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SMSF Lending

SMSF Home Loans — Buying Property Through Your Self-Managed Super Fund

Mortgagefy Broker Team · Published · Last reviewed

An SMSF can buy investment property using a Limited Recourse Borrowing Arrangement (LRBA). The fund borrows in its own name, the property sits in a separate trust, and only the property is exposed if the loan ever fails. We work with the lenders still actively writing SMSF loans in 2026.

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Who this guide is for

The real challenge

Many of the major banks have exited SMSF lending. Of those still active, each has slightly different rules — minimum fund balance, liquidity tests, single property type, residential vs commercial. Borrowers often spend weeks on the wrong lender before realising it doesn't fit.

The structuring is also complex — bare trust, custodian, single asset, no improvements without separate funding. Get one element wrong at the start and the ATO can deem the structure invalid.

How Mortgagefy helps

Mortgagefy works with the active SMSF-friendly lenders in Australia. We'll tell you upfront whether your fund balance, contribution rate and property goal will pass each lender's serviceability — before you waste time and money.

We coordinate with your SMSF accountant or specialist on bare trust setup, custodian selection and structuring. The borrowing piece is one part of a bigger compliance picture and we work alongside your professionals.

How it works — 4 simple steps

1

Fund review

Balance, contribution rate, member age, liquidity buffer — every lender weights these differently.

2

Lender match

Of the 6-8 active SMSF lenders we identify the 2-3 most likely to approve your specific scenario.

3

Trust structure

We coordinate with your SMSF accountant/specialist on bare trust and custodian setup.

4

Settlement

Application, valuation, settlement coordinated. Most SMSF loans settle in 6-10 weeks.

Frequently asked questions

Can my SMSF really buy investment property with a loan?

Yes — through a Limited Recourse Borrowing Arrangement (LRBA). The fund borrows, a separate bare trust holds the property, and the lender's recourse is limited to that single property. Strict compliance rules apply.

How much fund balance do I need to start?

Most lenders want $200K+ in the fund and at least 30% deposit on the target property. Some lenders want $300K+ minimum balance and a liquidity buffer post-purchase.

Can my SMSF buy property I will live in?

No — SMSF residential property must be at arm's length and cannot be lived in or rented to fund members or related parties. SMSF commercial property has more flexibility.

Are SMSF loan rates higher than personal investment loans?

Yes — typically 0.5-1.5% higher than a standard investor loan rate. The premium reflects the additional structuring complexity and limited recourse nature of the loan.

Can I improve or renovate the SMSF property?

Significant improvements need separate funding — not from the LRBA. Maintenance is fine. Get this wrong and the ATO can deem the structure non-compliant. We coordinate with your SMSF specialist on this.

Get a free SMSF property loan assessment

We work with the active SMSF lenders and your accountant or specialist to model the full picture — before you commit to a structure.

Start Your Free Assessment Call 0432 634 648

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