A Self-Managed Super Fund (SMSF) with a corporate trustee can access a mortgage to purchase property, offering greater control over investments. With the right financing options, SMSFs can maximise returns while complying with relevant regulations.
Benefits to Trustees:
Investment Control
SMSFs allow you to have full control over property investments, including the choice of property and strategy.
Tax Efficiency
Potential tax benefits through leveraging superannuation for property investment.
Asset Protection
Corporate trustees can offer additional protection for SMSF assets.
Diversification
Broadens investment opportunities by adding real estate to the SMSF portfolio.
Benefits of Mortgage Brokers Assisting SMSF with a Corporate Trustee
Expert Guidance – Mortgage brokers specialise in SMSF loans and can guide clients through the complexities of the process.
Tailored Solutions – Brokers can help find mortgage products best suited to SMSFs with corporate trustees, ensuring compliance and long-term benefits.
Access to a Wide Range of Lenders – Brokers can connect clients with lenders who understand the specific requirements of SMSF loans, ensuring the most favourable terms.
Time and Effort Savings – A mortgage broker simplifies the process by managing the paperwork, liaising with lenders, and providing ongoing support throughout the loan's life.
Features
Eligibility Criteria – SMSFs must meet specific regulatory requirements, including the purchase being solely for the benefit of members' retirement funds.
Loan Options – Tailored mortgages that fit within the SMSF framework, ensuring compliance with Australian Taxation Office (ATO) regulations.
Corporate Trustee – A corporate trustee can streamline the management of the SMSF, ensuring better governance and compliance..
Loan Repayments – Payments can be made using the income generated from the property within the SMSF.
Mortgage brokers should Partner with Mortgage Street to access competitive SMSF mortgage products and expert guidance for clients with a corporate trustee. By partnering with Mortgage Street, brokers gain access to a comprehensive suite of SMSF mortgage products that offer flexibility and tailored terms to suit the unique needs of clients.
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Our goal at Mortgage Street is to provide you your customers with first-class service and innovative products to help you deliver solutions to your clients who don’t fit traditional lending criteria. But if your clients don’t qualify for a bank loan, Mortgage Street can always find alternatives. With 24 mortgage options available, we can help your customers find the right fit for their unique situation.
7 reasons why you should work with Mortgage Street
Mortgage Street is committed to providing a modern, efficient service to our clients. By distributing home loans through professional Australian mortgage brokers, we can offer a convenient and streamlined digital process that allows you to apply for a loan, submit documents, and track the progress of your application from the comfort of your own home.
Mortgage Street is committed to providing a modern, efficient service to our clients. By distributing home loans through professional Australian mortgage brokers, we can offer a convenient and streamlined digital process that allows you to apply for a loan, submit documents, and track the progress of your application from the comfort of your own home.
Mortgage Street is committed to providing a modern, efficient service to our clients. By distributing home loans through professional Australian mortgage brokers, we can offer a convenient and streamlined digital process that allows you to apply for a loan, submit documents, and track the progress of your application from the comfort of your own home.
A Mortgage Street accredited mortgage broker can help you to maximise your borrowing capacity by advising on the best loan structure and providing guidance on how to strengthen your application. This can be helpful if you have a complex financial situation or are self-employed.
If you are planning to purchase an investment property, a Mortgage Street accredited mortgage broker can help you understand the tax implications of negative gearing and advise on the best home loan options to suit your goals.
A Mortgage Street accredited Mortgage brokers have access to a wide range of lenders, including those that may consider larger loan amounts. This can be especially useful if you are looking to purchase a more expensive property or undertake extensive renovations.
Many lenders require mortgage insurance for home loans with a loan-to-value ratio (LVR) of over 80%. By working with a Mortgage Street accredited mortgage broker, you may access lenders that do not require mortgage insurance up to an LVR of 85%, saving you money on your loan.
To help you find what you’re looking for, we’ve grouped our lending criteria into key categories.
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- Loan Application Documentation Checklist
- MSt 134 Request for Hardship Assistance
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FAQ
What is a Limited Recourse Borrowing Arrangement (LRBA) in the context of SMSFs?
An LRBA allows an SMSF to borrow money to purchase a single asset, or a collection of identical assets, with the lender's recourse limited to that asset in the event of default. This arrangement involves setting up a separate trust to hold the asset, ensuring that only the asset purchased serves as security for the loan
How does the corporate trustee structure benefit SMSFs in securing mortgages?
Mortgage Street prefer SMSFs with corporate trustees due to enhanced governance and compliance. A corporate trustee provides a more robust framework for managing the fund's assets, reducing personal liability risks and ensuring adherence to superannuation laws, which simplifies the lending process.
What types of properties can an SMSF with a corporate trustee invest in?
An SMSF can invest in various property types, including residential properties, commercial premises, and industrial properties. The investment must align with the fund's investment strategy and comply with regulatory requirements, such as not acquiring property from related parties or using borrowed funds for personal use.
Are there specific compliance obligations for SMSFs with corporate trustees when obtaining a mortgage?
Yes, SMSFs must comply with regulations such as ensuring the sole purpose test is met, conducting transactions at arm's length, and adhering to borrowing restrictions. It's crucial to maintain proper documentation and ensure that all investments serve the retirement benefits of the fund's members.
What are the key considerations for mortgage brokers when assisting SMSFs with corporate trustees?
Mortgage brokers should understand the regulatory framework governing SMSFs, including investment restrictions and compliance obligations. It's essential to collaborate with financial advisors and accountants to ensure that the SMSF's investment strategy aligns with its borrowing capacity and that all legal requirements are met.
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Key points
+LVR stands for the loan-to-value ratio. LVR is the amount of your loan compared to the Bank’s valuation of your property offered to secure your loan expressed as a percentage. Home loan rates for new loans are set based on the initial LVR and won’t change during the life of the loan as the LVR changes.
*Comparison rate: The comparison rate is based on a loan of $150,000 over the term of 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Loan applications, refinances and balloon amounts are subject to credit assessment.
Conditions, credit criteria, fees and charges apply. Based on Mortgage Street’s credit criteria, residential lending is not available for Non-Australian resident borrowers. Interest rates subject to change. Before making a decision, it’s best to read the terms and conditions.