Exit strategy using Superannuation

How much super balance one has to have in order to comfortably retire and be able to repay home loan?

Say, I have $1m in super and seeking a loan of $500k. Comes retirement, I can repay loan fully and still left with $500k for retirement.

What if I had $600k or $700k only in super?

Question is, how much super balance one needs to have (at the time of retirement) to be eligible for a home loan now using "repay loan using super" as valid exit strategy?

 

I'm not sure anyone can answer that without having all the information around your individual situation.

This may help:
Superannuation calculator - Moneysmart.gov.au

 

This depends on a huge array of factors.
The correct answer is - As much as possible.

 

It depends on your age and overall balance. Its not a black and white answer.

If you had a $500K loan to repay at requirement age and your super balance at that time was projected to be $550K then that might not work for a lender especially if you were over 55 already for example.

If however you were also sitting on a home worth $3M or something like that then obviously you could have down size options as well.

 

I think I didn't put my question the right way. The question is related to lender's policies around acceptable exit strategy.

I know lenders accept super balance as valid exit strategy. Logic is: At retirement customer can use super money to repay the loan.

If super balance is $500k and loan sought is for $500k then obviously lenders won't accept it as valid exit strategy because once loan is payed customer will not have any money left for retirement.

But if super balance is $1m, the money leftover(after paying off loan) is $500k which is reasonably sufficient to fund retirement.

So, the question is:
How much super balance is acceptable by the lenders(in order to approve loan of $500k)?

Assuming no other assets or liabilities. Single. No dependents. No substantial cash or savings. Loan sought on 80% LVR.

 

In your example, what if I have $1m projected super balance? The loan sought is for purchase of owner occupier. Downsizing is not an option.

$550k as super balance is too low, $2m may be more than enough. I am looking for that magic number(sweet spot) where banks say yes you have enough money in your super balance (projected) to be eligible for a home loan of $500k.

 

That would be enough all things being equal.