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Please help I am wanting to purchase a property through my smsf but commonwealth bank dont lend to SMSF's do you know which banks do or how do I go about getting help with getting a home loan through my SMSF. Thanks

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Anonymous

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Hi @Lyall 

 

Not sure what you mean by " First Home Buyer "  when you were talking about your SMSF buying a property.

 

A first home buyer is basically an individual who purchases their first residental property to live in, and this does not include a SMSF.  An SMSF is a seperate legal entity to an individual and to put it simply can never be a "first home buyer", even though they may be purchasing their first property. 

 

I do not think you will be able to find any lender that will loan to your SMSF as a "first home buyer", because they do not meet the first home buyer criteria, as they are treated similar to a business by lenders.

As you have seen SMSF loan interest rates are at the higher end of the scale and that is because they are treated much the same as a business by lenders, and the most you can do is to try to negotiate a lower rate with a lender.

 

You may already know that you can not buy a property via a SMSF as a first home buyer because you as member / trustee can not live in that home as it is prohibited under Super legislation.

 

I would recomend that before you do anything else that could potentially put you in breach of super legislation, that you seek some SMSF specific advice by emailing the ATO on superadvice@ato.gov.au or seek assistance from a financail adviser.  

 

ATO Super 13 10 20

3 REPLIES 3

Anonymous

Replies 2

Hi @Lyall 

 

All you need to do is go to a loan comparison website and do a search for SMSF property loans or SMSF home loans.

 

Here is an example - https://www.ratecity.com.au/home-loans/smsf-loans

Newbie

Replies 1

Went to site only gave 4 places I could borrow from and they dont do first time home buyers...

This is so frustrating

Best answer

Anonymous

Replies 0

Hi @Lyall 

 

Not sure what you mean by " First Home Buyer "  when you were talking about your SMSF buying a property.

 

A first home buyer is basically an individual who purchases their first residental property to live in, and this does not include a SMSF.  An SMSF is a seperate legal entity to an individual and to put it simply can never be a "first home buyer", even though they may be purchasing their first property. 

 

I do not think you will be able to find any lender that will loan to your SMSF as a "first home buyer", because they do not meet the first home buyer criteria, as they are treated similar to a business by lenders.

As you have seen SMSF loan interest rates are at the higher end of the scale and that is because they are treated much the same as a business by lenders, and the most you can do is to try to negotiate a lower rate with a lender.

 

You may already know that you can not buy a property via a SMSF as a first home buyer because you as member / trustee can not live in that home as it is prohibited under Super legislation.

 

I would recomend that before you do anything else that could potentially put you in breach of super legislation, that you seek some SMSF specific advice by emailing the ATO on superadvice@ato.gov.au or seek assistance from a financail adviser.  

 

ATO Super 13 10 20

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