Union Fidelity - SMSF Loans.
Following changes in the Superannuation Industry Supervision Act (SIS Act) September 2007 it is now possible for Self Managed Superannuation Funds (SMSF) to invest in freehold real estate property under strict specific conditions

Union Fidelity can facilitating lending for Self Managed Superannuation Funds. We defer from using bank sources for funding, and have set up a streamlined method for funding and settling SMSF loans.

There are 3 components to getting these loans settled:
1) Security property - as long as it is in a good location, and borrowings are less than 65% LVR we will consider the proposal
2) Please complete the application form (here) & return with a colour photo of the property
3) Our Lender's Solicitor will organise:
• SMSF Deed, with Rules and any amendment or variations
• Inspection of the Contract of Sale (Provided by the purchaser), evidencing of nomination of the security trustee as purchaser
• If there is a corporate trustee for either the security trust or the SMSF trustee, we’ll need to review the constitution and conduct an ASIC search (however a Corporate Trustee is not necessarily required)
• Existing lease of property (or we can prepare one for any properties if required. Our fee will be based on requirements)
• Interest of Mortgagee noted on insurance, and
We then prepare the Installment Warrant (incorporating the trust), the statement of advice and the risk statement. There is no need for a separate Bare Trust Deed. The purchaser’s conveyancing solicitor will need to assist the clients to complete and execute the mortgage and security documentation in readiness for settlement.

The Total Cost for the Legal Fees to prepare the Installment Warrant (incorporating the trust), the statement of advice and the risk statement is $3,300-00 (incl GST)

There is No Need for Applicants to provide:
1) Corporate Trustee
2) Bare Trust
3) Superannuation Trust
as is the requirements for most traditional SMSF funding

SMSF Loan Rates

Stand alone securities, non recourse to directors, beneficiaries or the trust.

Rates from: 8.65% at 60%LVR + 0.48% Compliance Fee
and
8.92% at 65%LVR + 0.48% Compliance Fee

Maximum LVR: of 65% across All Securities (subject to location)

Maximum Term: 5 years then rollover

Repayments: Interest Only

Fixed Term Options: All loans are fixed for 12 months (minimum)

Other Criteria that MAY apply:
a) property must be greater than 200 sq m
b) minimum SMSF loan size $350,000
c) property in poor condition or long sales period may not be acceptable
d) vacant land and/or property development is not acceptable security
e) one property = one SMSF and one Trust - multiple trusts and SMSF's excluded

Last Updated 20th April, 2010
Subject to normal lending credit criteria and rates are indicative only and do not take into account your clients specific circumstances or financial position