- SMSF loan interest rates are typically higher compared to traditional home loans due to the increased risk associated with limited recourse borrowing.
- The higher risk for lenders stems from the non-liquidity of property assets within SMSFs. Properties are harder to sell and access for their total equity or value compared to shares, making them riskier assets. Consequently, lenders perceive property within SMSFs as restricting cash access, potentially endangering the fund’s adherence to the sole purpose test.
For more information call us on 0410 598 828 or email us on czang@bestprofessionalfinance.com.au for free mortgage health checkup or for any loan enquiries.