Commonwealth Bank SuperGear Resi Variable Home Loan

Rates and Fees verified correct on December 5th, 2016

Increase your investment power with the Commonwealth Bank’s SMSF SuperGear loan package.

SuperGear could be a financing solution to your residential property. Whether you’re interested in purchasing a new home or refinancing an old one through your Self Managed Super Fund (SMSF), SuperGear may be able to help.

The Commonwealth Bank also makes it easy to manage your investment money with the SMSF Commonwealth Direct Investment Account. This is an option for you to keep your cash when you are in between investments. Here you can manage all of the funds movements and review your transactions instantly.

Things to consider about the CBA SuperGear Resi Variable Home Loan

Only borrowers interested in property investing will be considered for the SuperGear Resi Variable rate loan. It should also be noted that before you’re able to take out this loan you must have a signed form from your financial planner or accountant showing that property will align with your SMSF investment strategy.

The SuperGear is a unique tool for home investors as it allows you to refinance an existing SIS Act compliant investment property loan.

Features of the CBA SuperGear Resi Variable Home Loan

  • Loan amount. The minimum amount of funds you may borrow with this loan is .
  • Loan terms. Depending on the type of property you are investing in, the terms for your loan may vary. Residential property borrowers will have up to years to pay the balance of the loan, while rural and commercial investors will have 15 years.
  • Loan-to-Value Ratio (LVR). Like the loan terms above, the LVR will depend on the details of the property. For residential investments, you may borrow up to of the property’s value. Commercial investors may borrow up to 65% LVR and rural property investors may borrow 60% of the value.
  • Interest coverage threshold. This is a ratio used by banks to determine the percentage of assets a borrower has to pay off their debt. For this loan product, you must be able to cover 125% of the value of the loan.

Fees

There are a number of fees involved with this SMSF home loan.

  • Establishment fee. In order to establish the pre-packaged SuperGear operating structure and lending facility you will be charged 0.80% of the loan amount or a maximum of if the loan is residentially secured.
  • Product maintenance fee. In order to support the ongoing administration of the loan, your account will be charged $25 per month.
  • Loan service fee. To help support the ongoing administration costs that are a part of your loan you will be charged $10 a month for residential investments or $20 per month for those that are rural or commercial.

Keep in mind that you’ll also need to factor in the costs of an accountant or financial planner, as you’ll need to supply CBA with a signed pro-forma. You’ll also need to pay other purchase costs including stamp duty, valuation costs, legal fees and more.

How to apply for the CBA SuperGear Resi Variable Home Loan

If you would like to apply for this home loan, please speak to a mortgage broker or CBA directly.

There are a number of eligibility requirements that you must meet to be eligible for this loan:

  • Fund size. There must be at least $200,000 in net assets in the SMSF before CBA can fund the loan.
  • Accumulation phase requirement. The member of the SMSF must be in the accumulation phase, not the pension phase, once the loan begins.
  • Interest cover threshold. The borrower must have at a minimum 125% of the estimated annual interest repayment in the form of current and ongoing income capacity.
  • Trustee. For a SuperGear loan, the SMSF must have a corporate trustee. Individual trustee applications will not be accepted.

There are a number of documents required, including:

  • Finances: A financial outline of your plans for the investment is required along with audited SMSF financial statements for the prior three years.
  • SMSF trust deed: A copy of your current SMSF trust deed will be reviewed and approved by the bank’s legal experts.

Real estate investing can be a good source of continued income if you have the right loan programs supporting it. Compare the benefits of the Commonwealth Bank’s package with other SMSF offers to ensure that all of your investment needs are going to be covered.

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This page was last modified on 31 July 2014 at 10:07.

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