Invest in property using your super with the Macquarie Bank SMSF Property Home Loan
Your Self Managed Super Fund (SMSF) can be used to buy a residential property with the Macquarie Bank SMSF Property Home Loan. Designed specifically for investment purposes, you get the chance to choose the options that work best with your SMSF and can purchase a property using your SMSF balance.
You should also note that Macquarie Bank offer a range of regular home loans for owner occupiers and investors if you do not to wish to use your SMSF for a home loan.
|Product Name||Macquarie Bank SMSF Property Home Loan|
|Interest Rate Type||Variable|
|Interest Rate (p.a.)||5.82%|
|Comp Rate^ (p.a.)||5.60%|
|Minimum Loan Amount||$150,000|
|Maximum Loan Amount||$5,000,000|
|Minimum Loan Term||5 years|
|Maximum Loan Term||30 years|
|Maximum Insured LVR||80%|
|Mortgage Offset Account||No|
|Loan Redraw Facility||No|
|Split Loan Facility||Yes|
|Suitable for Investment||Yes|
|Available as equity loan/line of credit||No|
|Repayment Type||Principal & Interest and Interest Only Options|
|Lender's Legal Fee||$1,430|
|Ongoing Fees||$0 p.a.|
- $0 valuation fee.
- $0 ongoing fee.
- $500 settlement fee.
- $0 application fee.
- $ Legal fee.
- $400 discharge fee.
Things to consider about the Macquarie Bank SMSF Property Home Loan
This loan is suited for investment purposes only, so long as you have an SMSF or are planning to start one, you may use this loan to purchase assets. You may even use it to refinance the home loan of a property that your SMSF has already invested in.
Keep in mind that this loan also comes in a fixed rate version, with terms of between one and five years.
Features of the Macquarie Bank SMSF Property Home Loan
- Loan to value ratio (LVR). This loan allows you to borrow up to 80% of the property value.
- Loan terms. This loan has a maximum loan term of 30 years, meaning you can integrate this loan fully with any long term SMSF investment strategies you may have.
- Repayment frequency. Pay your loan the way you want by choosing to make fortnightly or monthly repayments.
- Repayment types. You have the option of making interest plus principal repayments or to use your extra funds elsewhere by making interest-only repayments. You are also permitted to make unlimited additional repayments.
- Loan amount. Borrow anywhere from $150,000 to $5,000,000 to add an asset to your SMSF.
- Split loan option. This loan allows up to six sub-accounts for those who want to take advantage of both the steady fixed rate and the benefits of a discounted variable rate.
Fees you can avoid
- Monthly fees. There are no monthly maintenance fees with this loan.
- Valuation fee. There's no valuation fee required for this home loan for properties worth up to $2,000,000.
Fees you can’t avoid
- Application fee: $0. This charge covers the administration costs associated with your application.
- Legal fee: $1,430. This fee covers the cost of the legal services needed to initiate this loan by the bank.
- Exit fee: $400. At the end of the loan terms, you will be expected to pay this fee.
How to apply for a Macquarie Bank SMSF Property Home Loan
Make sure that this is the right loan for you first by checking that you meet the following eligibility requirements. It is highly recommended that you apply with the assistance of your accountant or financial planner.
- Existing SMSF. You will have to either already have an SMSF or be in the process of establishing one if you want to use this loan to purchase an investment property.
- Property. The loan is going to be used towards the purchase or refinance of an investment property as part of the SMSF.
Be sure to have the following information is available in order to expedite the application process:
- SMSF information. You will be expected to divulge all information regarding your existing or upcoming SMSF.
- Personal information. All applicants will have to provide complete personal information, including name, birth date and current address.
The flexible features that this loan offers make it one worth looking into but as many banks offer similar products you should compare products in order to ensure that you are getting the best rates with a minimal amount of fees.