Services
SMSF loans
We arrange lending for property bought through a self-managed super fund, residential or commercial.
We arrange the loan. We don’t advise on whether an SMSF or a property investment suits you. Speak to a licensed financial adviser or SMSF specialist about strategy, compliance and tax before you go ahead.
How we can help
- SMSF property loans
- Limited recourse borrowing for residential or commercial property.
- Refinancing
- Review an existing SMSF loan’s rate or terms.
- Loan structure
- We explain how SMSF loan structures work (bare trust, limited recourse) and what lenders require, alongside your adviser.
- Application support
- Trust deed, fund financials, investment strategy and property details, gathered and lodged.
FAQ: SMSF loans
What is an SMSF loan?
An SMSF loan is a loan that allows you to borrow money through your Self-Managed Super Fund (SMSF) to purchase property as an investment of the fund. The property purchased must meet the investment goals of the fund and comply with SMSF rules.
What type of property can I buy with an SMSF loan?
You can use an SMSF loan to purchase both residential and commercial properties. However, the property must be purchased for investment purposes and not for personal use. It must also meet the SMSF’s investment strategy and comply with superannuation laws.
Can I borrow to buy a property in my name through my SMSF?
No, the property purchased through your SMSF must be held in the name of the SMSF trustee, not in your personal name. The property can only be used for investment purposes, and you cannot live in it or use it for personal use.
How much can I borrow with an SMSF loan?
The amount you can borrow depends on various factors, including the value of your SMSF, your fund’s existing assets, and the property you wish to purchase. Typically around 20% deposit with up to 80% borrowed. This varies by lender policy.
Are there any restrictions on borrowing with an SMSF?
Yes, there are restrictions. The property must be held in a separate trust (a bare trust) and the loan must be a "limited recourse loan," meaning the lender can only claim the property if the loan is not repaid. SMSF loans are also subject to strict compliance with superannuation laws and regulations.
Can I use an SMSF loan to refinance an existing property?
Yes, you can refinance an existing property within your SMSF to review the loan’s rate and terms or release equity, subject to SMSF rules and lender assessment.
How do I apply for an SMSF loan?
The application process for an SMSF loan typically involves providing documentation about the SMSF, including its trust deed, financials, and investment strategy. You will also need to submit information about the property you wish to purchase. We can help you prepare and lodge the application.
What are the risks involved in an SMSF loan?
Like any investment, borrowing through an SMSF comes with risks, including the potential for reduced property values, changes in interest rates, or challenges in repaying the loan. It is important to ensure that the property is suitable for long-term investment and that the SMSF can meet its obligations under the loan.
Can I access the equity in my SMSF property?
Yes, you can access equity in your SMSF property through refinancing or by selling the property. However, you must ensure that any actions comply with the SMSF rules and meet the fund’s investment strategy.
Do I need a financial adviser to apply for an SMSF loan?
It’s not a legal requirement, but we strongly recommend getting advice from a licensed financial adviser and an SMSF specialist. We work alongside your adviser on the lending side.
Ready to talk about SMSF loans?
Tell us what you are planning and we’ll set out the steps.
Book a chat