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Super Fund Home Loan

Use your Self Managed Super Fund to buy residential investment property
  • A St.George Super Fund home loan is a great option if you already have an SMSF, or if you’re planning to establish an SMSF and are interested in buying a residential property. Borrowed funds may also be used, towards ‘repairs’ and ‘maintenance’ of the property, however ‘improvements’ are not permitted
  • Purchasing an investment property with borrowed funds needs to be consistent with your SMSFs investment strategy
  • Your SMSF Trust Deed needs an express power to borrow
  • A limited recourse loan, so other assets of your SMSF are protected
  • You may be entitled to receive income tax and negative gearing benefits1.

A St.George home loan expert will contact you at your preferred time

Who is eligible?

  • Australian residents planning to establish an SMSF and those who already have an SMSF
  • Australian residents who have an established SMSF investment loan on a residential property in Australian (established after September 2007)
  • Your SMSF may be used to purchase residential investment property in Australia. The purchase must be on an arms-length basis from a person or entity unrelated to the members of your SMSF

Benefits

  • Use rental income to assist in repaying the loan
  • A limited recourse loan where the amount we can recover on default is limited to the secured property itself and all other assets of your SMSF are protected.
  • Negative gearing benefits - offset loan interest and expenses against rental income.1

Competitive interest rates

Choose a 

  • Variable Interest Rate
  • Fixed Interest Rate, or
  • Split Rate mortgage.

Choice of loan term & repayments

 

  • Choice of term up to 30 years for principal and interest repayments or up to 15 years for interest-only repayments
  • Your choice of repayments

 

Great features!

Features include 

Loan Amount

  • Minimum - $100,000 
  • Maximum - $2,000,000

Loan to Value Ratio

  • Up to 70% where SMSF trustee is an individual or a company

Compare

Compare investment cash accounts for your Super Fund: DIY Super Saver and Investment Cash Account

Fees

Establishment fee

$15002

Monthly administration fee

$12

Other fees and charges apply. See a complete list of fees for loan accounts.

Interest rates

For our Super Fund Home Loan interest rates with Interest Only repayments, please see Residential Investment (Interest Only) Home Loan Interest Rates.pdf.

For our Super Fund Home Loan interest rates with Principal and Interest repayments, please see interest rates below.

Term

Annual rate – Principal & Interest

Comparison rate1

Variable Rate sub-accounts

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Fixed Rate sub-accounts

1 year fixed

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2 year fixed

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3 year fixed

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4 year fixed

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5 year fixed

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Repayment options for Fixed Rate Home Loans

Frequency

Choose either:

  • Principal and interest repayments, or for up to 30 years, or
  • Interest only repayments  for up to 15 years

Weekly

Fortnightly

Monthly

Loans with Principal and interest repayments

yes

yes

yes

Loans with Interest-based repayments

no

no

yes

Additional payments

  • On Super Fund Variable Rate loans, make additional payments at any time
  • On Super Fund Fixed Rate loans, make up to $10,000 each year in extra repayments without incurring break costs
  • Calculate what you could save by making extra payments.

Automatic repayments

Set up convenient automatic repayments from your nominated account

Investing in property with a self managed super fund (SMSF)

Under the Superannuation Industry (Supervision) Act 1993(Cth) (SIS), a trustee of a SMSF is allowed to borrow to purchase residential investment property. It’s important to remember that investing in property with your SMSF is a long-term investment strategy, and it’s best that you get independent financial advice. If you have questions about Super Fund Home Loans, a St.George home loan expert can help at any St.George branch.

Who is eligible?

  • Australian residents planning to establish an SMSF and those who already have an SMSF
  • Australian residents who have an established SMSF investment loan on a residential property in Australian (established after September 2007)
  • Your SMSF may be used to purchase residential investment property in Australia. The purchase must be on an arms-length basis from a person or entity unrelated to the members of your SMSF

How it works

  1. You have set up a SMSF or you are planning to do so. If you haven’t yet set up a SMSF, your accountant or financial advisor will be able to assist you. For basic information, visit the Australian Taxation Office Self Managed Super Fund webpage.
  2. Ask your accountant or financial advisor about the benefits of borrowing to invest in residential investment property with your SMSF. We can help you with establishing a Super Fund Home Loan at a St.George branch.
  3. How the SMSF purchases a property:

Step 1: The trustee of your SMSF needs to confirm that purchasing an investment property with borrowed fund is consistent with the SMSF’s investment strategy and the SMSF Trust Deed expresses that borrowing is allowed

Step 2: The trustee of your SMSF selects a residential investment property to purchase.

Step 3: The trustee of your SMSF appoints a Custodian to purchase the residential investment property on its behalf.

Step 4: The trustee of your SMSF applies for a Super Fund Home Loan and provides documentation to St.George.

Step 5: The trustee of the SMSF seeks financial advice from an accredited SMSF financial planner and has an SOA completed which confirms that purchasing an investment property with borrowed fund is consistent with the SMSF’s investment strategy meets the risk profile of the SMSF members – a Financial Advice Certificate will need to be provided as part of the credit criteria

Step 6: The Custodian pays the deposit and exchanges contracts on the purchase of the residential investment property.

Step 7: If St.George approves the loan, your Custodian mortgages the property to St.George to complete the purchase.

Step 8: The trustee of your SMSF pays the legal costs and stamp duty on the purchase.

Step 9: Once the loan is advanced, the trustee of your SMSF collects rent, pays the usual outgoings on the property and makes the loan repayments. It manages the property in the same way as any other real estate investment.

Step 10: The property is held in trust and once the loan is repaid, the legal title may be transferred from the Custodian to the SMSF or the property may be sold.

Key benefits

  • Property held in a SMSF is a limited recourse loan, where the amount that we may recover on default is limited to the secured property itself and all other assets of your SMSF are protected
  • Use rental income to assist in repaying the loan
  • You may be entitled to gearing benefits – offset loan interest and expenses against rental income and income tax benefits – concessional tax rates on income after expenses.1

For more information, speak to your financial advisor or call a St.George home loan expert on 13 33 30. You can also talk to a St.George home loan expert at any branch.

Enquire online

Enquire now and a St.George home loan expert will call at your preferred time

Call us

13 33 30. To talk with a St.George home loan expert, say “New Mortgage” when prompted.

Visit a Branch

Find your nearest branch

What you'll need

There are specific documentation requirements for a Super Fund Home Loan, including, but not limited to:

  • Complete Super Fund Home Loan Application Form
  • Self Managed Fund Documents
    • Certified copy of Trust Deed
    • Bank statements, showing evidence of member contributions
    • If Company Trustee
      • Certificate of incorporation
      • Accountant’s letter confirming Company Trustee does not trade
  • Property Custodian
    • Certified copy of Trust Deed
    • Certificate of Incorporation
  • Evidence of ability to service the loan
    If the loan requires additional contributions to service the debt, then St George will need to confirm the customers financial position, via evidence of income, assets and expenses
  • Financial Advice Letter
  • Last 2 years
    • If self employed – business tax returns and financial statements
    • Individual tax returns and Notice of Assessments for each member
    • If existing fund – SMSF Tax Returns and financial statements
      • If not St George Customer – working account and loan statements
  • Evidence of rental income
    Copy of existing lease / managing agent statement / real estate declaration.
  • A copy of the relevant pages of the Contract for Sale

Please note: Super Fund Home Loans must be referred to a St.George Panel solicitor for review of the SMSF Trust Deed and the Custodian Trust Deed prior to settlement.

Tips

How to apply

Important information

Conditions, fees and credit criteria apply.

View the terms and conditions:

Please read these documents and keep a copy. You can request a paper copy at a branch.

The information on our website is prepared without knowing your personal financial circumstances. Before you act on this, please consider if it’s right for you. If you need help, call 13 33 30.

1. The taxation position described is a general statement and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and their interpretation. Your individual situation may differ and you should seek independent professional tax advice on any taxation matters.

2. Other upfront fees and costs may apply.

3. The comparison rate is based on a loan of $150,000 over a 25 year term. Where a fixed rate term applies, after the fixed rate period expires the interest rate will revert to the relevant Standard Variable Rate. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

4. Before acquiring a deposit product, you should read the terms and conditions available on request at any branch or phoning 13 33 30 to ensure that the product is appropriate for you. Deposit products are issued by St.George Bank, a division of Westpac Banking Corporation AFSL 233714.