Fund structure
The SMSF, trustee and proposed borrowing arrangement need to satisfy applicable requirements.
SMSF Property Finance
The right SMSF property loan begins with the right structure.
Finance guidance for eligible residential and commercial property purchases through a Self-Managed Super Fund, working alongside your professional advisers.
Residential and commercialLender requirements explainedAdviser collaboration
Why SMSF lending is different
The fund, property and borrowing arrangement are assessed together.
An SMSF may be able to borrow for certain property purchases through a Limited Recourse Borrowing Arrangement, subject to superannuation law, the fund’s circumstances and lender requirements.
Deposit and costs
Lenders can require a different contribution and cost allowance from standard property lending.
Liquidity
The fund’s position after settlement and its capacity to retain appropriate liquidity may be considered.
Property eligibility
The property type, use, location and characteristics can affect lender appetite and assessment.
The lending assessment
Understand lender requirements before committing to a property.
SMSF loans can differ substantially from standard residential or commercial finance. An early lending review can help identify policy requirements and documentation needs.
LNO Mortgages assesses the lending component and does not provide financial, tax or legal advice. Appropriate advice should be obtained from qualified advisers before entering an SMSF property transaction.
✓Proposed propertyProperty type, intended use, purchase price, location and lender acceptability.
✓Fund contributionAvailable deposit, acquisition costs and the fund’s proposed contribution.
✓Fund liquidityCash and liquid assets expected to remain in the fund after settlement.
✓Servicing positionContributions, rental income, expenses and other information relevant to lender assessment.
✓Fund documentationTrust deed, financials, returns, statements and other supporting evidence requested.
✓Borrowing structureRelevant trustee and holding arrangements, subject to professional legal advice.
How LNO Mortgages helps
Coordinate the lending pathway with the wider transaction.
Our role is to compare appropriate SMSF lending options and explain finance requirements while working alongside your accountant, financial adviser and solicitor where required.
Discuss the proposal
Understand the fund, proposed property, contribution, timing and borrowing objective.
Review lending readiness
Assess the available documents, servicing, liquidity and relevant lender criteria.
Compare suitable lenders
Consider lender appetite, policy, loan terms, costs and documentation requirements.
Coordinate the application
Progress the agreed finance strategy alongside the fund’s professional advisers.
Property finance pathways
Residential and commercial SMSF property lending.
Property type and intended use affect both the applicable rules and lender requirements.
Residential
SMSF Residential Property
Finance may be available for an eligible residential investment property acquired by the fund, subject to the structure, applicable law and lender assessment.
- Property and contract details
- Deposit, costs and liquidity
- Rental income and servicing evidence
- Fund and trustee documentation
Commercial
SMSF Commercial Property
Finance may be available for an eligible commercial property. Business real property connected with a member’s business may be possible in certain circumstances, subject to the applicable rules and advice.
- Commercial property characteristics
- Lease and rental details where relevant
- Fund contribution and servicing
- Lender-specific commercial policy
Professional advice is essential.
SMSF borrowing involves superannuation, trust, tax, legal and investment considerations. Obtain appropriate advice from qualified professionals before establishing or changing a structure, signing a contract or entering a transaction.
Start an SMSF lending enquiry
Tell us about the fund and proposed property.
Share a few initial details. The LNO Mortgages team will contact you to discuss the lending information that may be needed for a preliminary review.
Phone0413 219 624
Service areaCastle Hill, the Hills District, Greater Sydney and Australia-wide
SMSF lending FAQs
Useful lending answers before you proceed.
Eligibility depends on the fund, transaction, applicable rules and lender assessment. Obtain professional advice for the wider SMSF strategy.
Can an SMSF borrow to buy property?
An SMSF may be able to borrow to acquire certain property through a Limited Recourse Borrowing Arrangement, subject to superannuation law, the fund’s circumstances, the transaction structure and lender requirements.
What is a Limited Recourse Borrowing Arrangement?
It is a specific borrowing arrangement used for eligible SMSF acquisitions. The legal structure and documentation are important and should be established with advice from appropriately qualified legal, accounting and financial professionals.
How much deposit does an SMSF need?
The required fund contribution varies by lender, property type, valuation, loan structure and the fund’s position. Acquisition costs and the liquidity expected to remain after settlement also need to be considered.
How do lenders assess SMSF loan servicing?
Assessment may consider member contributions, rental income, fund expenses, existing commitments, liquidity and other supporting information. Calculation methods and acceptable evidence vary between lenders.
Can an SMSF finance commercial property?
Finance may be available for eligible commercial property. Where business real property connected with a member’s business is involved, the transaction remains subject to applicable superannuation rules, lender policy and professional advice.
Who should be involved in an SMSF property transaction?
Depending on the transaction, the professional team may include an accountant, licensed financial adviser, solicitor or conveyancer and mortgage broker. LNO Mortgages handles the lending component and works alongside the relevant advisers where required.
Get the lending requirements clear before the transaction moves forward.
Book a confidential, no-obligation discussion with Mohit Gupta about the finance component of your proposed SMSF property purchase.
