SMSF Property Loan Calculator
Estimate your borrowing power, repayments and SMSF liquidity — built around the property lending rules that actually apply today.
Law change: new rules for SMSF property borrowing
Since 10 August 2026, SMSFs can no longer enter new Limited Recourse Borrowing Arrangements (LRBAs) to purchase residential property. New SMSF borrowing is now limited to business real property — commercial, industrial, retail and qualifying rural property. Arrangements established before 10 August 2026 are grandfathered and can continue, including refinancing.
Treasury Laws Amendment (Tax Reform No. 1) Act 2026 · SIS Act 1993 s67A
- New LRBAs limited to business real property. Since 10 August 2026, new arrangements can only fund commercial, industrial, retail or qualifying rural property. Existing residential SMSF loans are grandfathered and can still be refinanced.
- Sole purpose test. The property must be held solely to provide retirement benefits to members — it can't be lived in by a member or any related party.
- Single acquirable asset. Under SIS Act s67A, one LRBA can only fund one asset (or a set of identical assets, such as one parcel of identical shares).
- No improvement while geared. Borrowed money can pay for repairs and maintenance, but not for work that changes the fundamental nature of the asset while the loan is in place.
- Related-party leasing. Business real property can be leased to a member's own business, but only at arm's-length, market-rate rent under a formal lease.
- Bare/custodian trust required. The asset is held on trust for the SMSF until the loan is repaid; most lenders require a corporate trustee for both the SMSF and the custodian trust.
- Limited recourse. If the loan defaults, the lender's recourse is limited to the property itself — not the fund's other assets.
Sources: SIS Act 1993 s67A · Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (residential LRBA restriction effective 10 August 2026) · ATO guidance on limited recourse borrowing arrangements.
This calculator provides general information only and does not take into account your objectives, financial situation, SMSF trust deed or investment strategy. It is not personal financial, credit, tax or legal advice and must not be relied on as a substitute for advice from a licensed financial adviser, SMSF specialist and accountant. Results are estimates based on the figures entered and typical lender parameters as at August 2026 — actual loan amounts, rates, fees, government charges and liquidity requirements vary by lender and are subject to formal credit assessment. Loan and Own Mortgages Pty Ltd ABN 50 677 151 923 is a Credit Representative (Number 562355) of Australian Credit Licence Number 384704, and a member of the FBAA (M-357731).
Mohit Gupta
(Principal Broker)
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© Copyright 2026. All Rights Reserved. Loan and Own Mortgages Pty Ltd ABN 50 677 151 923 under
Credit Representative Number 562355 of Australian Credit Licence Number 384704.
Member of the FBAA M-357731 of Australia