SMSF Home Loan at Low-Interest Rates in Sydney

Did you know that you can use your self-managed super fund or SMSF to take a home loan to invest in property? Not only do you get tax breaks and rental income, but your capital equity also grows and appreciates over the years! This pays you handsome dividends at the end of the tenure of your loan or at the time of your retirement, whichever is earlier.

Local Finance Guru is the leading loan broker in Sydney that can help you with this endeavour. Our financial experts will assist you with an SMSF home loan. Equipped with in-depth knowledge of both SMSF and the home loan market, we help you get the best SMSF home loan interest rates and invest in property that sees your asset grow handsomely over the years.

How Does an SMSF Home Loan Work?

In simple terms, the SMSF lets you contribute a part of your income to the fund that you manage. An SMSF home loan is a loan taken by the SMSF to buy an investment property. The rental income or any capital gains on such property becomes part of the self-managed super fund. This increases the size of your SMSF that you get at the time of your retirement.

However, SMSF cannot be used as collateral and no lender has access to them. Neither you nor any of your trustees gain from the SMSF. It is a protected asset by law and accessible to you only after your retirement. There are several other conditions attached to an SMSF property loan, such as:

  • The property purchased by SMSF cannot be acquired from a fund member.
  • The property cannot be used by a fund member as a residence (with a few exceptions).
  • The property cannot be rented to a fund member.
  • The property cannot be rented to any relatives or related parties.

Benefits and Features of SMSF Home Loan

The SMSF may seem complicated to you compared to a normal home loan. It is best to get the services of an experienced home loan broker and self-managed super fund loan specialist before you try to take an SMSF loan for a property. Our SMSF specialists will guide you through every aspect of an SMSF loan, simplifying the entire process, and also helping you obtain the best SMSF loan interest rates.

Here are the various benefits and features of SMSF loans for property:

SMSF Home Loan Sydney
SMSF Loans for Property Sydney

Property income to payoff loan

This is one of the most appealing benefits of the SMSF home loan or SMSF commercial property loan. You can use the income that the rental property generates to pay off the loan.

Reduction in tax liability:

As you can claim tax benefit on the interest paid on the SMSF home loan, it decreases your tax liability. However, to claim the tax deductions, you need to ensure that it is done as per the prevalent tax rules & regulations. Our skilled and experienced team of brokers can guide you on how to apply tax deductions.

Reduction in capital gain tax:

As the taxation generally applies only during the accumulation stage, the capital gains will most likely be exempt from any taxes.

Appreciation of property’s value:

Another benefit for you in taking an SMSF loan for a property is the appreciation of the asset’s value.

The self-control of funds:

You always have direct control over your SMSF and how it is utilised. This helps you keep a close eye on the funds and plan their growth accordingly.

Increase in retirement savings:

The increase in retirement savings is also a big draw for most borrowers as it adds to the size of your funds considerably.

Secure asset

Your SMSF is always secure and, in case of a future default in payment, the lender cannot claim your self-managed super fund.

SMSF Members and Trustee Eligibility

You can have between one to four SMSF members who should ideally be from the same family. However, there can be some exceptions to this rule. Check with our qualified broker to know this in detail and understand your eligibility. Another criterion is that the members of the SMSF who are related should not be working under each other.

The self-managed super fund trust is similar to any other trust and is administered by trustees or administrators. You can either be the sole trustee or all SMSF members can be the trustees. Or, you could make all the members directors in a company that manages the SMSF trust. However, the trustees or the company directors cannot be financially compensated for managing the SMSF.

Why Choose Local Finance Guru for SMSF Loans for Property in Sydney?

Most people find it difficult to manage SMSF. They find it even more challenging to obtain an SMSF home loan and to meet the rigorous conditions of the lenders. Further, there are only a few SMSF lenders available in the market and you may find it difficult to negotiate the best deals if you are not familiar with all aspects of SMSF.

Local Finance Guru has a team of SMSF specialists that are experts in every aspect of SMSF and SMSF commercial property loans. They can answer all your queries regarding SMSF loans. Call us today on 0430 411 466 or mail us at to discuss your SMSF home loan options in Sydney.