You can refinance your SMSF loans regardless you have borrowed from banks, financial institutions or related parties.
Before refinancing your SMSF loans, it is very important you check the following:
Please note you can not cash out the equity of the property when you refinance your SMSF loans.
SMSF trustees need to comply with the safe harbour guidelines required by ATO. Please refer point 7 in this link:
You can refinance your SMSF for cheaper interest rate. However, you are not able to use any interest rate you want if you refinance from banks to a related party. The interest required by ATO:
The following conditions must be met when you refinance between related parties or from a bank to a related party:
Failure to comply with the above requirements, the refinanced loan may be not on arm’s length terms. Trustees may need to provide evidence to prove the loan is a commercial loan based on the same circumstance to avoid breaching superannuation acts and legislation.