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Super Fund Home Loan

Use your Self Managed Super Fund to buy residential investment property

  • Suitable for those who already have a Self Managed Super Fund (SMSF) or are planning to establish a SMSF.
  • You have an established SMSF home loan on your residential investment property and are looking for flexible options.
  • Use a SMSF to borrow and invest in real estate which is residential investment property - this may be a strategy to diversify your investment portfolio and accelerate wealth creation.
  • A limited recourse loan, so other assets of your SMSF are protected.
  • You may be entitled to receive income tax and negative gearing benefits1.
Enquire Now

A BankSA home loan expert will contact you at your preferred time.

Who is eligible?

  • Ideal for Australian residents planning to establish a SMSF and for Australian residents who already have a DIY Super Fund
  • You have an established SMSF home loan on your residential investment property and are looking for flexible options.
  • For purchase of residential investment property in Australia

Benefits

  • Use rental income to assist in repaying the loan
  • A limited recourse loan where the amount we can recover on default is limited to the secured property itself and all other assets of your SMSF are protected
  • Negative gearing benefits - offset loan interest and expenses against rental income1

Competitive interest rates

Choice of loan term & repayments

Great features!

Loan Amount

  • Minimum amount - $100,000
  • Maximum amount - $2,000,000

Loan to value ratio

  • Up to 72% where the trustee is a individual
  • Up to 80% where the trustee is a company

Compare

Fees
Establishment fee $15002
Monthly administration fee  $12
Other fees and charges apply. See a complete list of fees for loan accounts.
Interest rates
Variable Rate 
Annual rate  p.a.
Fixed Rate 
  Annual rate
1 year Fixed  p.a.
2 years Fixed  p.a.
3 years Fixed  p.a.
4 years Fixed  p.a.
5 years Fixed  p.a.
Repayment options for Super Fund Home Loans
Frequency
  • Choose either:
    • Principal and interest repayments for up to 30 years, or
    • Interest-based repayments for up to 15 years

  Weekly Fortnightly Monthly
Loans with Principal and interest repayments      
Loans with Interest-based repayments      
Learn more:
Additional payments
  • On Super Fund Variable Rate loans, make additional payments at any time
  • On Super Fund Fixed Rate loans, make up to $10,000 each yearin extra repayments without incurring break costs
  • Calculate what you could save by making extra payments
Automatic repayments Set up convenient automatic repayments from your nominated account

Investing in property with a self managed super fund (SMSF)

Under the Superannuation Industry (Supervision) Act 1993 (Cth) (SIS), a trustee of a SMSF is allowed to borrow to purchase residential investment property. It's important to remember that investing in property with your SMSF is a long-term investment strategy, and it's best that you get independent financial advice. If you have questions about Super Fund Home Loans, a BankSA home loan expert can help at any BankSA branch.

Who is eligible?

  • Australian residents planning to establish a SMSF and those who already have a SMSF
  • Your SMSF may be used to purchase residential investment property in Australia.

How it works

  1. You have set up a SMSF or you are planning to do so. If you haven't yet set up a SMSF, your accountant or financial advisor will be able to assist you. For basic information, visit the Australian Taxation Office Self Managed Super Fund webpage.
  2. Ask your accountant or financial advisor about the benefits of borrowing to invest in residential investment property with your SMSF. We can help you with establishing a Super Fund Home Loan at a BankSA branch.
  3. How the SMSF purchases a property:

Step 1: The trustee of your SMSF selects a residential investment property to purchase.

Step 2: The trustee of your SMSF appoints a Custodian to purchase the residential investment property on its behalf.

Step 3: The trustee of your SMSF applies for a Super Fund Home Loan and provides documentation to BankSA.

Step 4: The Custodian pays the deposit and exchanges contracts on the purchase of the residential investment property.

Step 5: If BankSA approves the loan, your Custodian mortgages the property to BankSA to complete the purchase.

Step 6: The trustee of your SMSF pays the legal costs and stamp duty on the purchase.

Step 7: Once the loan is advanced, the trustee of your SMSF collects rent, pays the usual outgoings on the property and makes the loan repayments. It manages the property in the same way as any other real estate investment.

Step 8: The property is held in trust and once the loan is repaid, the legal title may be transferred from the Custodian to the SMSF or the property may be sold.

Key benefits

  • Property held in a SMSF is a limited recourse loan, where the amount that we may recover on default is limited to the secured property itself and all other assets of your SMSF are protected
  • Use rental income to assist in repaying the loan
  • You may be entitled to gearing benefits - offset loan interest and expenses against rental income and income tax benefits - concessional tax rates on income after expenses1.

For more information, speak to your financial advisor or call a BankSA home loan expert on 13 13 76. You can also talk to a BankSA home loan expert at any branch.

Enquire online

  • Enquire now and and a BankSA home loan expert will call at your preferred time.

Call us

  • 13 13 76. To talk with a BankSA home loan expert, say "New Mortgage" when prompted.

Visit a branch

 

What you'll need to apply

There are specific documentation requirements for a Super Fund Home Loan, including:

  • Certified copy of SMSF Trust Deed
  • Certified copy of Custodian Trust Deed, and
  • Evidence of ability to service (e.g. tax returns, rental estimates).

Please note: Super Fund Home Loans must be referred to a BankSA Panel solicitor for review of the SMSF Trust Deed and the Custodian Trust Deed prior to settlement.

Tips

How to apply

Important information

Conditions, fees and credit criteria apply.

View the terms and conditions:

  1. Residential Loan Agreement - General Terms and Conditions
  2. Portfolio Loan Agreement - General Terms and Conditions
  3. Loan Accounts - Charges for specific services and accounts, and

Please read these documents and keep a copy. You can request a paper copy at a branch.
The information on our website is prepared without knowing your personal financial circumstances. Before you act on this, please consider if it's right for you. If you need help, call 13 13 76.

1 The taxation position described is a general statement and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and their interpretation. Your individual situation may differ and you should seek independent professional tax advice on any taxation matters.
2 Other upfront fees and costs may apply.  
3 The comparison rate is based on a loan of $150,000 over a 25 year term. Where a fixed rate term applies, after the fixed rate period expires the interest rate will revert to the relevant Standard Variable Rate. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
4 Before acquiring a deposit product, you should read the terms and conditions available on request at any branch or phoning 13 33 30 to ensure that the product is appropriate for you. Deposit products are issued by St.George Bank, a division of Westpac Banking Corporation AFSL 233714.