SMSF Loans Australia

In some cases, yes. From 10 August 2026, a limited recourse borrowing arrangement can only be used by an SMSF to acquire business real property. Residential property can still be bought by an SMSF without borrowing, and arrangements entered into before that date are generally unaffected. Every situation is different, so speak with your accountant or financial adviser first. PFGA can then explain the lending side.

It’s a term from super law. In general, it means property used wholly and exclusively in carrying on a business, such as offices and warehouses. Property that combines business and private use, or vacant property with no business purpose, may not qualify. Whether a property qualifies must be assessed individually, so your accountant or solicitor should confirm this before you proceed.

Your SMSF can still buy residential property with its own cash, if it fits your fund’s investment strategy and super law. What has changed is borrowing. New borrowing for standard residential investment property is no longer permitted under an LRBA. Your adviser can help you decide whether a cash purchase is suitable.

Existing arrangements are generally protected. A binding contract exchanged before 10 August 2026 also preserves the earlier rules, even if settlement happens later. Refinancing an existing LRBA entered into before that date does not trigger the new requirement. Details matter here, so confirm your situation with your adviser. PFGA can compare lenders if you’d like to review your current loan.

A limited recourse borrowing arrangement (LRBA) is the structure an SMSF must use to borrow. The property is held in a separate bare trust, also called a custodian or holding trust, and if the loan defaults, the lender’s recourse is limited to that asset. The borrowing must relate to a single asset, and a fund can’t borrow to improve it. Your solicitor or accountant usually arranges the bare trust, and we coordinate with them and the lender.

It’s usually more than for a standard loan. Lenders commonly ask for 20% to 30% for residential and 30% to 40% for commercial SMSF loans, with lower maximum LVRs for commercial property. Lenders also look at whether your fund has enough cash left over after settlement. Requirements vary between lenders, and rates are often higher than standard investment loans, so we compare options for you.

Lenders typically ask for a certified copy of your SMSF trust deed and custodian (bare) trust deed, SMSF bank statements and financial statements, and a copy of the contract of sale. Your lender may ask for more. We’ll give you a clear checklist and coordinate with your accountant to keep things moving.

Yes. Borrowing within super has legal, tax and retirement implications, and you should get personal advice before proceeding. PFGA is a mortgage broker. We explain loan options and compare lenders, but we don’t provide SMSF, investment or tax advice. We’re happy to work with your advisers throughout.

PFGA explains how we’re paid, and any fees that may apply, before you proceed, so there are no surprises. For most loans, we’re paid by the lender after your loan settles. To talk through your situation, call us on 1800 574 055 or book an appointment.