Borrowing Inside Super vs Outside Super

Many investors don’t realise they may also have the option to borrow inside their superannuation through a Self-Managed Super Fund (SMSF).

However, borrowing capacity works a little differently depending on whether the loan sits inside super or outside super.

Inside Super

• Borrowing capacity is mainly based on super contributions and rental income
• Lenders generally apply more conservative lending rules
• Higher deposits are usually required

Outside Super

• Borrowing is based on your personal income and financial position
• There are more lenders and loan structures available
• This often results in higher borrowing capacity

Understanding how borrowing works in both environments helps investors choose the structure that best supports their long-term investment strategy.

The team at Anu Finance Solutions can help you understand your borrowing capacity both inside and outside super, and how to structure it to support your long-term investment goals.

If you’d like clarity on your borrowing power, contact Anu Finance Solutions for a quick strategy conversation today.