Founded in 2011 and powered by one of Australia’s largest non-bank lenders, loans.com.au seeks to help Aussies save money on a range of home and car loans. loans.com.au currently only offers the option to refinance an existing residential SMSF loan, and not for the purchase of a property.
Read more: How to set up a SMSF
loans.com.au SMSF Loans
loans.com.au offers the following refinance SMSF Loans:
Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.99% p.a. | 7.00% p.a. | $2,659 | Principal & Interest | Variable | $null | $720 | 70% | Featured |
| Disclosure | |||||||||
7.49% p.a. | 7.50% p.a. | $2,794 | Principal & Interest | Variable | $0 | $720 | 80% | Featured |
| Disclosure | |||||||||
7.24% p.a. | 7.45% p.a. | $2,726 | Principal & Interest | Fixed | $0 | $710 | 80% | Disclosure | |||||||||||
7.34% p.a. | 7.48% p.a. | $2,753 | Principal & Interest | Fixed | $0 | $710 | 80% | Disclosure | |||||||||||
7.39% p.a. | 7.47% p.a. | $2,767 | Principal & Interest | Fixed | $0 | $710 | 80% |
How does a loans.com.au SMSF Loan work?
An SMSF loan is a home loan used by an SMSF to purchase an investment property. The returns on the investment, which can either be your capital gains or rental payments, are funnelled back into the superannuation fund for your retirement.
loans.com.au currently only offers the ability to refinance SMSF loans, with their SMSF product not available for the purchase of new investment properties.
loans.com.au Refinance SMSF loans are eligible for the refinance of a standard residential investment house, unit or townhouse however are ineligible for the refinance of vacant land or multiple dwellings on one title.
SMSF loans are what’s called a ‘limited recourse borrowing arrangement’ or LRBA for short. This means if the borrower defaults on the loan, the lender can only go after the asset the mortgage is secured against. They can’t go after other assets held in the SMSF, and is why interest rates are typically higher on SMSF loans than regular home loans. This is the main difference between an SMSF loan and a regular home loan.
Read more: SMSF borrowing: a guide
loans.com.au SMSF Loan features
loans.com.au refinance SMSF loans feature:
- Minimum loan amount of $50,000.
- Maximum loan amount of $1,000,000.
- Loan term from 15 to 30 years.
- Option of additional repayments.
- Weekly, fortnightly or monthly payment frequency.
- Maximum loan-to-value ratio of 80%.
- Variable rate.
- Online access via Smart Money app.
loans.com.au SMSF Loan fees
loans.com.au refinance SMSF loans offer no application fees, no monthly fees, no annual fees and no settlement fees when refinancing. There are however some fees that come with the SMSF loan including:
- Valuation fee - $220 or at cost.
- Government fees - at cost.
Application process
loans.com.au refinance SMSF loan application process entails:
- A phone appointment with a lending specialist to organise pre-approval of your loan.
- Check the onTrack app to receive your final approval, mortgage documents and loan agreement. These must be signed and returned via onTrack, which authorises loans.com.au to deal directly with your existing lender.
- From this point, you no longer need to pay your previous lender as loans.com.au will pay the loan out by estimating payout costs based on current balance, rate and repayments.
- Your loan will settle and you'll enjoy the new refinanced interest rate.
Supporting Documents
Some documents you’ll need to refinance with loans.com.au include:
- Your recent Super Fund Statement/s evidencing contributions, cash, investments, rental.
- Evidence of rental income.
- Previous independent legal advice.
- 6 months statement of the loan being refinanced.
- Certified copies of SMSF Trust Deed and Property Trust Deed.
Image by Tyler Hendy via Pexels
Speak to an SMSF lending specialist
Whether you're looking to refinance or purchase investment property with your SMSF our partners can help you find the right SMSF home loan.
Disclaimers
In the interests of full disclosure, Savings.com.au and loans.com.au are part of the Firstmac Group. To read about Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.