Can SMSF be guarantor of a loan?

Discussion in 'Superannuation, SMSF & Personal Insurance' started by s_foulds, 27th Aug, 2012.

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  1. s_foulds

    s_foulds New Member

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    I'm new to SMSFs - Is it possible to use the SMSF as guarantor on a personal loan?
     
    s_foulds, 27th Aug, 2012
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    no. SMSF assets cannot be mortgaged.
     
    Terry_w, 27th Aug, 2012
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  3. Superman__

    Superman__ Well-Known Member

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    What Terry said. A guarantor needs to be a real person - not an entity.

    You also can't use SMSF assets as security for external borrowings. That would be bad.

    SM
     
    Superman__, 8th Sep, 2012
    #3