Costs of purchasing a property in an SMSF with a Super Fund Loan

Costs and fees may vary widely depending on the services you need and how the various services and products are provided. Generally, there will be additional costs associated with buying a property in your super fund. For instance, a Super Fund Loan requires a separate trust to be established and the drafting of separate legal instruments such as trust deeds and company constitutions. If you already have a trust deed, a lender may charge a review fee to review all existing trust deed documents to ensure they comply with its loan application requirements.

Below are some of the additional fees/charges that may be applicable when borrowing to buy a property in your super fund rather than outside your SMSF. Other fees may also apply:

  • Advice about superannuation borrowing arrangements
  • SMSF deed and governing rules advice, establishment or amendment fees
  • Bare/Property trust establishment fees
  • Investment asset advice
  • Related party loan documentation fee

Some specialist organisations offer standard documents that already comply with a lender’s requirements for a Super Fund Loan. These organisations can also undertake the daily monitoring and administration of your Super Fund Loan if you desire.

 

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Disclaimer: This information has been prepared by Aurora Finance Group as a guide only. You should not act solely on the basis of this information because it has been generalised and tax laws apply differently to different circumstances. As tax and related laws change frequently, there may have been changes to the law since this information was prepared. None of the comments in this page are intended to be advice, whether legal, financial or professional. Do not act on this information without first obtaining specific information about your particular situation from either Aurora Finance Group or other superannuation professionals.