SMSF Lending with Greenbridge Finance

Greenbridge Finance assists clients with SMSF lending for the purchase of residential and commercial investment properties through a Self-Managed Super Fund (SMSF). SMSF lending is more complex than standard property lending, as it must comply with superannuation and lending regulations, and the loan structure must be set up correctly from the beginning.

We work with lenders that offer SMSF loans and assist clients, accountants, and financial planners throughout the lending process.

What is SMSF Lending

SMSF lending allows a Self-Managed Super Fund to borrow money to purchase an investment property through a structure known as a Limited Recourse Borrowing Arrangement (LRBA). Under this structure, the lender’s rights are limited to the property held within the SMSF security trust.

SMSF loans are generally used to purchase:

  • Residential investment properties

  • Commercial properties

  • Business premises (leased to your own business in some cases)

Greenbridge Finance can help you understand how SMSF lending works and guide you through the process.

Residential SMSF Property Loans

SMSFs can purchase residential investment properties through an SMSF loan, provided the property is used for investment purposes only and not lived in by fund members or related parties.

Lenders usually assess:

  • SMSF financial position

  • Super contributions

  • Rental income from the property

  • SMSF savings and liquidity

  • Loan to value ratio

  • Credit history of fund members

SMSF residential loans usually require larger deposits compared to standard home loans.

Commercial SMSF Property Loans

SMSFs can also purchase commercial properties, including business premises. In some cases, your business may be able to lease the commercial property owned by your SMSF, subject to superannuation rules and professional advice.

Commercial SMSF property may include:

  • Offices

  • Warehouses

  • Factories

  • Retail shops

  • Medical suites

  • Industrial properties

Greenbridge Finance can assist with SMSF commercial property lending and work with your accountant or financial planner where required.

Things to Consider with SMSF Lending

SMSF lending is more complex and usually involves higher costs and stricter lending requirements compared to standard property loans. It is important to obtain advice from your accountant or financial planner before proceeding with SMSF borrowing.

Things to consider include:

  • SMSF trust structure

  • Bare trust / security trust setup

  • Deposit requirements

  • Loan interest rates and fees

  • Ongoing SMSF compliance

  • Investment strategy of the SMSF

  • Cash flow and super contributions

Greenbridge Finance works with your accountant and solicitor to help ensure the lending structure is set up correctly.

The SMSF Lending Process

Greenbridge Finance will guide you through the SMSF lending process:

  1. Discuss SMSF structure and borrowing capacity

  2. Confirm SMSF trust and bare trust structure

  3. Review SMSF financials and contributions

  4. Identify suitable lenders

  5. Submit SMSF loan application

  6. Property valuation and lender assessment

  7. Loan approval

  8. Loan documents and settlement

  9. Ongoing loan management

SMSF loans usually take longer to arrange than standard home loans due to the additional structure and documentation required.

Speak With Greenbridge Finance

If you are considering purchasing a residential or commercial property through your Self-Managed Super Fund, Greenbridge Finance can assist you in arranging SMSF lending and guiding you through the process.