Looking to expand your portfolio? Want more flexibility and value from your SMSF property investments? Talk to Homestar Finance, the SMSF loan specialists.
We help property investors get a better deal – with market leading rates, personalised service and loans packed with flexible features.
We offer competitive rates to suit all refinancing and purchasing needs.
No application fee, no monthly fee, no offset account fee, and no annual fee (refinance special).
Spend less time on admin and paperwork and maximise the fund’s borrowing potential.
All wrapped up in just a few days with the help of your dedicated loan specialist.
Pay fortnightly or weekly over monthly and save.
Free offset account.
We don’t charge an application fee, a monthly fee or an offset fee, and we’re currently waiving the annual fee if you refinance your SMSF loan with Homestar Finance.
Any fees you do pay are transparent and simple, so you always know where you stand.
|
SMSF Star Blue |
|
|---|---|
| Annual fee |
$3953 OFFER: $0 for SMSF refinance loans5 |
| Lenders legals (settlement related fee) |
$5953 |
| Valuation (residential) Over $1m will be at cost |
$244.203 |
| Discharge fee |
$2,200 ($0 if loan goes full term)4 |
A self-managed super fund (SMSF) loan, also known as a Limited Recourse Borrowing Arrangement (LRBA), is a loan designed for people who want to buy a residential or commercial investment property through their self-managed super fund. The loan is made to a company or a trust with a corporate trustee.
An SMSF loan allows the trustees of the SMSF to borrow money to buy an investment property as part of the SMSF portfolio. The property can be either residential or commercial.
Once purchased, the property is held in a separate custodian trust (bare trust) and any income generated is re-invested into the fund to repay the SMSF loan. When the loan is repaid, the SMSF acquires the deed title. The diagram below shows how this works.
Most lenders apply a ‘liquidity test’ on SMSF loans. This test requires that a minimum of between 10 and 20 per cent liquid assets (cash and shares) or a fixed cash amount must remain in the SMSF after the investment property is purchased. This can often restrict how much an SMSF can borrow.
At Homestar Finance, we do NOT apply a liquidity test. Instead, you can borrow the total amount you need without any liquidity restrictions – saving you time and extra paperwork.
IMPORTANT: We recommend you obtain independent legal and financial advice on compliance with the Superannuation Industry (Supervision) Act 1993 and the considerations regarding property investment through an SMSF.
To apply, you need to have an existing self-managed super fund set up as a corporate trustee or be in the process of creating one.
The ATO has a set of regulations that govern how you can borrow under a Limited Recourse Borrowing Arrangement. You must establish a bare trust to hold the property title for an SMSF loan.
IMPORTANT: We recommend you obtain independent legal and financial advice on compliance with the Superannuation Industry (Supervision) Act 1993 and the considerations regarding property investment through an SMSF.
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Great customer service and competitive rates
Amazing service from the retention team, they were very efficient, fair and straight to the point. From the moment I first contacted them, to the last step of getting my rate updates in the system, everything was done and dusted within 10 days. I had a lot of queries, so I’m sure they would have done it in less than a week! Read more
Happy services
Great Experience, thanks Homestar! Edy and the rest of the homestar team made it very easy. He kept us informed during the whole process and was very professional and answered all our questions along the way. We have used them for 6 years with our previous property so they are consistent. I would highly recommend them. Read more
Amazing Customer Service & Very Helpful
Andrew and the rest of the team are really amazing and helpful all through out our loan process. Thank you Homestar for fast accommodation and absolutely wonderful customer service! Read more
John and Michel were fantastic- the entire process was smooth and both were very responsive
Beats any bank hands down. Their Service was top notch and thorough and helped me navigate my way around what could have been a challenging process give mine was spread between a Top Up and an investment loan. Read more
Great customer service
I’ve been a Homestar customer for a few years now, and recently requested a switch to a more competitive product. I’ve been impressed by the quality of the customer service (especially Regina from the Retentions team), and have had friendly & professional responses throughout the process. Importantly, the turnaround time has been super quick, with minimal time spent on hold / waiting for email responses. Read more
SMSF is a common abbreviation for Self–managed Superannuation Fund or Self-managed Super Fund.
As the name suggests, a Self-managed superannuation fund is a super fund, but unlike a traditional super fund this type of fund puts you in control of your superannuation. An SMSF allows up to 6 members who have control over how the funds are invested.
Your SMSF can invest in new or established residential or commercial real estate. There are some restrictions, for instance with Homestar Finance the property must be in a completed state, meaning no real estate under construction can be purchased with an SMSF.
Once your SMSF is set up, the loan part is relatively easy. In fact, the process does not differ greatly from a standard home loan. After your SMSF Loan is approved and settled, you will have simple online access to check balances, transfer extra funds into and out of your offset account, and more. At Homestar Finance, we also have a dedicated customer service team ready to help you out.
Everyone’s circumstances are different, so it is best to consult with one of our home loan specialists to help answer this question. Homestar Finance offers loans up to $2,500,000 with an 80% LVR (Loan–to-Valuation ratio is the loan amount divided by the value of the property). Speak to your loan specialist who will be happy to explain the options with interest rates and LVRs.
No. Homestar Finance’s Star Blue SMSF Loan do not cover properties under construction or vacant land. And because the SMSF loan must be used for an established dwelling that is producing income, you cannot live in the property.
Yes. We just need a letter from your accountant that confirms regular contributions, advises us about the ongoing costs of the SMSF, and confirms that contributions from your regular super fund have transitioned across to your SMSF.
If you are buying property with your SMSF fund, you must ensure that the Bare Trust is noted as the purchaser.
Yes. Ask your loan specialist for more information and to guide you on this.
A Limited Recourse Borrowing Arrangement (LRBA) involves a self-managed super fund (SMSF) trustee choosing to take out a loan from a third-party lender. The SMSF trustee can then use those funds to purchase a single (or collection of identical) assets to be held in a separate trust.
An SMSF must have no more than 6 members. If you are a member, you’re also a trustee, meaning that you are in control of how funds are invested. If there is more than one trustee in an SMSF, you should be acting in everyone’s best interest when managing funds and making investment choices.
If you took out an SMSF loan to purchase the SMSF property, you are not permitted to use additional loan funding to make improvements. Renovating an SMSF property is a complex issue, and it is always recommended that you seek professional advice before making any significant changes to your SMSF investment.
Find out more in our blog article Renovating SMSF Property: Can You Make Big Improvements.
Homestar Finance will only lend to an SMSF with a corporate trustee. For SMSF loan borrowing purposes, the trustee of the SMSF cannot be the same as the trustee of the security/property Bare Trust.
Find out more in our blog article Understanding How Members and Trustees Work in Self Managed Super Funds (SMSF).
At Homestar Finance, we don’t apply a liquidity test. So, you can borrow the total amount needed without liquidity restrictions.
Find out more in our blog article How Much Super Do I Need to Buy an Investment Property?
SMSF property cannot be used for personal use or rented out to anyone related to you. There are various other regulations when it comes to owning residential or commercial property through your SMSF. Any violations could lead to significant financial, civil or criminal penalties.
1 Rates shown apply to new eligible SMSF home loans only, up to 70% LVR, loan amount minimum of $150,000 up to max of $2,000,000. Rates are subject to change without notice. Existing borrowers may have different interest rates which are dependent on the rate offered to the borrower at the date when a home loan settled and any reductions or increases the lender decided to make on the existing loan over time. Accordingly, there is not one standard variable rate that applies to all Homestar home loans and existing customers can confirm their current rate(s) by logging in to internet banking or by contacting customer service. Terms, conditions, and eligibility criteria apply.
2 Comparison rates are based on a $150,000 loan amount over 25 years. 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.
3Third party cost(s) incurred by service provider(s) are payable and may vary or increase depending on the service provider, nature of the service and request. Any additional cost(s) are passed on directly to the applicants(s). If there is a variation or an increase, a separate quote will be provided.
4Discharge fee is waived if loan reaches full term as per the loan agreement.
5This is a limited time special for SMSF loans that are refinancing to Homestar Finance, up to 70% LVR, and are not already part of the Origin Mortgage Management Services
Other fees and charges may apply.
DISCLAIMER: Terms, conditions and eligibility criteria apply to all our loan products and features. Fees, charges and disbursements are payable. Final approval is subject to credit assessment. Information valid as at 21st April 2024 which is subject to change without notice. Please consider if the product is appropriate for your individual circumstances. If you need assistance or have any questions about a product or feature and its suitability, please contact our Loan Specialists.
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