All Topics / Finance / Refinancing SMSF loans

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  • Profile photo of wilko1wilko1
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    @wilko1
    Join Date: 2010
    Post Count: 510

    Does anyone know If you own a property outright in your Superfund. (Ie you had a previous non recourse loan that has now paid off)

    Can you take finance out against that property up to 80% again (Ie a new non recourse loan)

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
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    wilko1 wrote:
    Does anyone know If you own a property outright in your Superfund. (Ie you had a previous non recourse loan that has now paid off)

    Can you take finance out against that property up to 80% again (Ie a new non recourse loan)

    No you cannot. Borrowing can only be done to acquire an asset.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of Colin RiceColin Rice
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    @fms
    Join Date: 2011
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    The only borrowing allowed is for the original property and once paid down can not be re accessed as far as I am aware.

    An offset account is available with some SMSF loan products with interest only up to 15 years available.

    This could be a better option for your next SMSF property if you wanted to preserve the funds that you would normally use to pay down the loan. 

    Always best to consult your accountant/financial planner to ensure you are complying with the SIS act whenever it comes to your SMSF. 

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    Profile photo of Mick CMick C
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    @shape
    Join Date: 2010
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    Sorry only can apply for the loan to purchase the asset.

    – No top up etc…

    Mick C | Shape Home Loans
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    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
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    As said previously hate to say "No".

    Nothing to stop you refinancing one SMSF loan with another SMSF loan (cheaper rate or better terms) but you cannot increase the borrowings.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
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    Profile photo of Jimmy86Jimmy86
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    @jimmy86
    Join Date: 2013
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    That's actually a great option ^ Qlds007 

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    Profile photo of Arun BhutaArun Bhuta
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    @arun-bhuta
    Join Date: 2014
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    Dear Wilko1,

    You can not use the property fully paid for borrowing for deposit or as collateral, but rental income can be considered for serviceability for next property.

    That is why you need to take loan in SMSF with offset account with interest only, this allows you to pay the loan in offset and keep loan out standing.

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