Property Finance ForSelf-Managed Super Funds
SMSF Lending For
Property Investment
Using an SMSF to invest in property requires careful
consideration of the fund's structure, investment
strategy, borrowing arrangements, and regulatory
obligations. Where borrowing is permitted, an SMSF
loan can provide a pathway to acquiring eligible
property through a limited recourse borrowing
arrangement. Efficient Capital Solutions helps clients
navigate the lending side of these arrangements by
comparing suitable options across its lender network.
Our SMSF Lending Process
Understand The Property &
Funding Objective
We start with the proposed
property purchase and the
lending requirements behind it.
Review The SMSF Lending
Structure
We consider the proposed
borrowing arrangement and the
information required by
potential lenders.
Compare Suitable SMSF
Loan Options
We compare available lending
options across our lender
network based on the circumstances of the application.
Where SMSF Lending May Fit
Commercial Property
Explore lending options for eligible commercial property
investments held through an SMSF.
Investment Property
Consider finance for eligible property investments where
the proposed arrangement meets applicable SMSF
requirements.
Business Premises
Explore funding pathways where an SMSF acquires eligible
business premises and the arrangement satisfies relevant
rules.
Existing SMSF Arrangements
Review lending requirements when considering changes to
an existing SMSF property strategy or borrowing
arrangement.
Understanding SMSF Property Lending
SMSF property lending is subject to rules that differ from conventional
property finance. Borrowing to acquire property through an SMSF
generally involves a limited recourse borrowing arrangement, under
which the borrowed funds are used to acquire a single acquirable asset
held in a separate trust. The arrangement must comply with
superannuation law and the requirements applicable to the fund.
For that reason, SMSF lending should not be approached as simply
another type of property loan. The property, fund structure, borrowing
arrangement, and investment strategy all need to be considered within
the appropriate regulatory framework.
Looking Beyond SMSF Loan Rates
SMSF loan rates are one consideration when comparing finance, but
the broader lending structure matters too. Loan terms, lender
requirements, fees, repayment arrangements, and the characteristics of
the proposed property can all influence the suitability of an option.
An experienced finance broker can help compare SMSF lending
options across lenders and coordinate the finance process. Where
financial, tax, superannuation, or legal advice is required, those
considerations should be addressed with the appropriately qualified
professional. ASIC and Moneysmart recommend using authorised
professionals for SMSF financial advice.
Common Questions About SMSF Loans
What is an SMSF loan?
An SMSF loan is a specialised borrowing arrangement (LRBA) that allows a Self-Managed Super Fund to purchase investment property using borrowed funds combined with fund capital.
Finance For Your
SMSF Property Strategy
SMSF property lending involves more than finding a loan.
The finance arrangement needs to sit within the broader
requirements of the fund and the proposed investment. Efficient
Capital Solutions helps clients compare SMSF loans, assess
available lending pathways, and coordinate the finance process
with the relevant professionals involved.
