SMSF loans Australian trustees can approach with clarity
Buying property through your self-managed super fund involves strict rules and a smaller pool of lenders. Once your advisers have confirmed the strategy suits you, we find and arrange the finance.
- LRBA finance for SMSFs
- Residential and commercial property
- We work alongside your advisers
SMSF loans in Australia: how borrowing through super works
A self-managed super fund can borrow to buy property, but only through a specific structure called a limited recourse borrowing arrangement (LRBA). While the loan is being repaid, the property is held in a separate bare trust, sometimes called a security or holding trust, and the fund holds the beneficial interest. If the fund defaults, the lender's claim is limited to that property rather than the fund's other assets. Fewer lenders offer SMSF loans than standard home loans, and many of those that do are specialist or non-bank lenders, so knowing who is lending and on what terms makes a real difference. We work with SMSF trustees right across Australia, by phone, email or Google Meet.
The fund can buy residential or commercial property, but the rules are strict. The purchase must meet the sole purpose test, which means it is made solely to provide retirement benefits for members. The property must be a single acquirable asset, such as one title, and there are limits on changing or improving it while the loan is in place. Residential property cannot be lived in or rented by members or their related parties. Business real property, such as an office, shop or warehouse, can be leased to a related party's business at market rent under a formal written lease, which is why some business owners use their SMSF to buy their premises. Our commercial property loans page explains how lenders assess commercial premises.
Lenders are generally more conservative with SMSF loans. Maximum loan-to-value ratios are typically around 70% to 80%, lower than many standard loans, so the fund needs a sizeable deposit plus money for stamp duty, costs and a liquidity buffer. Loan terms are usually 25 to 30 years, often on principal and interest. Set-up costs can include establishing the bare trust and, where needed, a corporate trustee, as well as legal and valuation fees. Importantly, we provide credit assistance only. Whether to set up or use an SMSF, and whether property suits your retirement strategy, needs advice from a licensed financial adviser or SMSF specialist and your accountant. We work alongside them once that advice is in place.
How we help SMSF trustees
Specialist lender access
Fewer lenders offer SMSF loans, and many are specialist or non-bank lenders. We keep track of who is currently lending to SMSFs and the general terms they offer.
Structure explained clearly
We explain how the LRBA, bare trust and fund fit together from a lending point of view, so you understand what the lender will ask to see and why.
Deposit and buffer planning
We work through the deposit, purchase costs and liquidity buffer the fund is likely to need, based on the lower loan-to-value limits SMSF lenders apply.
Residential and commercial
Whether the fund is buying a residential investment or business premises, we match the property type to lenders that are comfortable with it.
Working with your advisers
We coordinate with your financial adviser, SMSF specialist, accountant and solicitor, and we stay within our role of arranging credit for the fund.
Paperwork handled
We gather the trust deeds, fund statements and property documents lenders require, then manage the application through to approval and settlement.
Who we help with SMSF finance
Every situation is different. If yours isn't listed, ask us anyway. Chances are we've seen it before.
Check my optionsHow SMSF finance comes together
Advice comes first
Before any application, you get advice from a licensed financial adviser or SMSF specialist and your accountant on whether borrowing through the fund suits your retirement strategy.
Fund and property review
We review the fund's balance, contributions and liquidity alongside the property type, then gauge the likely loan-to-value ratio and the lenders to approach.
Structure and documents
Your solicitor or SMSF specialist sets up the bare trust and any corporate trustee, and we confirm the documents each lender needs to see.
Application and approval
We lodge the application, arrange the valuation and deal with the lender's questions, keeping you and your advisers updated through to formal approval.
Settlement and reviews
We coordinate settlement with your solicitor, then review the loan over time so it continues to suit the fund as rates and balances change.
What lenders usually ask for
Having these ready speeds everything up. Don't worry if something's missing; we'll tell you exactly what each lender needs.
Run the numbers first- SMSF trust deed and trustee details
- Bare trust (security trust) deed
- Corporate trustee company documents, if applicable
- Latest audited SMSF financial statements and tax return
- Recent fund bank and investment statements
- Member contribution history and super statements
- Contract of sale for the property
- Lease agreement or rental appraisal
- ID for all trustees, directors and members
- Your adviser's statement of advice, if the lender requests it
SMSF Property Loans: your questions answered
What is a limited recourse borrowing arrangement?
A limited recourse borrowing arrangement, or LRBA, is the structure a self-managed super fund must use to borrow to buy property. The property is held in a separate bare trust while the loan is repaid, and the fund holds the beneficial interest. If the fund defaults, the lender can only claim that property, not the fund's other assets. Once the loan is repaid, legal title can be transferred to the fund.
Can my SMSF buy residential property?
Yes, but strict rules apply. The purchase must meet the sole purpose test of providing retirement benefits, and the property cannot be lived in or rented by fund members or their related parties, even at market rent. In most cases it also cannot be bought from a related party. Your financial adviser or SMSF specialist can confirm whether a residential property suits your fund before we look at finance.
Can my SMSF buy my business premises and lease them to my business?
Business real property, such as an office, shop, factory or warehouse used wholly and exclusively in a business, can be leased to a related party's business. The lease must be formal, in writing and at market rent, and its terms must be followed. Many business owners use this approach, but it needs careful set-up, so your accountant and SMSF specialist should confirm the structure before we arrange the finance.
How much deposit does an SMSF need to buy property?
SMSF lenders typically lend up to around 70% to 80% of the property's value, which is lower than many standard loans. That means the fund usually needs a sizeable deposit, plus money for stamp duty, legal and set-up costs, and a liquidity buffer so it can keep meeting repayments and expenses. Lender policies vary and change, so we check current requirements for your fund.
Why are there fewer lenders for SMSF loans?
SMSF loans involve more complex structures and documentation, and the lender's claim is limited to the property, so a number of larger lenders no longer offer them. Many SMSF loans are now provided by specialist and non-bank lenders, each with its own pricing and conditions. Loans commonly run for 25 to 30 years, often on principal and interest. We compare the lenders currently active in this market.
Can you tell me whether an SMSF is right for me?
No. We provide credit assistance only, which means we help find and arrange suitable finance. Whether to set up or use an SMSF, and whether buying property fits your retirement strategy, needs advice from a licensed financial adviser or SMSF specialist and your accountant. Once that advice is in place, we work alongside your advisers to source a loan that suits the fund.
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ExploreHas your adviser recommended SMSF property?
Talk to us once your advisers have confirmed the strategy, and we will compare SMSF lenders and explain the likely deposit and costs.