An SMSF property loan (limited recourse borrowing arrangement, or LRBA) lets your self-managed super fund borrow to buy a residential or commercial property held in a separate bare trust. Lenders typically want a 20–30% deposit from the fund, a fund balance that leaves liquidity after purchase, and rental income plus member contributions that cover repayments. Major banks have largely left this market, so it runs through specialist lenders — which is exactly where a broker earns their keep.
This page is for people researching SMSF property loans and related options such as SMSF investment property loan, SMSF mortgage, SMSF commercial property loan. It explains how this type of finance generally works, who it may suit, the issues that can affect lender approval, common scenarios and the steps involved from initial review through to settlement or funding.
Every application is assessed on its own facts. Property or asset value, income, expenses, existing debts, credit conduct, entity structure and lender policy can all change the outcome. The information below is general and is designed to help you ask better questions before choosing a lender or loan structure.
An SMSF can potentially borrow to acquire an eligible asset through a limited recourse borrowing arrangement, but the legal and superannuation structure is different from an ordinary investment loan. Lenders may require specific trust documents, a holding or bare trust structure, acceptable property characteristics and evidence that the transaction aligns with the fund’s circumstances.
SMSF lenders often require a larger contribution than standard residential lenders and may also expect the fund to retain a minimum level of liquid assets after settlement. Rental income and member contributions can be considered for servicing, but lender assessment methods vary.
A mortgage broker can assist with the credit and lender side of an SMSF property transaction, but cannot replace legal, tax or financial advice. The fund trustees should obtain appropriate independent advice before entering the transaction, particularly around compliance, related-party rules and the fund’s investment strategy.
Broker's Guide
What you need to qualify, what to have ready, where lender policies genuinely differ, and the mistakes we see most often. General information — every application is assessed on its own facts.
Scenario 1
Situation: Fund balance $420k; business currently renting a $700k warehouse.
How we'd approach it: SMSF buys the warehouse with a 30% deposit and leases it back to the business at market rent — rent now builds retirement savings instead of paying a landlord.
Scenario 2
Situation: Loan written in 2017 with a bank that has since exited, rate well above current specialist pricing.
How we'd approach it: Refinance to a current SMSF lender — many funds are unaware this is possible and are overpaying significantly.
Our Approach
We start by understanding the full scenario and what you want the finance to achieve. Depending on the transaction, our work can include:
Real Situations
SMSF finance differs according to property type, fund position and structure. Common transactions include:
Step by Step
Confirm the proposed property and SMSF borrowing objective
Review available SMSF financial information, contributions and liquidity
Estimate borrowing capacity, deposit and post-settlement liquidity
Compare specialist SMSF lender requirements
Coordinate required structure information with the borrower’s legal/accounting advisers
Arrange valuation and prepare the finance application
Satisfy lender trust-document and credit conditions
Complete loan documents after independent advice requirements are met
Coordinate settlement with the legal and conveyancing parties
A loan approval is only one part of the process. Derwent Finance focuses on understanding the objective, comparing lender policy and helping manage the application from initial strategy through to settlement. We assist borrowers across Australia with home loans, refinancing, investment, construction, self-employed, complex, commercial and business finance scenarios.
Where the best outcome is to keep an existing loan or wait until the borrower’s position changes, the recommendation should reflect that rather than moving a loan simply to create a transaction.
FAQs
Potentially, using a compliant limited recourse borrowing structure.
Potentially, where the property and use comply with superannuation rules.
Potentially, subject to lender and superannuation requirements.
SMSF lending often requires more equity than standard residential lending.
Generally no. Obtain specialist financial and legal advice.
They commonly consider contributions, rent, expenses, liabilities and liquidity.
Still have questions? Speak with our team
Ready to understand your options? Book a Strategy Call with Derwent Finance. We can review your current position, what you want to achieve and which lending pathways may be available.
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General information only. Credit assistance is subject to individual circumstances and lender criteria. Interest rates, fees, lender policy, government schemes and eligibility can change without notice. This website does not provide legal, taxation or financial advice. Content last reviewed: August 2026.
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