Assumming that the in house asset rules (related party) are not being breached then the ownership or percentage thereof could rest with the SMSF. On title would be the name of the SMSF trustee either as a joint tenant or as tenants in common depending on how the ownership is to be structured.

However if the above is the case you can not then mortgage the property for a number of reasons.

1/ A SMSF can not mortgage a property unless it is done properly under the Limited Recourse Borrowing Arrangement (LRBA) whereby a bare trust needs to be established and property "owned" by this entity for the benificial owners of the SMSF and it's members.

2/ The ATO has previously considered joint SMSF investors owning an asset via one bare trust and determined (ATO ID 2010/172) that it was not possible where borrowings are being contemplated.

Whilst purchasing as tenants in common enables the SMSF to take ownership of a fixed percentage of a property, with another party (such as an individual or trust) owning the remaining percentage, the ATO considered that jointly borrowed under a single holding trust breached the law.

The ATO held that the requirement for the asset the SMSF trustee was acquiring to be held on trust and for the SMSF trustee to acquire a beneficial interest in that asset was not met because:

• the asset the trustee of the bare trust held was 'sole title to the residential property; but

• the interest the SMSF trustee acquired was only a partial interest in the property — that is, a joint interest with the other party, each as a tenant in common.

On top of this lenders want nothing to do with JV's and the like when SMSF's are involved.

hi

As others have said……it depends on a lot of things but overall financial risk assessment of the borrower by lenders is the main thing that drives end rate.

As an example, doing one now for extremely wealthy professional. Loan is stand alone $1.26M at 70% LVR for Sydney CBD strata commercial office suite. Variable rate to the borrower is approx 6.6% pa being BBSY plus customer margin 1.75%

Hi

Whats the security for the loan? Is it resi or commercial?

Hi

My understanding is that the title deed determines the percentage of claimable deductions. ATO ID 2002/363 & TR 93/23 states;
 
"that the loss or income from a rental property must be shared according to the legal interest of the owners, except in those very limited circumstances where there is sufficient evidence to establish that the equitable interest is different from the legal title".

On guaranteeing a loan in your husbands name…..I doubt that there is a lender out there that will entertain this as all will usually require you to be  a co-borrower rather than a guarantor.

Sorry ……….I stand corrected on The Rocks LVR its now 70%

You will need to be careful with 2nd mortgage/caveat vendor finance behind a bank because the bank (1st mortgagee) will most likely have clauses in their mortgage documentation  stating something along the lines of:

1/ that they must consent to any subsequent mortgage &
2/ that you cannot create another security without their consent and if you do you may be then deemed to be in default of the original loan/security arrangement.

Too many to list here in detail and depends on your individual situation but here are a few;

Minimum net SMSF Asset Position – CBA require minimum $300,000
Variable Interest rates – vary 7.67% to 8.59%
Monthly/ongoing fees – from $8pm to $93pm
LVR’s 65% to 80%
Minimum Loan Amounts – $10,000 to $250,000
Bank application/legal costs range – $2,200 to $3,200
Will lend to individual trustees – Not at 80% LVR

Westpac & CBA being the others