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Essentials

Use your SMSF to borrow to purchase residential investment property in Australia.

 

  • Suitable for Australian residents with an established SMSF as well as those planning to establish a SMSF
  • Loan amounts from $200,000 to $2,000,000, giving you the potential to acquire property worth more than your SMSF's available cash funds
  • Use rental income to assist with repayments
  • limited recourse loan where the amount recoverable on default is limited to the secured property itself, and all other assets of your SMSF are protected
  • Choice of repayment types - principal and interest, or interest only
  • Flexible terms from 1 to 30 years (interest only - maximum 5 years)
  • At the end of the interest only term, repayments automatically change to principal, interest and fees for the remainder of the contract term
  • Rates - variable, fixed and combination loans (fixed and variable) available.
     

General advice: This information is general information only and does not constitute any recommendation or advice. The information is current at 26 June 2017, and is subject to change. It has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on the information, consider its appropriateness, having regard to your objectives, financial situation and needs. You should obtain personalised advice from a professional financial adviser and your accountant before making any financial decisions in relation to the matters discussed in this document.


Establishment fee  $1,500
Monthly Loan Maintenance Fee  Nil

Additional fees will apply to cover the following:

  • Where a Guarantee is offered
  • A Property Valuation is required
  • Standard legal costs - to cover the checking of the SMSF Trust Deed and Property Trust Deed, as well as the preparation of security documents
  • Government charges for registering the mortgage over the asset

You will also be required to seek independent financial and independent legal advice at your own expense.

SMSF Investment Property Loan Interest Rates with principal and interest repayments  

Term Annual interest rate Comparison rate1
Variable Rate  5.79% p.a.  5.9% p.a.
Fixed Rates2
1 year fixed 5.99% p.a.  5.92% p.a.
2 year fixed 5.99% p.a. 5.94% p.a.
3 year fixed 6.09% p.a. 5.99% p.a.
4 year fixed 6.39% p.a. 6.12% p.a.
5 year fixed 6.39% p.a. 6.16% p.a.
6 year fixed 7.55% p.a. 6.81% p.a.
7 year fixed  8.05% p.a. 7.23% p.a.
9 year fixed  8.05% p.a. 7.48% p.a.
10 year fixed   8.05% p.a. 7.59% p.a.

SMSF Investment Property Loan Interest Rates with Interest Only repayments

Term Annual interest rate Comparison rate1
Variable Rate  6.30%    6.41% p.a.
Fixed Rates2
1 year fixed 6.46% p.a.  6.43% p.a.
2 year fixed 6.46% p.a. 6.44% p.a.
3 year fixed 6.56% p.a. 6.49% p.a.
4 year fixed 6.86% p.a. 6.62% p.a.
5 year fixed 6.86% p.a. 6.66% p.a.
Things you should know

1. This comparison rate is based on a secured loan of $150,000 over the term of 25 years.  WARNING: The comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

2. Where a fixed rate applies, after the fixed rate period expires the interest rate will revert to the then applicable Variable Rate.