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Borrower Eligibility

Responsible Lending. Because Retirement Matters.

Ready to buy an investment property for your SMSF? We've designed an SMSF investment property loan just for you. It's more accessible, transparent, tailored, and on fairer terms than SMSF loans offered by the banks and other traditional lenders.

We believe you have the right to a great retirement, so we've removed all the obstacles to help you realise the opportunity

We're not a bank, just better. Our marketplace lending platform provides you with the opportunity to access funding for a new SMSF investment property purchase or LRBA refinance, directly from multiple investors looking to fund these types of loans on a whole or fractional (part) loan basis.

What's the eligibility criteria for a LendEx SuperMaximiser Loan?

To support SMSF trustees, like you, we have specifically designed our LendEx investment property loan to do away with the unfair contract terms and director guarantee requirements usually imposed by traditional lenders. What can we say, we like straightforward loan terms.

Your fund must be a regulated and complying Self-Managed Superannuation Fund (SMSF) registered with the Australian Taxation Office (ATO).

Your fund must have a 'special purpose company' as trustee, as opposed to individual trustees.

All members of your fund must be in the accumulation and not pension phase when the loan commences.

The registered user of the LendEx Lending Platform and primary contact for your fund must be one of the directors/members of the fund.

Your fund must have at least $200,000 in net assets prior to you purchasing the proposed commercial or residential investment property (limited exceptions may be assessed on a case-by-case basis).

Your fund must have at least $100,000 in net assets prior to you refinancing an existing LRBA loan (limited exceptions may be assessed on a case-by-case basis).

Your fund intends borrowing a minimum of $200,000 to purchase real property on commercial terms for investment purposes only. Or, to refinance an existing LRBA loan.

You require a maximum loan term of 15 years (any existing LRBA loan being refinanced will be reduced by the duration of that loan).

The maximum Loan to Valuation Ratio (LVR) of the LRBA must not exceed 80% (70% for an existing LRBA loan being refinanced).

Your fund must be able to substantiate sufficient current and ongoing annual income capacity to cover at least 125% of the estimated annual principal and interest loan repayments required.

What types of investment property are considered acceptable security for a LendEx SuperMaximiser Loan?

LendEx SMSF investment property loans are only available to SMSFs with a corporate trustee for the purchase or refinance of income producing commercial or residential investment property. Unfortunately we do not offer loans for property development purposes or private owner-occupier or investment purposes. For more detailed information on acceptable and unacceptable security, we recommend that you speak to one of our Client Success Managers who will be more than happy to discuss your particular lending needs.

Frequently asked questions?

What are the risks of borrowing to invest through my SMSF?

The decision to purchase an investment property using borrowed funds through a SMSF requires careful consideration. The rules associated with a limited recourse borrowing arrangement (LRBA) are complex and come with certain risks and legal obligations that can carry significant penalties if breached. It is essential that you consider these risks carefully and that you seek specialist advice before establishing a LRBA and purchasing an investment property for your SMSF.

We strongly recommend that you meet with an accountant or financial planner who is a Member of the SMSF Association and accredited as an SMSF Specialist Adviser™ (SSA) before establishing an SMSF for the purposes of purchasing an investment property through superannuation – especially if advised to do so by a real estate agent, mortgage broker, property developer, property marketer, or anyone not licensed by the Australian Securities & Investments Commission (ASIC) to provide financial product advice.

How much can my SMSF borrow?
LendEx currently facilitates loans of between $200,000 and $3,000,000.

The actual amount your SMSF can borrow will be determined during our initial eligibility assessment and subsequent more comprehensive credit assessment of your SMSF’s:
  • legal and compliance structure;
  • capacity to repay the loan;
  • collateral (the property security) being pledged;
  • the amount and quality of the capital you have available to offer to support the loan;
  • character and that of its associates.
How do you determine the security value for the loan?
The loan amount cannot exceed a maximum loan-to-valuation (LVR) ratio of 80%. With the ‘valuation’ (security value) for the loan determined using the lesser of:
  • the purchase price of the property as contained in the ‘Contract of Sale’; or
  • the appraised value of the property as provided by one of LendEx’s independent property valuation panel firms.
How long does the application process take?

LendEx has developed proprietary software systems and applications that are integrated into our website and platform to make the loan origination process as frictionless as possible. The end-to-end online user registration, eligibility questionnaire and application process takes around 15 – 20 minutes to complete. Once the online form has been submitted we’ll provide an instant decision as to whether or not your loan request has been “pre-approved”, so that you know exactly where you stand.

You’ll then have access to your personalised Borrower Dashboard, where we’ll prompt you to provide us with additional information required for identity verification and credit assessment purposes using a really smart dashboard wizard.

We’re usually able to provide you with a “conditional pre-approval” in the form of a “Letter of Offer” within 24 – 48 hours of receiving your Application (subject to you providing us with any additional information subsequently requested for further identity verification and credit assessment authentication purposes).

Once you’ve paid our Invoice for the “independent valuation fee”, we’ll instruct one of our independent property valuation firms to undertake an appraisal of the property the subject of the loan. As soon as we receive the ‘valuation report’ back from the valuer (usually within 5 – 10 days), we’ll be in a position to provide you with a loan approval (Loan Agreement), confirming the loan amount and the interest rate, subject of course to your acceptance of the terms and conditions contained therein.

On average, subject to you providing us with all information requested by us in a timely manner, our credit assessment team should be able to finalise the application process to completion within 7 – 21 days of having received your application, entirely online and without the need for you to ever step foot in a branch or office.

Can the loan be repaid early?

Yes. You can repay the loan early in full with no early repayment fees or penalties payable. Please note that partial repayments are currently not permitted.

If you are an existing Borrower and are interested in repaying your loan early, we recommend that you speak to one of our Client Success Managers on 1300 536 339 to assist you further.

Can you refer me to a SMSF specialist?

We would be delighted to refer you to an independent accountant or financial planner who is accredited by LendEx and who holds an Australian Financial Services Licence (AFSL) issued by the Australian Securities & Investments Commission (ASIC) to provide financial product advice.

We strongly recommend that you meet with an accountant or financial planner who is a Member of the SMSF Association and accredited as an SMSF Specialist Adviser™ (SSA).

Simply visit the Contact Us page and click on the “Send Us a Message” button to send us a message requesting a referral.

Please note that LendEx neither receives or pays incentives in any form for referrals made to, or received by us, from third parties.

What are the benefits of using a LendEx SuperMaximiser Loan to purchase an investment property for your SMSF?

Superannuation legislation allows for superannuation funds, including SMSFs, to borrow money for investment purposes, provided certain conditions are met.

A LendEx SuperMaximiser Loan, when used to purchase real property utilising an SMSF limited recourse borrowing arrangement (LRBA), simply combines the power of borrowing money to invest with the advantages of investing in a concessionally taxed environment (i.e. at a lower rate of tax on income and capital gains when compared to your marginal rate of tax).

There are a number of other benefits, so why wouldn't you consider purchasing an investment property for your SMSF using LendEx SuperMaximiser Loan?

Purchase Your Business Premises

Utilising a SMSF's capacity to borrow funds to purchase 'business real property' through a SMSF is becoming an increasingly popular investment strategy deployed by SMSF specialists and their SMSF clients. Not only can a SMSF purchase the business premises you operate your business from, but your business can lease the business premises from the SMSF.

The SMSF then leases the business premises to the business on arms length (commercial) rates and terms – with the SMSF benefiting from paying a maximum of 15% tax on the rental income, while your business benefits from the tax deductibility of the rental expense.

Diversification Through Real Estate

There is no doubt that portfolio diversification is an important element of any prudent SMSF investment strategy. Not only does borrowing funds through a SMSF enable you to purchase a high-value asset sooner, to derive greater long term investment returns leveraging the SMSF's existing available financial resources, but it also introduces an asset class into the fund's investment portfolio that has a low correlation with other asset classes.

This means that by adding real estate to an existing portfolio of shares and bonds, SMSF investors can achieve greater asset, income and volatility diversification benefits. In other words, similar investment portfolio returns can be generated with a lower risk, or higher returns can be generated with the same risk – over the longer term.

Boost Your Super Benefits

Borrowing funds to purchase an investment property through a SMSF has the potential to significantly enhance investment performance and increase the size of your fund's member account balances over the longer term as more money is put to work in your fund sooner.

Not only will the SMSF member account balances benefit from the concessionally taxed rental income paid into the SMSF being used to repay the loan (debt), but they will also benefit from the potential increase in capital value of the investment property over time – with no capital gains tax payable on the disposal of the investment property if the SMSF's members have converted their superannuation from the accumulation to pension phase.

Fair Terms & Limited Recourse

Our team of superannuation, investment and credit experts have spent the past few years developing a SMSF investment property loan purpose built for SMSFs. The loan we offer is a limited recourse loan, this means that in the event an SMSF defaults, our rights are limited to the investment property held in the 'bare trust'. This means there is no recourse to the other assets in the SMSF.

Because we're committed to facilitating loans across our platform on fairer terms than those offered by the banks, the LendEx SuperMaximiser Loan comes with competitive interest rates, higher loan to valuation ratios (LVRs), no director guarantees, no monthly account keeping fees, no early repayment penalties, no hidden fees and definitely no surprises.

The decision to purchase an investment property using borrowed funds through a SMSF requires careful consideration. The rules associated with a limited recourse borrowing arrangement (LRBA) are complex and come with certain risks and legal obligations that can carry significant penalties if breached. It is essential that you consider these risks carefully and that you seek specialist advice before establishing a LRBA and purchasing an investment property for your SMSF.

We strongly recommend that you meet with an accountant or financial planner who is a Member of the SMSF Association and accredited as an SMSF Specialist Adviser™ (SSA) before establishing an SMSF for the purposes of purchasing an investment property through superannuation – especially if advised to do so by a real estate agent, mortgage broker, property developer, property marketer, or anyone not licensed by ASIC to provide financial product advice.

What are you waiting for? Get started now!

Why not apply for a SMSF SuperMaximiser Loan right now, and experience the fastest, simplest, most transparent way to purchase an investment property loan for your fund?

Need Help?

If at any time you'd like some help – please feel free to chat with one of Client Success Managers using the online chat function to the right of your screen.
Or, if you'd prefer to speak to a real person here in Australia, simply give us a call on 1800 536 339.

IMPORTANT NOTICES

By accessing or using this website you agree to be bound by our Terms of Use.

LendEx Group Limited ACN 166 950 376, LendEx RE Limited ACN 168 531 851 and LendEx Services Pty Ltd ACN 168 531 888 (collectively LendEx Group, LendEx, we, us, our) provide the LendEx Lending Platform (Platform) comprised of software systems and applications via lendex.com.au and its sub-domains, which facilitates marketplace lending transactions between Members that invest or apply to invest through the LendEx Lending Fund using the Platform (Investors) and Members that borrow or apply to borrow using the Platform (Borrowers). LendEx RE Limited ACN 168 531 851 holds Australian Financial Services Licence (AFSL) Number: 477 371 and is the Trustee for the LendEx Lending Fund (Fund). LendEx Services Pty Ltd ACN 168 531 888 is an authorised representative of LendEx RE Limited and is the manager of the Fund and operator of the Platform. Perpetual Corporate Trust Limited ABN 99 000 341 533 acts as custodian of the Fund and P.T. Limited ABN 67 004 454 666 acts as security trustee for the LendEx Origination Trust.

Investment returns (interest rates) in this website are displayed on an annualised basis and are gross of investment management fees. Comparison rates in this website are true only for the examples given and are based on a loan of $400,000 over a 15-year term. Different amounts and terms will result in different comparison rates. Costs such as late payment fees, ad hoc property valuation fees, and cost savings such as fee waivers or rebates, are not included in the comparison rate but may influence the cost of the loan. Where a fixed rate term applies, after the fixed rate period expires the interest rate will revert to the applicable Variable Rate. All loan interest rates are displayed on an annualised basis. Terms, conditions, fees, charges and lending criteria apply.

All information contained in this website is for general advice purposes only and does not take into account your objectives, financial situation or needs. Before acting on any general advice contained in this website, LendEx recommends you consider whether it is appropriate for your particular circumstances. Investors should read and understand our disclosure documents, including the relevant Offer Document (Information Memorandum (IM)) before considering making any investment decisions regarding any LendEx financial products. LendEx does not guarantee nor warrant the performance of any investments in asset backed securities (Notes), the maintenance or repayment of capital, or any particular rate of return. Investors should read and understand our disclosure documents before making any decision to invest in asset backed securities (Notes) through the Fund. Borrowers should read and understand our eligibility criteria, loan product information and how personal and credit-related information will be collected, used and disclosed by us in accordance with our Privacy Policy & Credit Reporting Policy, before applying for a loan.