What are the costs involved with SMSF loans?

There are a few costs associated with SMSF loans such as fees, interest and taxes. The fees you may be required to pay include application, establishment or exit fees.

The interest rate on an SMSF loan will vary depending on the lender and the terms of the loan. However, in general, SMSF loans tend to have higher interest rates than traditional home loans. This is because SMSF loans are considered to be a higher risk, as the lender is not protected by the government guarantee that applies to traditional home loans.

Another cost you may be required to pay include taxes such as stamp duty. However, before jumping into opening a self-managed super fund, it is important to consult a mortgage broker to ensure you are making the right decision for your individual circumstances. To learn more about SMSF lending and how it may fit into your financial plan, speak to us.