Buy property in your super — done properly.
SMSF lending is a specialist world: the major banks left it years ago, the borrowing must be structured as a limited recourse arrangement, and the compliance rules are unforgiving. We match your fund to the specialist lenders still writing these loans, and make sure the structure is right before you commit.
New residential SMSF loans are closing.
Under legislation passed in June 2026, from 10 August 2026 an SMSF can no longer enter a new limited recourse borrowing arrangement to buy residential property. What that means:
- Residential — closing window. A new purchase needs its contract exchanged before 10 August 2026. Existing SMSF loans are grandfathered, and refinancing an existing arrangement is still allowed.
- Commercial / business real property — unaffected. SMSFs can still borrow to buy commercial property. It stays a live strategy, and it's often the stronger fit for a business owner.
Based on the Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (Royal Assent 26 June 2026; commences 10 August 2026). General information only, current at July 2026 — not financial, tax or legal advice; confirm your position with a licensed adviser.
How an SMSF property loan works.
An SMSF can't just take out a normal mortgage. It borrows through a Limited Recourse Borrowing Arrangement (LRBA), where the property is held in a separate trust until the loan is repaid.
Your SMSF
The fund provides the deposit and pays the loan from its contributions and rent.
Holding trust
A separate "bare" trust holds the property on the fund's behalf while the loan is on foot.
The lender
A specialist SMSF lender funds the purchase, secured only against that one property.
The property
Rent flows to the fund; once the loan is repaid, the fund takes direct title.
Property is a big part of the picture.
Australian SMSFs spread their assets across shares, cash and property. Direct property — residential and commercial — is a substantial slice, and it's the one you can use borrowing to acquire.
Share of total SMSF assets by class; highlighted bars are direct property (~$178bn combined — commercial is roughly double residential). Source: ATO SMSF quarterly statistical report, detailed asset table (Dec 2025 quarter; leading classes reconfirmed in the Mar 2026 highlights). Rounded and indicative.
Residential or commercial.
Residential property
A residential investment held by the fund — never lived in or rented by you or a related party. New residential SMSF borrowing closes on 10 August 2026, so a purchase now needs its contract exchanged before then; existing loans can still be refinanced. Typical max LVR ~70–80%.
Commercial property
Business real property — including premises your own business leases from the fund at market rent, one of the few related-party arrangements SMSF rules allow. Unaffected by the 2026 change, and often the stronger long-term play. LVRs are usually more conservative.
Get the compliance right first.
SMSF borrowing is tightly regulated by the ATO. Break these and the consequences fall on the fund — so we check them before anything else.
Single acquirable asset. The borrowing can fund one asset (or a collection of identical assets), not a renovation-and-flip of many.
No improvements with borrowed money. You can maintain and repair, but you can't use borrowed funds to improve or substantially change the property.
Arm's length only. Residential SMSF property can't be lived in or rented by members or related parties — it must be a genuine investment.
Sole purpose test. Everything the fund does must be for members' retirement benefits — not a present-day lifestyle benefit.
Liquidity & balance. There's no legal minimum, but the fund needs enough balance and cash flow to cover the deposit, costs and repayments comfortably.
Right advice. SMSF property is a financial-advice decision — we handle the lending; your accountant or licensed adviser confirms it suits your fund.
The SMSF lending landscape.
Self-managed super funds
Holding about $1.06 trillion in assets between them (ATO, Mar 2026).
LRBA rates today
Residential SMSF loans sit above standard home loans; commercial from around 6.25%. Specialist lenders only.
Big four exited
The major banks stopped writing SMSF loans years ago — this is a specialist-lender market now.
What the assessment shows.
- Property $600,000
- Fund contributes (deposit + costs) ~$180,000
- LRBA loan $420,000 (70% LVR)
- Structure bare trust + specialist lender
- Specialist lenders that fit shortlisted
- Resi vs commercial LVR compared
- Liquidity buffer check flagged
- Structure & advice steps mapped
Illustrative example only, not an offer of credit, and not financial or tax advice. SMSF borrowing suitability depends on your fund and circumstances — confirm with a licensed financial adviser and your accountant. Figures are confirmed in writing.
SMSF loan FAQs.
Can I live in a property my SMSF buys?
No. A residential property owned by your SMSF can't be lived in or rented by you or any related party — it must be a genuine arm's-length investment held for the fund's retirement purpose. Commercial (business real property) is different: your own business can lease it from the fund at market rent.
Can my SMSF still borrow to buy residential property?
Only for a limited time. Under legislation passed in 2026, from 10 August 2026 SMSFs can't enter new borrowing arrangements to buy residential property — a purchase needs its contract exchanged before that date. Existing SMSF loans are grandfathered and can still be refinanced, and borrowing to buy commercial (business real property) is unaffected. We'll tell you which options are open to your fund.
Why don't the big banks offer SMSF loans?
The major banks withdrew from SMSF lending around 2018-19. Today SMSF loans come from a smaller group of specialist and non-bank lenders, each with different rates, LVR limits and servicing rules — which is exactly why comparing across the specialist panel matters.
How much deposit does my SMSF need?
SMSF loans typically cap out around 70-80% LVR for residential (lower for commercial), so your fund generally needs at least a 20-30% deposit plus costs and a liquidity buffer. There's no legal minimum fund balance, but the fund must comfortably service the loan.
Do SMSF loans cost more than normal home loans?
Yes, generally. The limited-recourse structure and specialist lender market mean SMSF loan rates sit above standard owner-occupier home loans. We find the sharpest available for your fund's profile.
Do you give financial advice on whether to do this?
No — we arrange the finance. Whether SMSF property suits your fund is a financial-advice decision for a licensed adviser, and the fund's compliance is confirmed with your accountant. We work alongside them and handle the lending side. Details are in our Credit Guide.
Explore an SMSF loan.
Tell us about your fund and the property, and we'll come back with the specialist lenders that fit — and whether the structure stacks up.
Start my complimentary assessment →Related