for the preparation and establishment of your investment home loan.
- Valuation fee.
In the event that the property being used as security needs to be assessed for its worth, the borrower will be charged. This third-party fee starts at .
- Yearly fee.
Your account will be charged yearly for the maintenance of your account.
- Mortgage stamp duty.
The amount of this government enforced charge will be dependent on where the investment property is located.
Calculate your repayments by filling in some of your details
How to apply for the BankSA Super Fund Home Loan
Be sure that it and you meet the following eligibility requirements first:
Australian residents who have or are planning to start an SMSF are welcome to apply.
- Trust deed.
There must be an expressed power to borrow in the SMSF trust deed.
This home loan is only available as an investment loan for a residential property that is located within Australia.
Be prepared with the following documentation for when they call to discuss your loan options with you:
- SMSF documents.
A certified copy of your trust deed is required, as are financial statements that show contributions from members.
- Company trustee. In the event that the SMSF trustee is a company then a certificate of incorporation will be needed. You will also be asked to provide an accountant’s letter stating that the company does not trade.
Residential property investment is an innovative way to grow an SMSF’s funds and assets. Compare the rates and fees that other banks are offering with this loan to see where your SMSF will get the most benefit.