Additional SMSF Loan Documents Required by Mortgage House: Part One
To protect ourselves when we approve a home loan from a Self-Managed Super Fund, we want to make sure these funds have enough money to service and repay a loan. Therefore, we require additional documentation when applying for a home loan using such a fund.
Basics of an Audit
Your SMSF must undergo an audit by 28 February following the end of the financial year. Not only will your auditor be checking your financials, but they will also be checking your compliance with Australian legislation. If you fail to perform an audit and don’t report to the ATO by the appropriate date, you will be penalised using a non-complying fund. This penalty will result in your employer’s contributions to your fund not qualifying as superannuation guarantee payments. In addition, if you try to apply for a home loan using your SMSF, you may not have enough funds to service a loan.
Why Mortgage House Requires Additional Documentation
Because of this risk of having insufficient funds, Mortgage House requires a copy of the most recent signed accounts (provided and signed by the fund’s Trustee). We also need the audit certificate to be no older than 20 months, which is the maximum amount of time a fund can still be considered compliant.
At Mortgage House, we understand the lending process and how to lend to Self-Managed Super Funds. As a result, we can help you find the right loan for you at competitive rates. We also understand the regulations for SMSFs, meaning we can make sure your fund is compliant with these regulations while finding ways to offer you lower interest rates.