For SMSFs looking to purchase residential investment property, most lenders will restrict your loan to 80% of the property value: if you have a strong asset position and good cash flow, depending on the security type.
Although SMSF loan structures can be quite complex, there are specialist SMSF home loans that are specifically designed to finance residential investment properties in the trust. At 2V, we know which lenders will quickly
approve your SMSF loan with great rates.
The general features of the loans are as follows:
• The security trust holds the legal title.
• The SMSF holds the beneficial interest in the property.
• The lender has limited recourse only to the mortgaged property.
• If the SMSF owns a rental property, any money received will be paid directly to the SMSF.
• Legal title is transferred to the SMSF once the property has been completely paid off.
• Borrower is the SMSF trustee, who can be either an individual or a company that is non ASX listed.
• A security custodian holds the property on trust for your SMSF.
• Mortgagor is the Security Custodian of the SMSF, which is usually a company. The role of the security custodian is to hold onto the property for the SMSF, until it is paid out and can be transferred