An SMSF property loan lets a self-managed super fund borrow to buy an investment property, residential or commercial, through a limited recourse borrowing arrangement (LRBA). The structure is specific: the property is held in a separate holding trust, and the lender’s recourse is limited to that property, which is part of why not every lender offers these loans.
At Loanworx, we arrange SMSF property loans with the lenders who operate in this space, compare the options, and structure the finance to fit the arrangement. SMSF borrowing is governed by strict rules, so we work alongside your accountant, financial adviser and SMSF specialist rather than in place of them.
As an experienced finance broker, we handle the finance side. Whether buying property inside your SMSF suits your fund and your strategy is a decision for you and your licensed advisers; our role is to source and structure the loan once that decision is made.
Considering property inside your SMSF? Call us on 1300 562 696 or get in touch and we’ll be back to you shortly.
SMSF lending has a structure all its own. Here’s what sits behind it.
The property is held in a separate holding trust, and the lender’s recourse is limited to that single asset. If something goes wrong, the fund’s other assets are protected, which is the defining feature of an LRBA.
An SMSF can borrow to buy investment property of either type. Each has its own lender appetite and its own loan-to-value ratio, and commercial property bought through a fund has its own particular rules.
Only some lenders offer SMSF loans, each with its own policies, rates and requirements. That narrower field makes matching your fund to the right lender especially important.
SMSF lending sits at the intersection of finance, super and tax, and the structure has to be right. The property must be held in the correct trust, the borrowing must be limited recourse, and the loan has to fit within the fund’s strategy and the rules that govern it.
We arrange the finance with SMSF-capable lenders and coordinate with your accountant and adviser so the loan fits the structure. We’re not financial or tax advisers, so whether SMSF property suits your fund is a decision for your licensed professionals; our role is to source and structure the loan.
SMSF property loans are one of four specialist solutions we offer. Explore the others below to find the right fit.
Flexible personal loans and competitive car finance, sourced from lenders who suit your situation and structured around your budget.
Short-term private funding for time-sensitive deals and situations the banks can’t move on, secured and built around a clear exit.
Home loan benefits for eligible professionals, including LMI waivers at higher LVRs and sharper pricing, with select lenders.
SMSF loans are assessed on the fund and the property, within strict rules. These are the factors that matter.
Lenders look at the SMSF itself, its members, its trust deed and its investment strategy, to confirm the borrowing is permitted and fits the fund. The fund, not you personally, is the borrower.
Residential and commercial property are treated differently, with their own lender appetite and rules. Commercial property bought through a fund, particularly business premises, has its own specific considerations.
SMSF lending is generally more conservative than standard lending. As a broad guide, residential SMSF loans are commonly funded up to around 70% to 80% of value and commercial up to around 65% to 75%, with select lenders, though this varies.
Lenders want to see that the fund can service the loan from rent and contributions while retaining enough liquidity to meet its other obligations. The fund’s cash flow and buffer are part of the assessment.
The holding trust, the LRBA and the fund’s compliance all have to be correct, which is why this is done alongside your accountant, adviser and SMSF specialist. We arrange the finance to fit the structure they put in place, and present the fund to the right lender accurately.
Specialist lending isn’t only about the headline rate. It’s about being matched to a lender that will approve your scenario, structuring it correctly, and having someone manage the process. Here’s what working with us looks like.
We compare across specialist, non-bank, private and SMSF-capable lenders that most borrowers never see, so you get a genuine spread of options rather than one lender’s view. We match your scenario to the lender most likely to approve it on sensible terms.
You deal with experienced brokers who expect to see self-employed income, trusts, SMSFs, professional packages and short-term deals, and who know how to present each one to the right lender accurately rather than force-fitting it into a generic application.
From the first conversation to settlement, we prepare the submission, liaise with the lender, coordinate with your accountant or adviser where needed, and keep you updated at each stage, so the deal keeps moving and you’re never chasing it.
For most loans, Loanworx is paid an upfront and trail commission by the lender after settlement, and that commission typically does not change the rate or fees you pay. Where a fee for service applies to a more complex scenario, we disclose it in writing before any work begins. No surprises.
It’s a loan that lets a self-managed super fund borrow to buy an investment property through a limited recourse borrowing arrangement (LRBA). The property is held in a separate holding trust, and the lender’s recourse is limited to that property, protecting the fund’s other assets. It’s used to acquire residential or commercial investment property within super, under strict rules.
Yes, a complying SMSF can borrow to buy investment property through an LRBA, provided the fund’s trust deed and investment strategy allow it and the arrangement is set up correctly. Whether it’s appropriate for your fund is a decision for you and your licensed advisers. Our role is to arrange and structure the finance once that decision is made, alongside your accountant and SMSF specialist.
Yes. An SMSF can borrow to buy residential or commercial investment property. A key difference is that commercial property classed as business real property can be leased to a related business at market rates, while residential property bought by the fund cannot be lived in or rented by fund members or related parties. Your adviser will confirm what fits your fund and strategy.
SMSF lending is more conservative than standard lending. As a broad guide, residential SMSF loans are commonly funded up to around 70% to 80% of the property value and commercial up to around 65% to 75%, with select lenders, and the fund must also retain enough liquidity to service the loan and meet its obligations. We’ll give you a realistic figure for your fund and the specific property.
For residential property bought by the fund, no. It’s an investment of the fund and cannot be lived in or rented by members or related parties. Commercial property classed as business real property can be leased to a related business, but only at market rates and under the rules. These are compliance matters, so your accountant or SMSF specialist should confirm what’s permitted before you proceed.
Yes. SMSF borrowing is governed by strict super, tax and compliance rules, and the structure has to be correct, so it’s done alongside your accountant, financial adviser and SMSF specialist. We arrange and structure the finance; the suitability of the strategy and the compliance of the fund sit with your licensed professionals. We’re glad to work directly with them throughout.
Have a scenario that falls outside the standard bank mould? Talk it through with a specialist broker, with no cost and no obligation. Call us on 1300 562 696 or get in touch and we’ll be back to you shortly, ready to map out what’s possible.
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