SMSF Unit Trust Loan

Unit trust loan with a SMSF as a unit holder

A unit trust is for borrowers who wish to purchase units in a unit trust instead of directly through the SMSF. A unit trust loan allows the SMSF to be the unit holder.

Directors of the unit trust and SMSF are required to be the same beneficiaries.

What documents are required?

You will be required to provide the following documents upon application:

  • Last 2 years Notice of assessment and Tax Returns
  • Superfund statement
  • Evidence of super contributions – Tax returns or payslips
  • Accountants letter confirming company trustee
  • SMSF Annual returns
  • Certified copies of the trust deed for SMSF, Unit Trust and custodian trust deed

We may require additional documents which are not listed above, however we will advise you once we assess your scenario.

In-house asset rule

Another factor to consider when looking to purchase an SMSF, is that the property which you're looking to purchase cannot breach what is called the in-house assets rule. In-house assets (IHA) are investments or loans to the fund members and known parties e.g. relatives, business partners, companies and related units trusts to the SMSF. You also need to keep in mind that the IHA does not exceed more than 5% of the fund’s total assets.

In other terms you cannot under any circumstance purchase any vacation home or residential property and lease it to yourselves or a family member even if rent is paid.

Not all lenders offer SMSF loans, however our Mortgage Providers brokers are trained specialists in this area and we know which lenders will be able to assist with your situation. Speak to us to us today on 1300 6556 600 or send us an online enquiry and we will contact you!