SMSF Refinance
We partner with specialist Self Managed Super Fund lenders who really want to refinance your home loan. With market leading interest rates and low fees on offer, you could save thousands of dollars on your investment, which can improve your retirement position.
SMSF refinances should be seriously considered, with low interest rates and low fees on offer from specialist SMSF refinance lenders.
Due to the increased Reserve Bank cash rate, many Self Managed Super Fund loans that were previously established at a reasonable interest rate, are now significantly higher, and subsequently more expensive when compared to the new business market.
Many lenders are reluctant to reduce the interest rate on an existing SMSF lending facility, and there is a stigma that SMSF loans are too difficult and too expensive to refinance elsewhere.
This is turn creates the SMSF mortgage prison, whereby the SMSF investor is trapped in a product that is no longer reaping the desired rewards for the original investment strategy, especially when compared to lower rates obtainable for new business.
With the assistance of our specialist Mortgage Brokers, there could be thousands of dollars which can be saved and reinvested back into superannuation.
Why is an SMSF purchase beneficial?
There are over 2.2 million Australians that own an investment property, and currently over 600,000 Self Managed Super Funds which collectively invest in more than $40 billion in residential property.
This is a favourable option for those who want to retain flexibility when it comes to superannuation for retirement. SMSF finance opens up a wider choice of assets in which to invest, including property and direct shares.
Other advantages may include the capacity to exercise control over the timing of taxable events, and some even find self-managed super funds to be more transparent and tax-efficient than other products.
With fair complex rules and tight governance, people investing in residential or commercial property through a SMSF are recommended to seek qualified and experienced advice.
Are SMSF loans difficult to refinance?
SMSF lending can be thought of as a tedious and costly procedure. There are a number of factors which make the lending application a little different to a standard home loan, it is a little complex, but shouldn’t be difficult if handled by the right mortgage expert.
- There are less lenders in the SMSF space than traditional residential investment lending
- Fees associated in establishing or exiting from a SMSF loan
- Most refinances are limited to just the dollar-for-dollar loan amounts
- Specific documentation is required from an accountant to detail the SMSF
- Security requirements including location and property type
- Liquidity requirements i.e. liquid assets retained in the SMSF
What cost savings can be expected?
It’s all dependent on the loan size, interest rate, establishment & exit fees involved with the scenario, but recently we have had great success in obtaining substantial net benefit, and quickly too.
Recently a Bernie Lewis Home Loans Mortgage Broker refinanced a $360,000 SMSF loan from 10.5% to 7%, which after fees and charges resulted in savings of $10,100 in the first year! These savings are reinvested back into the superfund, which can significantly improve the retirement position of the beneficiary over the coming years at the lower rate.
It must be acknowledged that every scenario is different, and a new interest rate on offer may vary depending on specific circumstances. With a Bernie Lewis Home Loans Mortgage Broker, you’ll partner with a skilled professional who can quickly identify where they can help you save. Call (08) 8300 8300 today, or simply fill out our contact form below
Important Information
Self Managed Super Funds have complicated tax structures to navigate, so you must make sure that you are fully committed to running them in the most effective way possible. Appointing a skilled broker, financial adviser and tax accountant is a smart way to ensure that your fund is being arranged and managed in a way that is efficient, and in line with the law.
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