Sample of All FAQs (Helpie FAQ)

Frequently Asked Questions

  • What is a Self-Managed Super Fund or SMSF ?

    A Self-Managed Super Fund is a retirement investment fund. Before starting one, it’s crucial to understand its basics and seek guidance from a financial advisor. An SMSF loan functions as a mortgage used by the fund to purchase an investment property. Any returns, whether from capital gains or rental income, are reinvested into the fund.

  • Who is eligible for an SMSF loan ?

    Individuals who have an established self-managed super fund (SMSF) complying with Australian superannuation laws and seeking to invest in property through their fund may be eligible for an SMSF loan.

  • What types of properties can be purchased using an SMSF loan ?

    Typically, residential and commercial properties can be purchased through an SMSF loan. However, certain restrictions may apply, and it’s crucial to consult with a financial advisor to understand eligible property types.

  • How much can I borrow with an SMSF loan ?

    The borrowing capacity for an SMSF loan depends on various factors, including the SMSF’s financial situation, the property’s value, and the lender’s criteria. Generally, lenders can offer loans covering a significant portion of the property’s value, often up to 70-80%.

  • Can additional contributions be made to an SMSF to repay the loan faster ?

    Yes, additional contributions can be made to an SMSF to repay the loan faster, potentially reducing the loan term and overall interest paid. However, contribution limits and tax implications should be considered.

  • Can an existing property within an SMSF be refinanced using an SMSF loan ?

    Yes, it’s possible to refinance an existing property within an SMSF using an SMSF loan. However, this decision should be carefully evaluated based on individual circumstances and financial goals.

  • Can I live in a property with an SMSF loan ?

    There are some restrictions when it comes to any property bought with an SMSF loan, namely that you can’t construct a new home, nor can you live in the home at any stage until you retire. We recommend for any questions on this you speak to your accountant or financial advisor.

  • What are the fees associated with using Mortgage2Wealth's services ?

    There is no direct fee for our service to clients. Our compensation comes in the form of a commission from the lender you select, acknowledging our role in connecting you as a customer. We prioritise transparency and will furnish you with comprehensive details about our remuneration arrangements both in general terms during your initial inquiry and, specifically, for the lender you opt for.

  • How long does the mortgage application process take with Mortgage2Wealth ?

    The timeline can vary based on individual circumstances and the complexity of the transaction. However, our team works diligently to ensure a smooth and efficient process. During your consultation, we can provide an estimated timeline based on your specific situation.

  • What if I have a low credit score? Can I still get a mortgage through Mortgage2Wealth ?

    While credit scores are a factor, we understand that each individual’s financial situation is unique. Contact us to discuss your specific circumstances, and our team will explore potential solutions tailored to your needs.

  • How do I get started with Mortgage2Wealth ?

    To begin, reach out to our team for an initial consultation. We’ll guide you through the process, understand your requirements, and set the stage for a seamless and efficient mortgage experience.

  • How does the mortgage broker process work at Mortgage2Wealth ?

    Our mortgage brokers conduct a comprehensive interview to understand your needs and goals. Armed with this information, they present you with multiple choices, enabling you to assess interest rates, repayment amounts, and a variety of loan products.

  • Why should I choose a mortgage broker instead of going directly to a bank ?

    The advantage of using a mortgage broker lies in their ability to streamline the process, sparing you the effort of negotiating with different lenders, especially if you may not qualify for certain products. Ultimately, utilising a mortgage broker can lead to cost savings by identifying the right loan tailored to your specific circumstances.
    A broker also offers more choices than those confined to a single bank’s options, allowing you to compare the best interest rates, repayment amounts and loan products.

  • What is the role of a mortgage broker ?

    A mortgage broker serves as the intermediary connecting you with potential lenders. Operating in your best interests, the licensed and regulated financial professionals work diligently on your behalf. Their goal is to present lending solutions featuring competitive products and interest rates tailored to your unique circumstances and requirements.

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