Welcome to SMSF Mortgages
What is an SMSF?
How Much Do I Need to Buy a Property in My SMSF?
How Do SMSF Loans Work?
A Self-Managed Super Fund (SMSF) gives you control over how your super is invested, including the ability to explore various loan options for purchasing property through your fund, such as home loans.
How Do SMSF Loans Work?
How Much Do I Need to Buy a Property in My SMSF?
How Do SMSF Loans Work?
An SMSF loan, also known as a limited recourse borrowing arrangement, allows your fund to explore various loan options to borrow money for purchasing residential or commercial property while keeping your personal assets protected.
How Much Do I Need to Buy a Property in My SMSF?
How Much Do I Need to Buy a Property in My SMSF?
How Much Do I Need to Buy a Property in My SMSF?
Most lenders require a 20–30% deposit within your super fund in addition to extra funds for costs like stamp duty and legal fees. We’ll assist you in calculating what’s needed to explore your home loan options.
What is an SMSF?
The Basics
A Self-Managed Super Fund (SMSF) is a private superannuation fund that gives you direct control over how your retirement savings are invested. Unlike traditional industry or retail super funds, you — as the trustee — make all the decisions about where and how your money is invested, including the option to buy property and explore various home loans.
An SMSF can have up to six members, typically family or business partners, who combine their super balances to build a larger investment pool. The fund’s assets are held in a trust structure and must comply with strict ATO rules around purpose, investment strategy, and reporting.
For many Australians, an SMSF offers flexibility, tax efficiency, and the opportunity to grow wealth through direct property ownership — residential, commercial, or industrial. Additionally, it provides various loan options for members looking to invest further.
💡 Tip: Our expert team works with your accountant and financial adviser to ensure your fund is correctly structured before you borrow.
How Do SMSF Loans Work?
SMSF Loans Explained
An SMSF loan, also known as a Limited Recourse Borrowing Arrangement (LRBA), enables your fund to secure home loans to purchase property while safeguarding your other super assets from risk.
Here’s how the process works:
Your SMSF establishes a special holding trust (referred to as a bare trust) to hold the property.
The loan is issued to the trust, rather than directly to the SMSF trustees.
Over time, rental income and super contributions contribute to repaying the loan.
Once the loan is fully repaid, legal ownership is transferred entirely to the SMSF.
Lenders generally require the SMSF to maintain sufficient cash flow, a solid investment strategy, and a clear exit plan in case of retirement or changes in membership.
Our SMSF lending experts evaluate various loan options across an extensive range of lenders to find a structure that ensures compliance and maximizes your borrowing capacity.
How Much Do I Need to Buy a Property in My SMSF?
Deposit Requirements and Other Costs
While every fund is different, most lenders require your SMSF to have:
A 20–30% deposit for residential property or commercial property held within the fund, depending upon property value and loan size.
Extra funds for stamp duty, legal costs, and ongoing liquidity requirements (usually 10% of the loan value).
Stable contributions and rental income to cover repayments.
The property must also meet ATO rules — it can’t be lived in by fund members or related parties, and any commercial lease must be at arm’s length market rates.
Our SMSF finance team will assess your fund’s position, calculate your borrowing capacity, and identify which loan options can help you achieve your property goal — whether you’re purchasing a warehouse, office, or investment unit.
📊 Book a free consultation to find out exactly how much you can borrow through your super for home loans.
Explore Types of Properties in Your SMSF
Residential Properties
Acquiring residential property through your SMSF can be an effective part of a long-term investment strategy, especially when considering various home loans and loan options available.
Commercial Properties
Using your SMSF to buy your business premises or lease it to a third-party tenant at market rates can be an effective strategy, especially when exploring various home loans and loan options.
SMSF Residential Property Loans
Build Your Property Portfolio Within Your Super
An SMSF residential property loan allows you to use your self-managed super fund to invest in residential real estate—such as houses, units, or townhouses—thereby growing your retirement wealth through property. This approach is a powerful way to take control of your super while creating a long-term, income-producing asset.
At SMSF Mortgages, we assist trustees in accessing tailored home loan options through our panel of banks and specialist lenders. Our team ensures that every step of your loan—from structure to settlement—aligns with ATO and superannuation regulations.
How It Works
Your SMSF purchases the property using a limited recourse borrowing arrangement (LRBA), meaning the lender’s security is limited to the property itself, thus protecting your other super assets.
The rental income from the property, along with employer and member contributions, is then utilized to service the loan.
Residential SMSF loans typically allow borrowing up to 70–80% of the property’s value, with both fixed and variable rate options available. All income, expenses, and repayments must flow through your SMSF’s bank account for compliance purposes.
What You Can Buy
- Established residential investment properties
- New builds or off-the-plan (subject to lender conditions)
- Dual-occupancy or townhouse developments
(Note: the property can’t be lived in or rented to members or related parties.)
SMSF Commercial Property Loans
Own Your Business Premises Through Your Super
An SMSF commercial property loan allows your super fund to purchase business, retail, or industrial property — giving you the opportunity to own the premises your business operates from or to rent it out to an arm’s-length tenant. This strategy is one of the most effective ways to combine property ownership with superannuation growth while exploring various loan options.
At SMSF Mortgages, we specialize in structuring compliant SMSF commercial loans, comparing banks and specialist non-bank lenders to identify the best product and terms for your fund, much like how one would assess different home loans for personal use.
Why Business Owners Love This Strategy
Purchasing your business premises through your SMSF allows you to:
- Pay rent directly to your super fund instead of a landlord
- Build wealth within a tax-advantaged structure
- Secure your long-term business location
- Diversify your retirement assets through property
It's important to note that rent must always be at market rates and paid on time to ensure the transaction remains at arm’s length for ATO compliance.
Commercial SMSF Loan Features
- Borrow up to 60–75% of the property’s value
- Flexible loan terms, with both fixed and variable rate options
- Suitable for offices, warehouses, retail, or industrial assets
- Structured as a limited recourse borrowing arrangement (LRBA)
Our Partner for SMSF Loans
Expert Mortgage Advice
Expert Mortgage Advice
Expert Mortgage Advice
We partner with Natloans - one of Australia’s most trusted mortgage broking and finance broking teams, who have experts in SMSF mortgages.
The team at Natloans provide expert guidance for all your SMSF home loan, and SMSF commercial loan needs.
Why Choose Natloans?
Expert Mortgage Advice
Expert Mortgage Advice
The team at Natloans are experts at SMSF lending and have and experience in both SMSF home loans and SMSF loans for commercial properties.
Our dedicated team is committed to guiding you through the complexities of SMSF lending.
Flexible Solutions
Expert Mortgage Advice
Flexible Solutions
We understand that every client is unique, which is why our team of trusted mortgage brokers provide tailored SMSF loan solutions to meet your needs.
Our personalised approach ensures that you explore various loan options to find the perfect mortgage product for your situation.
Get your FREE SMSF Property Loans Guide
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