You can borrow up to 70 per cent of the value of a property and there is a minimum and maximum loan amount that can be borrowed as well as a minimum and maximum loan term.
While you can choose to have a fixed or variable rate, or to split your loan, the rates offered by the SuperEdge SMSF Loan are all very high compared with traditional home loans. However, by SMSF home loan standards this rate is average.
There are flexible options in the way you can repay this home loan. Principal and interest payments can be made weekly, fortnightly or monthly and interest-only repayments can be made monthly, though there is a maximum term interest-only repayments can be made.
A 100 per cent offset account is also available which could help you pay off your loan faster by using a transaction account that offsets your interest. Although, this option is only available to variable rate customers.
Variable rate customers can make an unlimited number of early repayments and fixed rate customers can make a maximum number of additional repayments annually. However, there is no redraw permitted with this loan.
This loan is good for investors who want to access their SMSF in order to finance an investment property purchase and who would like flexibility in how and when they repay their loan. It would not be suitable for owner-occupier borrowers wanting to live in the purchase.
This loan also has flexible repayment options with principal and interest or interest-only repayments as well has 100 per cent offset account availability for variable rate customers.
However, the high establishment fee and high interest rates might offset the offered benefits so it’s best to research your needs against the pros and cons of this loan to see if it’s a suitable option for you.