SMSF Loans
Borrow within your self-managed super fund to invest in property. Our brokers arrange limited recourse borrowing arrangements with specialist lenders, working alongside your financial adviser and accountant.
What is an SMSF loan?
An SMSF loan is a limited recourse borrowing arrangement that allows a self-managed super fund to borrow money to purchase a single asset, typically an investment property. The loan is held in a separate bare trust, and the lender's recourse is limited to that single asset, protecting the rest of the fund's balance if the loan defaults.
SMSF lending involves specific regulatory requirements under superannuation law. Before proceeding, you should seek advice from a licensed financial adviser to confirm the strategy aligns with your fund's investment strategy, retirement goals and risk tolerance. Our brokers work alongside your adviser and accountant to arrange the loan itself, comparing specialist lenders on our panel to find the most competitive rate and structure for your fund.
Speak to our SMSF specialist
SMSF lending is a specialised area that requires a deep understanding of both superannuation law and lending. Our in-house specialist can guide you through the process.
Candice Ballantyne
Senior Finance Broker
Candice is our in-house SMSF lending specialist. She works directly with your financial adviser and accountant to ensure your limited recourse borrowing arrangement is structured correctly and compliantly.
View Candice's profileHow SMSF property loans work
An SMSF loan is structured differently from a standard home loan. Here is what you need to know about the key components.
Bare trust structure
The property is held in a separate bare trust on behalf of the SMSF. The fund holds a beneficial interest in the property, while the trustee of the bare trust holds legal title. This structure is required under superannuation law for limited recourse borrowing.
Limited recourse
The lender's recourse is limited to the property held in the bare trust. If the fund defaults, the lender cannot pursue the fund's other assets. This protects the broader superannuation balance but means interest rates are typically higher than standard home loans.
Compliance requirements
Your fund must have a compliant trust deed, an investment strategy that allows for borrowing, and sufficient cash flow to service the loan. Your financial adviser and accountant confirm compliance, while your broker arranges the finance.
Deposit and serviceability
Most SMSF lenders require a deposit of 20 to 30 percent of the property value. The fund must service the loan from its own income, including rental income, member contributions and existing cash holdings. Your broker assesses the fund's capacity before recommending a lender.
Important: SMSF lending involves specific regulatory requirements under the Superannuation Industry (Supervision) Act. Borrowers should seek advice from a licensed financial adviser before proceeding. A financial adviser will confirm the strategy suits your fund's investment strategy, retirement goals and risk tolerance. Your broker at Gateway Finance works alongside your adviser and accountant to arrange the loan itself.
How it Works
We want to help you achieve your finance needs and get you in your new asset. Here's the process on how we get your loan approved quickly.
Initial discovery call
Chat with us to discuss your specific financial goals and dreams.
Research, Planning & Comparison
We work hard to present to you the best solution, lender and interest rate based off our initial discovery call.
Submit your application
We will help you complete all the necessary paperwork and requirements with your chosen lender to get your application sorted.
Ongoing Support
We will monitor your application and keep in touch along the way. We work behind the scenes to make sure everything is as smooth for you as possible.
SMSF loan FAQs
Answers to the questions we are asked most often about borrowing within an SMSF.
Can I use my super to buy an investment property?
Yes, a self-managed super fund can borrow to purchase property under a limited recourse borrowing arrangement. The loan is held in a bare trust, with the property as security. The fund must have a compliant trust deed, an investment strategy and sufficient cash flow to service the loan. Your broker can explain the structure and refer you to a licensed financial adviser.
What is a limited recourse borrowing arrangement?
A limited recourse borrowing arrangement, or LRBA, is the specific structure that allows an SMSF to borrow money to purchase a single asset, usually property. The lender's recourse is limited to the asset held in the bare trust, protecting the rest of the fund's assets. This structure must comply with superannuation law and is subject to strict rules.
How much can my SMSF borrow?
Most SMSF lenders allow borrowing up to 70 to 80 percent of the property value, meaning your fund needs a deposit of 20 to 30 percent. The fund must demonstrate it can service the loan from its own income, such as rental income, contributions and existing cash. Your broker can assess your fund's position and identify suitable lenders.
Do I need a financial adviser before getting an SMSF loan?
Yes, SMSF lending involves specific regulatory requirements and you should seek advice from a licensed financial adviser before proceeding. A financial adviser will confirm the strategy suits your fund's investment strategy, retirement goals and risk tolerance. Your broker works alongside your adviser to arrange the loan itself.
What types of property can an SMSF purchase?
An SMSF can purchase residential or commercial property, but it must meet the sole purpose test of providing retirement benefits to members. The property generally cannot be purchased from or lived in by a related party, though commercial property used by a related business may be permitted. Your broker and adviser can confirm eligibility.
How long does an SMSF loan take to approve?
SMSF loan approval typically takes four to eight weeks, longer than a standard home loan, because the lender must review the trust deed, investment strategy, bare trust arrangements and fund financials. Your broker manages the process, coordinates with your adviser and accountant, and keeps everything moving toward settlement.
Ready to invest through your SMSF?
Book a free consultation with our SMSF specialist today. We'll compare specialist lenders and work alongside your adviser and accountant.