The eligibility criteria for SMSF lending include the following:
- Duration of super fund: We can start the process as soon as the SMSF is established.
- Minimum balance: The SMSF must have a minimum balance of $50,000, but we generally recommend between $200,000-$250,000 to start the process.
- Repayment ability: The SMSF must have a sound investment strategy and have the financial capacity to repay the loan.
- Investment suitability: The asset that is being purchased must be suitable for SMSF investment and the loan must be secured against the asset that is being purchased.
The lender may also have additional criteria that the SMSF must meet. It is important to note that the ATO has strict rules governing SMSF lending, and not all SMSFs are eligible to borrow money. If you are considering taking out an SMSF loan, it is important to consult with a financial advisor to ensure that you are meeting all of the requirements.
To learn more about self-managed super fund loans, speak to us about it.