Use your Self-Managed Super Fund to purchase residential investment property with competitive rates and loans up to $2 million. Take direct control of your retirement wealth.
Using your self-managed super fund to purchase residential investment property gives you direct control over your retirement wealth building strategy.
Use your existing super balance as a deposit to purchase a high-value residential asset, building equity through potential property value increases over time.
Borrowing through your SMSF allows you to purchase a property you might not afford outright, amplifying your fund's investment capacity with loans up to $2 million.
You and your members decide exactly which residential property to buy, ensuring the investment fits your specific retirement goals — not a fund manager's portfolio strategy.
These loans are structured as Limited Recourse Borrowing Arrangements, meaning your other super assets — cash, shares, term deposits — are legally protected if the property loan defaults.
Rental income and capital gains within an SMSF are generally taxed at a concessional rate of 15% (or potentially 0% in the pension phase) — significantly lower than personal tax rates.
SMSF loans can also fund commercial property — including premises leased by a fund member's own business. This means your super can effectively become your landlord.
Specialist SMSF lenders typically offer two distinct tiers depending on your deposit level and borrowing needs. Indicative rates shown — contact us for current pricing.
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SMSF property purchases use a specific legal framework called a Limited Recourse Borrowing Arrangement (LRBA) under the Superannuation Industry (Supervision) Act 1993. This structure protects your other super assets while enabling property investment.
The borrower and beneficial owner of the property. Can be structured as individual trustees (all members must be trustees) or a corporate trustee (all members must be directors). The trustee makes the investment decision and manages the loan repayments from the fund's assets.
A separate company holds legal title to the property on behalf of the SMSF. This must be a different entity from the SMSF corporate trustee. The custodian's sole purpose is to hold title — it has no other function. This entity is usually set up by your solicitor specifically for this purchase.
Provides the loan with limited recourse — meaning the lender has no claim on any other SMSF assets beyond the security property itself. If the loan defaults, only the property can be claimed — your cash, shares, and other super assets remain protected.
Once the loan is fully repaid, legal title transfers from the Custodian directly to your SMSF. The property becomes a freehold asset in your fund — no more loan, no more custodian. Your retirement fund now directly owns the property outright.
The "limited recourse" nature means if the property investment doesn't perform, the lender can only recover the property itself — not your other superannuation assets like cash, shares, or term deposits.
The bare trust custodian structure is required by the SIS Act. Without it, the borrowing arrangement would be illegal. Your solicitor and accountant play key roles in establishing and maintaining this structure correctly.
While the loan is limited recourse against the fund, all adult members of the SMSF must provide unlimited personal guarantees. This is a standard requirement across all SMSF lenders — your personal assets back the loan.
LRBA rules prohibit offset accounts, redraw facilities, and further advances. No renovations or improvements can be funded from the loan. Only Principal & Interest repayments are permitted — but unlimited additional repayments are allowed.
SMSF loan serviceability is different from standard home loans. The fund itself must demonstrate the ability to service the loan — not you personally. Here's what lenders assess:
Assessment rate floor: 5.75% p.a. — the minimum rate used regardless of actual product rate.
*Illustrative example only — rates and repayments are estimates based on indicative pricing at the time of writing and may vary. David and Karen's SMSF has $320,000 in assets — $255,000 used for the 30% deposit + costs, with the remaining balance exceeding the 5% liquidity requirement. Rental income at 80% plus employer SG contributions cover serviceability. Contact us for a personalised quote.
* This is a simplified example for illustration only. Actual loan terms depend on individual circumstances, credit assessment, and lender criteria.
Understanding what you can and can't purchase through your SMSF is critical to a successful application.
We guide you through every step, from fund eligibility to settlement.
We check your SMSF is ATO-compliant and has sufficient assets
Corporate trustee and bare trust entity established with legal guidance
Full application with trust deeds reviewed by lender's legal counsel
Independent legal advice obtained by all borrowers and guarantors
Loan settles, title held by custodian trust on behalf of your SMSF
Gather these documents to ensure a smooth application process.
Current trust deed with provisions for borrowing (reviewed by lender's legal counsel)
Fund must be listed as "Complying" on Super Fund Lookup
ID for all members, plus personal guarantee from all adult beneficiaries
Latest 2 years' tax returns + fund statements showing assets and income
Super fund statements showing SGC + voluntary contribution history
Contract of sale (purchase) or current loan details (refinance)
Security custodian trust deed — must be a separate company to the SMSF trustee
Required for purchases; may be waived for refinance if prior advice provided
Specialist SMSF lenders typically keep fees minimal. Below are estimated fees — actual costs may vary by lender and loan type.
| Fee Type | Purchase | Refinance |
|---|---|---|
| Application Fee | Typically $0* | Typically $0* |
| Settlement Fee | Typically $0* | Typically $0* |
| Ongoing Fees | Typically $0* | Typically $0* |
| Lender's Legal Fee | ~$490* | Typically $0* |
| Valuation Fee | ~$220 or at cost* | ~$220 or at cost* |
| Rate Lock Fee (optional) | ~$350* | ~$350* |
| Discharge Fee | ~$300* | |
💡 Refinance Advantage: Legal advice requirement may be waived for refinances where prior independent legal advice was obtained — potentially saving you time and legal costs.
*All fees are indicative estimates only and may vary by lender. Contact us for a current fee schedule.
Find out your estimated borrowing power in under 2 minutes — powered by real lender criteria from our panel of 30+ lenders.
Expert answers to the most common SMSF lending questions.
The two tiers differ in LVR (deposit size) and maximum loan amount:
SMSF 70: Maximum 70% LVR with loans up to approximately $2,000,000 — typically offering the most competitive variable rate.
SMSF 80: Maximum 80% LVR with loans up to approximately $1,500,000 — slightly higher rate but lower deposit requirement.
The SMSF 70 offers a lower rate and higher maximum loan, but requires a larger deposit (30%). SMSF 80 lets you get into the market with just 20% deposit. Both typically offer similar fixed rate options. Rates vary — speak with our brokers for current pricing.
Book an obligation-free consultation to check your fund's eligibility and explore your lending options. We'll coordinate the entire process — from structure to settlement.
