Refinancing SMSF loans

Viewing 7 posts - 1 through 7 (of 7 total)

wilko1
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@wilko1
Join Date: 2010
Post Count: 510
October 23, 2013 - 7:43 am
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)
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
October 23, 2013 - 8:21 am
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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Colin Rice
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@fms
Join Date: 2011
Post Count: 338
October 23, 2013 - 8:23 am
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.
Colin Rice | CDR Finance
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Mick C
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@shape
Join Date: 2010
Post Count: 1,099
October 23, 2013 - 10:50 am
Sorry only can apply for the loan to purchase the asset.
– No top up etc…
Mick C | Shape Home Loans
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Richard Taylor
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@qlds007
Join Date: 2003
Post Count: 12,024
October 24, 2013 - 11:05 am
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 | Australia's leading private lender
Jimmy86
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@jimmy86
Join Date: 2013
Post Count: 46
November 8, 2013 - 2:03 am
That's actually a great option ^ Qlds007
Jimmy86 | Future Assist SMSF Specialists - Bris | Melb | Syd
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Arun Bhuta
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@arun-bhuta
Join Date: 2014
Post Count: 41
March 29, 2014 - 12:43 am
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.