First homebuyer e-course
Sign up for our FREE 8-week course to get on the property ladder.
You can buy an investment property through your self-managed super fund (SMSF). This requires an SMSF home loan. Like other home loans, you can refinance this loan if you want to switch to a better or more suitable product. But refinancing a SMSF home loan is trickier than an ordinary refinance.
There aren't many lenders now who lend to SMSF borrowers. And finding one that will accept refinancers is even harder. But it can be done. Keep in mind that when setting up a SMSF trust or making big changes (like refinancing) you should get professional advice from a tax agent or financial advisor.
The main benefit of refinancing an SMSF home loan is the same as refinancing any other home loan — getting a more affordable deal. If your loan has a high interest rate attached and there are other similar loans available on the market offering lower rates, you could save thousands over the life of the loan by switching. Alternatively, you could switch to a loan that offers different and more flexible features.
SMSF loans work differently to most home loans. When applying for a new one, you will need to review all the eligibility requirements carefully and make sure the loan is suitable for your investment needs.
Some lenders may have additional criteria for refinancers as opposed to new SMSF borrowers. It's important to check this before completing a full application.
You will also need to gather a lot of paperwork to support your application. While specific paperwork differs by lender it generally includes:
Response | Female | Male |
---|---|---|
1 - 2 weeks | 2.37% | 1.73% |
1 - 3 months | 1.69% | 1.35% |
4 - 7 days | 0.51% | 1.35% |
3 - 4 weeks | 1.19% | 0.77% |
3+ months | 0.85% | |
2 or 3 days | 0.51% | 0.77% |
Within 1 day | 0.19% |
Setting up an SMSF home loan is a time-consuming process. SMSF loan applications take significantly longer to be processed than applications for ordinary home loans. There are several requirements that need to be met, such as choosing a custodian for the property. Refinancing may have many advantages for you, but the process takes time to complete.
You need to weigh up whether the time and effort to refinance the loan is worth it.
Please note that very few lenders still offer SMSF home loans. A mortgage broker could help you find suitable products from specialist lenders.
Images: Shutterstock
Unless you have another source of income, it's very difficult to successfully refinance while unemployed.
Refinancing to an interest-only loan can give you lower mortgage repayments and tax benefits for some investors.
Knowing just how much equity you have in your home before you start looking to refinance a home loan is crucial. If you don't have enough equity you might have to pay for LMI again or get stuck with a higher rate.
Our comprehensive guide to refinancing your home loan shows you how to refinance a home loan and start saving today.
Interest rates are low, giving you the chance to save thousands. See how much less you could pay for your home loan by refinancing today.
Learn how to refinance a home loan to fund the purchase of an investment property.
Consolidate debt, pay less interest and reduce your monthly repayments by refinancing into a single home loan. Here's how it works.
Refinancing with no equity is not easy. Sometimes you may not have much equity, but it may still be possible to refinance your home loan.
Keen to switch home loan to a better deal? Refinancing could save you thousands, but make sure you know all the fees and charges before you switch.
Sign up for our FREE 8-week course to get on the property ladder.
Get a home loan with a low deposit.
Pay less for your home loan with a super-low interest rate.
Save on your investment loan with these hot offers.
I have a unit purchased by super without loan,can I refinance this property ?
Hey Carrie,
Thank you for reaching out to us.
While it’s possible to refinance SMSF home loan, there are several factors to consider and this page is a guide on that.
You may also want to consider getting professional advice that fits your financial situation that would aid you in your decision.
Before applying, please ensure that you meet the eligibility criteria and requirements and to read the details, as well as the relevant Product Disclosure Statements/ Terms and Conditions of the option before making a decision and consider whether the product is right for you.
Best,
Maria