SMSF Loans
SMSF Loans — Buy Property Inside Your Super Fund
A Self-Managed Super Fund loan lets your SMSF borrow to invest in property. Done right, it is a powerful wealth-building strategy - we make sure it is done correctly.
Why Use an SMSF Loan
The Advantages of Borrowing Inside Super
Tax-Advantaged Growth
Rental income in super is taxed at just 15% - and in pension phase, potentially 0%.
Asset Protection
Property held in an SMSF is protected from personal creditors in most circumstances.
Business Premises
Your SMSF can buy the commercial property your business operates from - a powerful strategy.
LRBA Compliance
We work with SMSF specialists to ensure your Limited Recourse Borrowing Arrangement meets ATO requirements.
Grow Retirement Savings
Add a real property asset to your super portfolio alongside shares and cash.
Specialist Lender Access
Only select lenders offer SMSF loans - we know which ones to approach for your deal.
What You Need
SMSF Loan Requirements at a Glance
SMSF loans have specific eligibility requirements. Here is what you will need to have in place.
Established SMSF
Your fund must be set up and compliant before applying. We can refer you to a specialist if needed.
Sufficient Fund Balance
Most lenders require the SMSF to hold sufficient liquid assets after settlement - typically 5-10% of the property value.
Bare Trust (Holding Trust)
The property must be held in a separate bare trust until the loan is fully repaid - a legal requirement.
Sole Purpose Test
The property must be held for the sole purpose of providing retirement benefits to members.
LVR up to 70-80%
Most lenders lend to 70% LVR for residential SMSF loans; some will go to 80%. Commercial SMSF loans are typically lower.
Serviceability From Fund Income
The loan must be serviceable from super contributions, rental income and investment returns within the fund.
The Process
How We Arrange Your SMSF Loan
Strategy Session
We confirm your SMSF is structured correctly and assess which property type fits your goals.
Lender Selection
We identify SMSF-approved lenders with appetite for your deal type and negotiate terms.
Bare Trust Setup
We coordinate with your SMSF accountant and solicitor to establish the bare trust.
Application to Settlement
We manage the loan application, valuations and settlement - keeping everything on track.
Real Result
“We had always wanted to add property to our super but did not know how. Kevin walked us through the whole process and coordinated with our accountant. Could not have done it without him.”
— Michelle and Tony P., SMSF Investors - Chatswood
5.8% p.a.
Gross Rental Yield
15%
Tax Rate on Income
Customer Reviews
What Our Customers Say
FAQ
Common Questions
Yes, provided the SMSF is correctly structured and compliant. The loan must be a Limited Recourse Borrowing Arrangement (LRBA) and the property held in a separate bare trust until the loan is repaid. We strongly recommend working with an SMSF specialist accountant alongside us.
Residential investment properties, commercial properties (including your own business premises), and industrial properties. The property must pass the sole purpose test and cannot be lived in by fund members or their relatives (unless commercial and leased at market rates to your business).
Most lenders will lend to 70-80% LVR for residential SMSF loans. Commercial SMSF loans are typically capped at 65-70% LVR. LMI is generally not available for SMSF loans.
Yes - this is one of the most tax-effective strategies available. Your SMSF can purchase commercial property and lease it back to your business at market rent. The rental income is taxed at super rates and the asset grows within the fund.
Typically 6-10 weeks, due to the additional legal requirements around the bare trust and LRBA structure. We coordinate with your SMSF accountant and solicitor to keep things on schedule.
Generally yes - SMSF loans are specialist products offered by fewer lenders, which limits competition. However, the tax advantages of holding property in super often more than compensate for the rate difference.
Ready to Invest in Super?
Book Your Free SMSF Assessment
We will review your super fund position and walk you through whether an SMSF loan makes sense for your retirement strategy.
Free service. No obligation. Licensed mortgage broker.