Learn everything you need to know about SMSF loans.
Learn everything you need to know about SMSF loans. A self-managed super fund (SMSF) is managed by individuals when deciding to take control of their money instead of putting it into a commercial retail or industry super fund. A growing number of Australians are managing their SMSF and controlling their retirement planning. An individual is responsible for his fund once he decides to set up SMSF. A maximum of six members in an SMSF trust and trustees can take loans to purchase residential and commercial properties. Strict lending criteria Borrowing by SMSF is highly regulated, and lenders are more conservative in lending here when compared to other individuals. Banks offering SMSF Loans in Sydney assess the SMSF applicant borrowing capacity. The main hurdle faced by an SMSF applicant is that they have to show sufficient income in the SMSF trust to repay the monthly loan obligation. Typically, a bank will look at two years of tax returns of SMSF Tru...