03 Nov 2021
Can I Rent My SMSF Property to Family?
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Borrowing from your super to purchase assets, such as an investment property or shares, is a common way most Australians choose to increase their retirement savings. However, the amount you can borrow depends on how much you have in your super. The lender you apply with will calculate your fund’s borrowing power, which determines your maximum loan size.Â
When assessing your fund’s borrowing power, your lender will look at:
Your borrowing power is affected by how much of the income your lender accepts. Some lenders only accept 80% of the income in your super. Others may accept all of it.Â
If you are accessing your super early due to any financial hardships, you can borrow between $1,000 and $10,000 from your super every 12 months. However, if you have reached your preservation age, plus 39 weeks, (which is determined by the year you were born), there is no limit to how much you can borrow from your super.Â
If you are interested in using money in your super to purchase assets, the experts at Mortgage House can help. We will discuss with you your borrowing options, as well as helping you weigh the pros and cons of using your super to receive a loan.