Four huge reasons you should rethink accessing superannuation for your home

With every financial decision you make, there will be pros and cons.

At Loan Gallery, we always want you to have the facts to make an informed decision.

Firstly, let’s acknowledge that many people are doing it tough financially. In the current pandemic, accessing money from super may be essential for day-to-day survival. 

The Australian Government now allows individuals experiencing financial hardship from Coronavirus to access their superannuation early. Those who meet the eligibility criteria can withdraw up to $10,000 the 2019/2020 financial year and another $10,000 in the 2020/2021 financial year.


  1. Withdrawing your super early classifies you in ‘financial hardship’. Financial hardship relates to a perceived difficulty to meet the repayments on one or multiple financial commitments due to a change in circumstances, which may or may not be temporary.
  2. If your work hours have been reduced and you are looking to apply for finance, you’ll need to work closely with your mortgage broker to put you in the best position possible to achieve a loan approval. This needs to be handled very sensitively with lenders given that accessing your super early typically labels you as suffering ‘financial hardship’.
  3. Early withdrawal of your super will negatively impact the size of your nest egg by the time you reach retirement age. That might seem a long way off, but you need to carefully think about that impact. The Moneysmart calculator here lets you estimate what that impact could be.
  4. Investigate other solutions first! Some banks are offering temporary repayment deferrals on mortgages for existing loans. First home buyers may benefit from the First Home Super Saver Scheme. Or, you may be able to refinance to a better loan that decreases your monthly repayments.

Our recommendation:

On balance. If you don’t genuinely need the money, keep it in superannuation because it is tax effective and one of the best ways to grow your lifetime wealth. Plus, no-one wants to be left short of funds when they retire! 

Another great way to grow your wealth is to invest long term in property. It may not be as out of budget as you think. Oftentimes, it is a matter of finding a personalised solution that suits your individual circumstances.

Ultimately, there may be a more imaginative solution to your needs instead of drawing down “super”. 

If you’d like to discuss current options for refinancing, a first home loan, or commercial property loan, contact us now. All conversations are confidential and obligation free! 

Please note: we do not provide tax, legal or accounting advice. This guide has been written for general informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. We encourage you to consult your own tax, legal and accounting advisers before engaging in any transaction. 

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