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Can SMSF be guarantor of a loan?

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

  1. s_foulds

    s_foulds New Member

    Joined:
    27th Aug, 2012
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    2
    Location:
    Melbourne, Australia
    I'm new to SMSFs - Is it possible to use the SMSF as guarantor on a personal loan?
     
  2. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    653
    Location:
    Sydney
    no. SMSF assets cannot be mortgaged.
     
  3. Superman

    Superman Well-Known Member

    Joined:
    6th Nov, 2007
    Posts:
    343
    Location:
    Gold Coast, QLD
    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