Sun Capital SMSF Finance

At Sun Capital, we understand the importance of building with certainty. That’s why we provide fast access to funds for your Self-Managed Super Fund.

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Loan Size:

up to $5m ($2.5m per security)

Max LVR:

80%

Lowest Rate:

5.5%

Term range:

up to 30 years

If you want to invest in residential or commercial property but don’t have enough cash in your SMSF, we provide the guidance necessary to set up these structures through accountants and lawyers.

This clarifies the finance suitability, tax benefits, and asset protection available to you, allowing you to determine whether investing in this way is right for you.

We offer a range of finance options for SMSFs borrowing to purchase residential or commercial property, ensuring flexibility in commercial leasing. We only lend to non-trading corporate entities acting as trustees.

Trust us to make your investment dreams a reality with our SMSF loans.

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We are proud to have assisted hundreds of people like you with the finance they need to move forward

If you need finance and fast please contact us today.

Frequently Asked Questions

What is an SMSF loan?

An SMSF loan is a type of loan that allows individuals to borrow money for their self-managed super fund. This loan is unique as it can be used to purchase an investment property directly, giving investors more control over their super fund’s assets. Additionally, the loan can also be used for a variety of other investment opportunities, such as investing in overseas shares or purchasing units in a managed fund. However, it’s important to note that while SMSF loans offer flexibility and control, they also come with additional responsibilities and limitations. As with any financial decision, it’s important to understand the risks and benefits before proceeding.

What are the benefits of an SMSF loan?

One of the primary advantages is increased control over investment decisions, allowing for a more personalised approach to superannuation. SMSF loans also offer greater flexibility in terms of loan structures and repayment options. With an SMSF loan, it is often possible to borrow a larger amount of money than with a traditional superannuation fund, allowing for further investment opportunities. Plus, an SMSF can provide tax benefits and potential asset protection. Overall, an SMSF loan can provide individuals with greater control and flexibility over their superannuation fund, leading to potential financial benefits in the long run.

How does an SMSF loan work?

The loan is structured so that if the borrower defaults, the lender only has recourse over the underlying asset being purchased, not other assets in the SMSF. This type of loan arrangement allows SMSF members to leverage their superannuation funds to invest in property, potentially yielding higher returns than traditional investment vehicles. However, it’s important for SMSF trustees to understand the risks and obligations associated with SMSF loans before making any investment decisions.

How do I apply for an SMSF loan?

Firstly, you’ll need to ensure you have the necessary documentation to support your application, including a valid SMSF trust deed, financial statements, and proof of income for all fund members. It’s also important to understand the lending criteria of different lenders and compare their interest rates and fees. When you’re ready to apply, you’ll need to complete an application form and provide all required documentation.

How much can I borrow with an SMSF loan?

What are the interest rates for SMSF loans?

Generally, interest rates for SMSF loans are higher than regular home loans due to the higher risk associated with these loans. However, competitive rates are still available in the market, and borrowers can shop around and compare rates to find the best deal. It’s important to note that interest rates are not the only factor to consider when choosing an SMSF loan, as there are other fees and charges to take into account.

What are the repayment terms for SMSF loans?

The specific repayment terms will vary depending on the lender, but most loans have a set timeframe for when the loan must be repaid. One common repayment method is through monthly instalments, where borrowers make regular payments towards the loan over a set period of time. Some lenders may also offer the option to make additional repayments or pay off the entire loan early without incurring any penalties.

What are the eligibility requirements for SMSF loans?

Just like any other property investment, purchasing real estate through an SMSF requires financial support. That’s where SMSF loans come in. To be eligible for an SMSF loan, you need to meet specific requirements. Firstly, you must have an established SMSF with a minimum balance of $200,000. Additionally, your fund needs to have its own individual trustee or company trustee structure, and you will need to mortgage a property that complies with the legal superannuation requirements. Meeting these eligibility criteria are essential for securing an SMSF loan and investing in property through your self-managed super fund.

What are the risks of an SMSF loan?

One of the biggest risks is the impact it can have on your retirement savings. If you’re unable to repay the loan, your fund’s assets could be seized as collateral – this could have serious consequences for your retirement plans. Additionally, there are strict regulations surrounding SMSF loans, meaning you’ll need to be confident in your ability to comply with them. It’s also important to consider the interest rates associated with SMSF loans – they can vary widely, so make sure you compare different lenders to get the best deal.

How can I compare SMSF loans?

If you’re looking to compare SMSF loans, it’s important to consider a few key factors. Firstly, think about the interest rates and fees associated with each loan option. Compare the rates to ensure you’re getting the best deal possible. Secondly, consider the flexibility of each loan. Does it allow for additional repayments, or early repayment with no penalties? This can save you money in the long run. You may also want to consider the level of customer support offered by each lender. Do they have a dedicated team to assist with SMSF loan queries? Researching and comparing these factors can help you choose the best SMSF loan option to suit your needs.