Once you have decided to borrow to acquire a Residential or Commercial Property using borrowings you will need to follow the process detailed below: 

Step 1:  Setup your SMSF

Prior to even considering purchasing a Residential or Commercial Property you must first establish your SMSF.  Once the SMSF has been established ESUPERFUND will send you an "Establishment Package" with all your SMSF Details.  At this time you will be ready to Rollover your existing Super benefit and make Contributions to the SMSF.  The process to setup a SMSF is detailed here.

Step 2:  Rollover your Super Benefit and Contribute to the SMSF

Once the SMSF has been established you will need to Rollover your Super Benefit and commence making Contributions to your SMSF.  The process to Rollover your SMSF Benefit is detailed here.

Step 3:  Determine Loan Required (Optional)

To determine the Loan required and whether it is within the relevant Lenders Maximum Loan and LVR Requirements you will need to visit our Loan Analysis Calculator here.  This Step is optional.

Step 4:  Apply for Loan Pre Approval

To determine whether you are likely to qualify for a Loan you will need to apply for Loan Pre Approval by requesting a prepopulated Application form from ESUPERFUND.  The request for a Pre Approval Application must be done using the ESUPERFUND Loan Pre Approval Application here.  It is advisable that the Loan Pre Approval is requested to ensure that you will not be liable for unnecessary application fees and Security Custodian Trust fees in the event that the Loan Application is rejected later. 

Step 5:  Sign and return Loan Pre Approval Documentation

On lodging a Loan Pre Approval Application online, a prepopulated Loan Application will be mailed to you for completion and signing.  The documentation must be returned to our office for review and lodgment with the relevant Lender for Pre Approval.  Importantly there are no costs incurred by you by lodging a Pre Approval Loan Application.  To the extent that the Loan is Pre Approved by the Lender you will be notified directly by that Lender and then you can proceed to the next step.

Step 6:  Setup Company to act as Trustee for the Security Custodian

In order for a SMSF to borrow to acquire property it must establish a Security Custodian Trust Structure.  The Security Custodian Trustee must be a Company.  The Directors and Shareholders of the Security Custodian Trustee Company must be the Trustees of your SMSF (if you have Individual Trustees) or the Directors of the Company (if you have a Company as Trustee for your SMSF).  If you do not have an existing Company to act as the Security Custodian Trustee (this Company cannot also act as the Trustee of your SMSF), this can be done with any firm that establishes Companies. A popular site used by our clients to establish a Company for their SMSF is Cleardocs.  The Cleardocs company establishment service can be found here.

Step 7:  Setup Security Custodian Trust

Once you have established a Company and the Company has been issued with an ACN, you can proceed to our Security Custodian online application to establish the Security Custodian Trust.  This Application can be found here.

Step 8:  Sign Security Custodian Trust Documentation

Documentation to establish the Security Custodian Trust will be forwarded to you for signing.  This documentation should be signed and retained until the Property has been acquired.  The signed documentation should only be returned once the Property has been purchased (see below).  At that time the Security Custodian Trust documentation should be returned with the Contract of Property Purchase.  Please refer to our Rates & Fees Section here for all Fees relating to the establishment of the Security Custodian Trust Structure.

Step 9:  Purchase Property

Once the Security Custodian documentation has been signed the Security Custodian Trust Structure will have been established meaning you can purchase the Property of your choice.  When signing the Purchase Contract to acquire the Property please ensure the following occurs:

-The Property must be purchased in the name of the Security Custodian Trustee Company.
-All Directors of the Security Custodian Trustee Company must sign the Purchase Contract.
-It is recommended that the Purchase Contract be signed "subject to finance".
-You must not put the name of your SMSF or the Name of the SMSF Trustees on the Purchase Contract.

Example:

If the Security Custodian Trustee Company Name is Smith Pty Ltd then the purchaser on your Purchase Contract will be:  Smith Pty Ltd.  Neither the Trustees of your SMSF or the SMSF itself should be named on the Purchase Contract when borrowing to purchase Property in your SMSF.

Step 10:  Return Security Custodian Trust and Property Purchase Contract Documentation

Once the Purchase Contract has been signed to acquire the Property a certified copy of the signed Purchase Contract together with the Security Custodian Trust Documentation signed at Step 7 will need to be returned to ESUPERFUND at Reply Paid 401, North Melbourne VIC 3051.

Step 11:  Stamping of the Security Custodian Trust

On receipt of the documentation, ESUPERFUND will arrange the stamping of the Security Custodian Trust with the State Revenue Office if required.  All documentation will in turn be reviewed and if completed correctly lodged with the relevant Lender for final Loan Approval and Settlement.

Step 12:  Final Loan Approval Granted by Lender

Once Final Loan Approval has been granted, the Lender will forward the Loan Offer Document to you for signing.

Step 13:  Loan Offer Documents to be signed and returned

The Loan Offer Documents will need to be signed and returned to the Lender.

Step 14:  Property Settlement

At Settlement the monies to fund the Property will come from cash from the SMSF and the Loan being advanced.  The Vendor at that time will provide a copy of the signed transfer of the Property to the Trustee of Security Custodian Trust (ie you).

Step 15:  Property Transfer and Mortgage Registration

The Property Transfer to the Security Custodian Trustee and the mortgage are registered.  This will be arranged by your solicitor or conveyancer.

Step 16:  Property Rent and Expenses

After settlement the Property can be rented.  The Rent must be deposited into the ANZ V2 Plus Bank Account.  All Property Expenses including loan repayments will need to be made from the ANZ V2 Plus Bank Account.