SMSF Commercial Loan

SMSF Commercial Loan

A super investment choice

a SMSF commercial loan (opposed to a SMSF Home Loan) can be a great way to finance a  business and is used by people who are looking to invest their superannuation into commercial property.The problem is that banks (and most other lenders) have very strict  procedures when it comes to this kind of loan and it can be difficult to get approval due to the higher level of risk involved. Fortunately, LKFS know which lenders have less rigid lending criteria.

Generally speaking, lenders will first look at your asset position. After this, they will check to see if you have a varied investment portfolio and at your over all investment experience. Strong loan security is also one of the best method to increase your chances of approval.

Borrowing money from inside an SMSF is a very tax effective form of funding, although the process can be complex. As such, it is recommended that clients always seek the advice of a experienced and licensed Financial Planner or Loan Broker. 

Some things to consider:

  • With a SMSF loan, the maximum you can borrow is 70% percent of the property value
  • The interest rate for a SMSF commercial loan is generally higher than other types of loan
  • It's always best to have an varied SMSF investment portfolio to minimise risk and provide security to the lender
It's about making the right choices 

If you're looking to apply for a commercial SMSF loan, it's always best to consult with a professional. There are many policies revolving around what can and can't be done with a SMSF, and on top of this, it's usually specialist lenders that offer the best packages for this loan type. LKFS has been around for over 21 years and has helped over 30,000 people find the option that is best for them. So why not give us a call on 1300 930 106  and get some free advice? 

Alternatively, you can find more information here.

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