SMSF Loans

Product Description

The Self Managed Super Funds Loan (SFHL) is designed to provide loans to authorised Australian Self-Managed Super Funds (“SMSF”) for the purpose of purchasing residential investment property.

The borrowing structure involves a loan to a SMSF Trustee with a Security Custodian purchasing the residential investment property on behalf of the Super Fund. This Security Custodian, which must be a limited liability company, then holds the property as an asset in trust for the Super Fund, which has the beneficial right (but not the obligation) to acquire the underlying asset at a future date.

The loan is secured against the investment property and while the loan is ideally self-servicing from the rental income derived from the property, servicing may also come from any other income received or assets held by the SMSF Trustee.

The loan is limited in recourse, with St.George Bank’s (also referred to as ‘Bank’) right against the SMSF Trustee limited to the Bank’s right as mortgagee in relation to the property. There is no recourse to any other assets of the SMSF or to either the SMSF Trustee or Security Custodian.

Key Benefits / Target Market

The target market is Superannuation Industry Supervision Act (SIS) complying personal Australian Self Managed Superannuation Funds that are allowed to and wish to utilise debt for investment purposes.

The customer benefits include:

• Diversification of possible investment strategy to include direct property acquisition
• Flexible repayment options supporting continued investment diversification
• Potential to accelerate wealth accumulation
• Potential for improved returns
• Gearing & Capital Gains Tax benefits may be realised (independent financial advice must be sought)

Availability

The Super Fund Home Loan is AVAILABLE for:

• Residential property purchases
• Refinance of existing SMSF Home Loan from any external institution (excludes Westpac Group)
• Investment purposes only
• Loans secured by a first registered mortgage only

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