Are you looking to buy property in Super? One of the most neglected parts is typically the finance… contrary to most beliefs, it is not a standard residential loan. It is a non-recourse loan that is typically processed through a different area of the bank. Here are some of the key differences of a super loan compared to an investment loan;
- Different borrowing capacity – it is based on your super balance and contributions as opposed to your income
- Higher interest rate – there is typically no discount on the super loans
- More documentation required – The amount of paperwork is considerably higher with a super loan and generally it all needs to be certified
- Financial Advice Letter – They don’t usually tell you this until the end, but you typically need a letter from a Financial Advisor
- Longer time frame – It just takes longer to complete the full process so give yourself plenty of time to get the loan
These are just the main differences and each bank will have slightly different processes. If you need help with one or you are looking to buy property in super make sure you get in contact with us.