Get the Details: If you have not already set up your Self-Managed Super Fund (SMSF) already, we recommend you check with a broker to confirm that you are able to borrow and obtain a loan with your SMSF and how much you can purchase for before incurring the cost of setting up an SMSF. 

Set up your SMSF.  You can do this with most accountants we can refer you one if you are unsure of who to use. You can also set up your SMSF yourself online with legals firms, however this may be confusing for some.  WhiteStar Finance and Associated companies do not offer legal or financial advice as to the suitability of an SMSF except in the capacity of Credit Assistance and providing loan options. 

Loan Set Up: The Loan is set up with the Borrower being your SMSF Trustee on behalf of your Self Managed Super Fund 

The Property is owned and mortgaged by a Property Trustee (Bare Trustee) on behalf of the Property Trust (Bare Trust).  An agreement is in place for limited recourse borrowing between your Property Trust and your SMSF. 

Loan Application: Application to be completed, your broker will guide you through the process. 

Supporting Documents:  Supporting documents needed will be a minimum of 

• Payslips or tax returns to show contributions to be made by members 
• Current Super Statements for 6-12 months depending on lender and employment type. 
• Evidence of Rental – This can be by Valuation. 
• SMSF – Trust Deed and any Deeds of Variation 
• Certified Copy of the Bare Trust Deed (Property Trust) 
• Confirmation the SMSF is compliant (new SMSF this is not required) 

• It is recommended that you have received advice when making the decision to set up an SMSF and also with the decision of purchasing a property 
• Most lenders will require confirmation you have received legal advice in regard to the loan. This often a document provided with your loan documents that will need to be taken to a legal practitioner to confirm the legal obligations have been fully explained to you. 
• An accountant can provide you with tax advice in regard to the benefits and risks from a Tax Point of View. 
• It is important to know that with residential property purchased in your SMSF you must ensure that it is fully at arms length and it must pass the sole -purpose test.  You cannot live or have any personal benefit or related parties cannot have any benefit from the Property or the Self Managed Super Fund until after all members have retired.

• It is important to know that with residential property purchased in your SMSF you must ensure that it is fully at arms length and it must pass the sole -purpose test.  You cannot live or have any personal benefit or related parties cannot have any benefit from the Property or the Self Managed Super Fund until after all members have retired.  
•  Commercial property owned in a Self Managed Super Fund can be Owner Occupied.  Example a Plumber has a business and decides to purchase the commercial factory in the Self managed Super Fund.  The Business can rent the property from the Super Fund. 

Borrowing in your Self managed Super Fund will need to meet a set of criteria with all lenders who lend to Self managed Super Funds. 

• Liquidity Rule = this means there must be enough funds in the superfund that is liquid to assist with repayments and other expenses.  
• Servicing the Loan = This is made up from the Rental for the Property, Super Contributions from the members and in some case small portion of the remaining fund balance earnings can be used as well. 
• Security Type and Location = Different lenders accept different locations and security types.  The amount the lender can go to can vary between 60-80% of the security value depending on location and security type.  Some locations are unacceptable for SMSF loans.  Regional locations need to be checked case by case. 
• Deposit amount = The amount to be contributed to the property purchase needs to meet the LVR rules and the Liquidity Rule as well as servicing.