Can I Use Super as Security for a Loan?
Individuals researching available loan options may wonder if they are allowed to use their super as security for a loan.
Yes, you can use a portion of your superannuation as security for a loan. However, it may be difficult to find a lender who accepts super as security for a loan. Additionally, there must be some of the superannuation left over to act as a buffer, which can affect the loan size and your overall borrowing power.
It can be exceedingly difficult to gain approval for using super as security for a loan. There are countless factors that can affect approval, but most importantly, individuals are not typically allowed to access their superannuation before reaching either retirement or reservation age. In addition, not many lenders will be willing to accept super as loan security because of the high-risk nature.
Lenders who do allow super to be used as security for a loan generally only allow borrowers to receive a loan of 70% of the property value, and the loan amount can not be increased through lenders’ mortgage insurance.
If you would like to learn more about using your superannuation as security for a loan or various other super loans, reach out to the Mortgage House professional lending specialists. We are prepared to offer specialized assistance and advice throughout your loan process to successfully achieve your financial goals. Call today to learn more!