24 Sep 2022

Can I Borrow Money & Put It into My SMSF?

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Yes, you can borrow a limited amount of funds for a short period to put into your SMSF. However, the borrowed funds must equal less than ten per cent of the SMSFs total fund amount. Limited recourse borrowing arrangements and short-term loans for making benefit payments are two options of the very limited circumstances that allow someone to borrow money through a loan and place borrowed funds into an SMSF. 

In addition, an SMSF loan cannot loan money to the fund holder or their family members due to the illegality of SMSF lending. Self-managed super funds allow individuals to take control of their retirement savings by investing in purchases that will generate income in the future. The generated income will then be divided up and a portion will be directed into the SMSF retirement savings. SMSF is a great option for someone looking to be in complete control of where they invest.

SMSF investment loans are considered high-risk, leading Australian banks to no longer offer these loan types. However, there are still a few lending options when it comes to SMSF investment loans. 

  • Mortgage House
  • Liberty Financial
  • Reduce Home Loans
  • Switzer Home Loans
  • La Trobe Financial

If you are interested in learning about investment loans through SMSF, reach out to Mortgage House today! Our professional lending specialists are prepared to walk you through the SMSF investment loan application process using their knowledge and experience working with these loan types.

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