SMSF Home Loan Rates in Australia - Finding the right loan to get you the best rates

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SMSF Home Loan Rates in Australia - Finding the
right loan to get you the best rates
When it comes time to refinance your home it is
vital to find the most lucrative SMSF you can to
give you exactly what you need.   In order to
find the right SMSF loan you first need to know
what to look for.   SMSF for residential can
differ from bank to bank and person to
person.   Read on to learn all about the rates
for SMSF home loans, how to find the right loan
for you, and what an SMSF loan can do for you.
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What can an SMSF loan do for me?   For some
people understanding what an SMSF loan can do for
you may be confusing and hard to wrap your head
around.   In short, an SMSF loan is a
Self-Managed Super Fund that works as a private
superannuation.   By default, this is a
Limited-Recourse Borrowing Arrangement
(LRBA).   In other words, it is money that is
used to purchase an investment property which can
be capital gains or your rental payments.   The
property is typically held in a custodian trust
until the loan is repaid similar to a mortgage
when you are buying your private home.   The
money is then funnelled back into the fund to
repay the loan and later be used as part of your
retirement.   It also allows you to have a range
of assets such as shares, term deposits, cash,
unlisted assets, and bonds.   So with that said,
getting an SMSF loan can give you a leg up for
your retirement and set your mind at ease for the
future.   Most Self-Managed Super Funds can be
completely managed by you but it requires a lot
of work and risks.   For this reason, it is
always wise to have a trusted financial advisor
or banker to help you navigate it and set it up.
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What are the current rates and requirements?   In
order to get a residential SMSF loan, you must
prove four things That the property purchased is
intended to only provide for retirement or death
benefits The property cannot be bought from a
member of the SMSF or a related person in the
party The property may not be lived in or rented
by anyone related to the SMSF, including a
member And the property must not be the only
asset (meaning it must include the property,
shares, units, and collectibles or identical
assets)   SMSFs have one of the lowest tax rates
(at 15).   It can be reduced more if you offset
other tax credits with it.   Since it is an LRBA
it generally has higher rates than a regular home
loan.   The home loan rates range from 6.99 to
9.11 depending on the lender and the plan you
acquire.
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Finding the right loan   When looking for SMSF
home loans you should treat it similar to a home
loan.   Compare interest rates, fees, and
loan-to-value ratios.   Typically, SMSF loans
require a 20 minimum deposit or an 80
LVR.   Some lenders may let you have higher
ratios though.   When looking at the fees, keep
in mind that fees typically can include fees to
establish or settle, monthly or yearly fees, and
more.   Always ensure that the SMSF loan is a
SMSF for residential properties, as there is a
difference between residential and commercial
SMSF loans.