Judge Lending · Investment and SMSF
Investment and SMSF loans, structured for tax
An investment loan set up the wrong way can cost you deductions for as long as you own the property. We arrange investment and SMSF loans with Judge Accountants involved from the start, so the entity, the structure and the paperwork are right before the application goes in.
Investment property loans
Which entity borrows
In your name, jointly, through a trust or a company. It affects who claims the deductions, who pays tax on the rent and the gain, and asset protection. Your accountant helps decide before you sign the contract.
Loan structure
Separate loans for separate purposes, interest-only or principal and interest, and fixed or variable splits, set up so the deductible and non-deductible debt never mix.
Using equity
Borrowing against your home for an investment deposit can work well, as long as the new borrowing is a separate loan used only for the investment.
Lenders that suit investors
Lenders assess rental income and existing investment debt differently, which can change how much you can borrow. We compare them for you.
SMSF loans
Limited recourse borrowing
The fund borrows to buy a single asset held in a bare trust. We arrange the loan; Judge Accountants sets up the bare trust and keeps the fund compliant.
Business premises
One of the most common reasons business owners use an SMSF: the fund owns the premises and your business pays it rent at market rates.
Rules to respect
Borrowed money can be used for repairs but not to improve the property, and the property must meet the fund’s investment strategy and the sole purpose test.
Thinking about an SMSF but don’t have one yet? Setup is currently $0, and administration is $295 + GST a month. SMSF accounting →
Important information
Judge Lending brokers are credit representatives of Mortgageport Management Pty Ltd, Australian Credit Licence 386360, through MAB Broker Services Pty Ltd ACN 616 236 527 trading as Mortgage Advice Bureau. [check: confirm licensee and ACL are current, and add Judge Lending’s entity name and each broker’s credit representative number]
The information on this page is general and doesn’t take into account your objectives, financial situation or needs. All loans are subject to the lender’s terms, conditions and lending criteria. Fees and charges apply. Judge Lending works alongside Judge Accountants; tax advice is provided by Judge Accountants, registered tax agent 24767487.
Frequently asked questions
Should my investment loan be interest-only?
Interest-only keeps repayments lower and, if you also have a home loan, lets you put spare cash against the non-deductible debt first. But you’re not reducing the debt, and interest-only rates are usually higher. We look at your whole position and your accountant’s view before recommending either.
Offset or redraw?
For any loan that might become an investment loan in future, an offset account is usually better. Money in an offset account is still your savings; money paid into a loan and redrawn later is treated as new borrowing, and its tax deductibility depends on what you use it for.
Can my SMSF borrow to buy property?
Yes, through a limited recourse borrowing arrangement. The property is held in a separate bare trust until the loan is repaid, and if the loan defaults the lender can only claim that property, not the fund’s other assets.
What do lenders want for an SMSF loan?
Expect a larger deposit than for a personal loan, cash left in the fund after settlement, and contributions that can cover the repayments. Fewer lenders offer SMSF loans, and rates are usually higher, so it’s important to compare.
Can my SMSF buy a property from me or rent it to me?
An SMSF can’t buy residential property from you or a relative, or rent it to you. It can buy business real property, such as your business premises, from you at market value and lease it to your business at market rent.
Ready to talk?
Book a free consultation of up to an hour, in the office or by video, or just call.