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Empower Your SMSF to Invest with Confidence
Harness the full potential of your Self-Managed Super Fund with a tailored SMSF loan solution.
At Legacy Mortgage Solutions, we specialise in guiding you through the complexities of SMSF financing, ensuring your fund secures the optimal loan to meet your investment ambitions.
At Legacy Mortgage Solutions, we specialise in guiding you through the complexities of SMSF financing, ensuring your fund secures the optimal loan to meet your investment ambitions.
Financing Through Your SMSF
Our promise to you
Investing through your SMSF offers a unique opportunity to build long-term wealth for your retirement. However, navigating SMSF borrowing requires specialised expertise and strict adherence to regulatory guidelines. We’re here to help by providing:
Expert Insight
We simplify the complexities of SMSF loans, breaking down loan structures in clear, straightforward language.
Access to Specialist Lenders
Our strong relationships with lenders experienced in SMSF finance give you access to competitive rates and tailored products for superannuation investments.
Customised Loan Strategies
We work closely with you to design a financing solution that aligns with your SMSF’s goals - whether it’s property investment or diversifying into other assets.
Regulatory Compliance
We work closely with your accountant or financial advisor to ensure the structure is meeting your regulatory compliance requirements.
Ongoing Support
From application to settlement and beyond, our team is committed to providing continuous advice as your SMSF evolves.
Are you located outside of Melbourne? Get in touch and we can help find the best solution for you, no matter where in Australia you’re located.
How it works
Our SMSF Loan Process
Discovery Session
We begin with an in-depth conversation to understand your SMSF, its investment objectives, and your financial profile.
Tailored Strategy Development
Based on your goals, we craft a bespoke finance plan designed to optimise your SMSF’s borrowing capacity while ensuring full regulatory compliance.
Specialist Lender Comparison
We assess offers from a panel of lenders experienced in SMSF loans, ensuring you receive the most competitive and suitable options available.
Application & Approval Guidance
We manage the documentation and guide you through the application process, negotiating on your behalf to secure favourable terms and prompt approval.
Settlement & Ongoing Support
After a smooth settlement, we continue to support you—whether through refinancing advice or ongoing compliance reviews as your fund evolves.
SMSF Loans available in Melbourne
Understanding SMSF Loan Options & Regulatory Considerations
SMSF loans are distinct from conventional loans, combining tailored financing with strict regulatory adherence. Here’s an in-depth look at the options and considerations:
Limited Recourse Borrowing Arrangements
The LRBA is the standard structure for SMSF loans. Under an LRBA, the lender’s claim is restricted solely to the asset acquired with the loan. This protects the remainder of your SMSF’s assets, provided the arrangement meets ATO guidelines and the ‘sole purpose test’ - ensuring the asset is held strictly for retirement benefits.
Interest Rate Options – Fixed & Variable
Choose a fixed-rate option for predictable repayments or a variable-rate option to potentially benefit from market fluctuations. We assess each option in light of your fund’s long-term strategy and risk tolerance.
Loan-to-Value Ratios & Borrowing Capacity
SMSF loans typically feature more conservative LVRs than conventional loans. Understanding these ratios is key, as they determine the maximum amount your SMSF can borrow relative to the asset’s value. Our team helps you evaluate your borrowing power to maintain a balanced risk profile.
Flexible Repayment Structures
Tailor your repayment schedule to match your SMSF’s cash flow needs. Options may include interest-only repayments during the early investment phase, transitioning to principal and interest repayments as your asset matures, ensuring liquidity and long-term stability.
Government Regulations & Compliance
SMSF loans must adhere to stringent regulations set by the ATO and the Superannuation Industry (Supervision) Act. This includes compliance with the ‘sole purpose test’—investing solely for retirement benefits—and maintaining proper documentation and periodic reviews. Our expertise ensures your loan remains compliant, preserving your fund’s tax concessions and integrity.
Tax Considerations & Indirect Incentives
While there are no direct government incentives for SMSF loans, investing through an SMSF may offers significant tax advantages. These could include concessional tax treatment on earnings, capital gains tax discounts, and depreciation benefits on investment properties. We collaborate with your accountant to structure your finance in a tax-effective manner that maximises these benefits.
Specialised Loan Features
Some lenders provide extra features tailored to SMSF needs, such as extended rate locks or redraw facilities. These features offer additional flexibility and security, and we’ll help you determine if they complement your SMSF’s investment strategy.
Access the best lenders in Australia to help find the best SMSF loan!
Support
Frequently asked questions
Everything you need to know about securing your SMSF loan in Melbourne.
What is an SMSF loan?
An SMSF loan enables your self-managed super fund to borrow funds for investment purposes, typically for property or other asset acquisitions, while complying with strict superannuation regulations.
Who can access an SMSF loan?
Your SMSF must meet regulatory standards, including a documented investment strategy and compliance with borrowing rules. You can work with your accountant or financial advisor to see if an SMSF structure and loan is right for you.
What is a Limited Recourse Borrowing Arrangement (LRBA)?
An LRBA is a specialised loan structure that limits the lender’s claim to the purchased asset only, protecting your SMSF’s other assets and ensuring compliance with ATO guidelines.
Can I use an SMSF loan to invest in residential property?
Yes, many SMSFs invest in residential property. However, strict rules govern related party transactions and investment criteria, which we’ll help you navigate.
How do SMSF loans differ from conventional loans?
SMSF loans are designed to meet superannuation laws, often involving LRBA structures and additional regulatory requirements, unlike typical residential or commercial loans.
What documentation is required for an SMSF loan?
You’ll need your SMSF trust deed, recent financial statements, a copy of your investment strategy, and other relevant financial records. We’ll assist you in preparing all necessary documents.
What fees are involved with an SMSF loan?
Fees can include application, legal, valuation, and ongoing service fees. We ensure you’re informed of all costs upfront, allowing you to make an informed decision.
How long does it take to secure an SMSF loan?
The process generally takes a few weeks, though timelines may vary based on your SMSF’s complexity and lender requirements.
Can I refinance my SMSF loan?
Yes, refinancing is an option to secure better terms or adjust your loan structure as your fund’s needs evolve. We’ll help review your options and guide you through the process.
What risks should I consider with SMSF borrowing?
SMSF loans carry risks such as market fluctuations and strict compliance requirements. We work closely with you to assess and manage these risks effectively.
Still looking for more advice?
Can’t find the answer you’re looking for? Please chat to our friendly team.
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Not sure what kind of loan you need?
The major benefit of using a broker to finance other large purchases besides property is obtaining finance that is tailored to fit your current financial circumstances and needs. With depreciating assets, the right finance can also potentially save you money on interest and fees, or potentially help you maximise your tax benefits. AND MORE – Not sure what kind of loan you need for your current financial circumstances? That’s our job. We deliver tailored finance solutions chosen from a panel of leading lenders, and give you peace of mind that your loan is working for you. Contact us today to find out all the ways we can help you.
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