Investment Loans


Property, SMSF
and more…

What a lot of people don’t realise is that investment loans are not restricted to investment in property. You are also able to borrow to invest in a direct share or managed fund investment portfolio.

While we are able to borrow to invest in our individual names, we can also borrow in the name of a company, trust and even a Self-Managed Super fund.

The application process is very similar whether the loan is for investment or a standard home loan, the main exception being that income from the prospective investment is included for servicing.

In contrast when borrowing to invest through a Self-managed super fund there are some fundamental differences i.e., interest rates are generally a little higher, loan to valuation ratios (LVR’s) can be lower (especially if for commercial property) and the loan term and method for calculating serviceability are also different.

The most important thing to remember is that there are strict legal requirements in relation to SMSF loans and therefore this type of lending should be done in close consultation with your Accountant and/or Financial Planner and Solicitor. This is definitely not an area to go it alone.


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