• KK Partners

Changes to SMSF Lending. How will it affect you?

Following APRA's review of lending practices, changes have been made to investor lending policies.  This has caused significant changes in the number of lenders providing SMSF loans and those who remain have updated their lending policies and requirements.


HOW WILL THIS AFFECT BORROWING IN AN SMSF?

For those clients wishing to finance for a residential property purchase within an SMSF, they should now be prepared to:

  • Contribute a 20-30% deposit on the property

  • Have at least 10% of the loan in cash or other assets within the SMSF

  • Use a corporate trustee for both the SMSF and Bare Trust

Lenders are also now placing greater reliance on the expected rental return of the property to cover the mortgage repayments.  Borrowers may find that they cannot obtain the level of finance they might have budgeted for prior to these changes.


Borrowing to purchase a property within an SMSF is an extremely complex area.  Please contact KK Partners to discuss your personal situation.

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