24 May 2022
How to Refinance Your Home Loan: Steps to Successfully Refinance
Read more
Not everyone can access their superannuation to buy a home. However, there are three groups of people who can: first-time homebuyers, investors, and those who are over 65 and/or are retired.Â
A few years ago, the Australian Government launched the First Home Super Saver Scheme (FHSS) which allows first-time homebuyers to access their super to purchase a home. However, if you do so, you can only use up to $30,000 of your personal voluntary contributions towards your home loan deposit. You are not allowed to use your employer contributions.Â
Most property investors choose to have an SMSF instead of a traditional super fund. If you use money from your SMSF to purchase an investment property, it must meet strict guidelines set by the government. The biggest guidelines are that the property must be used to provide retirement income for members of the fund and that members of the fund and their relatives cannot live in the home until they are retired.Â
If you do not fit into the first two categories, you cannot use your super to buy a house until you can legally access your super. You cannot access your super until you turn 65 or have retired (as long as you reach preservation age, which is between the ages of 55 and 60, depending on the year you were born).Â
If you fit into one of the three categories above and want to use your super to buy a house, consult with the experts at Mortgage House. We can help you weigh the pros and cons of using super funds towards a home deposit. We can also help you find the perfect loan solution for you at a competitive interest rate.