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SMSF lending

Lending through super, arranged the way the rules require.

Updated

A self-managed super fund borrows through a limited recourse borrowing arrangement: one asset, held in a separate trust, with the lender’s recourse limited to that asset. Since 10 August 2026 a new arrangement over real property is limited to business real property. Fewer lenders offer it, the deposit is usually larger, and the fund’s liquidity is assessed as closely as the rent. We arrange the lending. Whether you should use super to buy property is advice for your accountant or financial adviser, not us.

Start an SMSF lending review How we assess

Short assessment to begin. No documents at this stage, no credit check. We do not advise on whether to establish an SMSF or invest through super.

How a fund holds property inside super: the fund, one arrangement, one property The fund at the top with member balances and contributions. Below it one limited recourse borrowing arrangement: a holding trust holding a single business premises, with the lender’s recourse stopping at that property. Below that, rent coming in from the business as tenant, the loan reducing, and the asset staying inside super. THE FUND TODAY Member balances and contributions, invested inside super the fund’s own money pays the deposit and the costs ONE ARRANGEMENT, ONE PROPERTY Holding trust holds the title Business premises the lender’s recourse stops at that property, not the rest of the fund Deed permits itStrategy covers itRent at marketLiquidity kept WHAT IT BUILDS Rent infrom the business tenantLoan downover the termAsset heldinside the fund a further property is a separate arrangement, not an addition to this one How a fund holds property inside super: the fund, one arrangement, one property THE FUND TODAY Member balances and contributions ONE ARRANGEMENT Holding trust Premises Deed permits itStrategy covers itRent at marketLiquidity kept WHAT IT BUILDS Rent infrom the tenantLoan downover the termAsset heldin the fund a further property is a separate arrangement
Fund, holding trust and one property, with rent from the business coming back into the fund
2010Established
$1B+Lending settled
50+Lenders through our lender and aggregator network
PremiumBroker status with leading banks
5.0From 196 Google reviews

At a glance

Who it is for
Trustees of a self-managed super fund borrowing to acquire eligible business real property, and trustees reviewing or refinancing an arrangement already in place
The structure
A limited recourse borrowing arrangement: the property is held in a separate holding trust and the lender’s recourse is limited to that property
What lenders look at
Fund balance and liquidity after settlement, member contributions, rent, the fund’s trust deed and the holding trust
What we do not do
Advise on whether to establish an SMSF, invest through super, or on the tax and superannuation rules
Credit assistance
Dayan Kasturiratna, Australian Credit Representative 394747, under Australian Finance Group Ltd, ACL 389087
What we arrange

SMSF property lending after the 2026 change, assessed on the fund, not just the property.

Business premises leased to your own business, commercial property that meets the business real property test, and existing arrangements that need review or refinance. Different lenders, different rules, one question first: can the fund carry the loan after settlement, with rent, contributions and cash reserves counted the way the lender counts them.

A trades business operating from its own factory unit with a work vehicle out front01

Business premises leased to your business

The fund buys the premises and leases them to a related business at a market rent, which the superannuation rules allow for business real property in defined circumstances. Assessed on the business’s ability to pay the rent and the fund’s position, with the lease and the valuation both at arm’s length.

Begin A small strata office and warehouse unit in an outer Melbourne industrial estate02

Commercial investment property

Offices, industrial units and retail leased to unrelated tenants, where the property is used wholly and exclusively in one or more businesses. Actual use decides that, not zoning or a listing description. Assessed on lease terms, tenant quality and valuation alongside the fund’s own position.

Begin A desk with loan documents and a laptop in a small Melbourne office03

An arrangement already in place

An arrangement entered before 10 August 2026, a refinance of one, or a contract exchanged before that date and not yet settled. These are treated separately from new borrowing and are reviewed one at a time with the fund’s own advisers.

Begin

SMSF lending is offered by fewer lenders than standard property lending, and each has its own minimum fund balance, deposit and liquidity requirements. We confirm the position with the lender before anything is lodged, and no approval is given in advance.

How we assess

Fund, structure and liquidity.

Three things decide an SMSF loan: whether the fund and the holding trust are set up in a way the lender will accept, whether the fund can service the loan from rent and contributions, and whether enough cash is left in the fund after settlement to meet the lender’s liquidity requirement and the fund’s own obligations.

Trust deed, bank statements and a calculator on an accountant’s desk

The fund and the structure: what is assessed

  1. The fund’s trust deed permits borrowing, and the holding (bare) trust is set up correctly for the property
  2. Corporate trustee or individual trustees, and what the lender requires
  3. Fund balance now and after settlement, and the lender’s minimum balance and liquidity requirements
  4. Member contributions: history, consistency and what the lender will count
  5. Whether the property is a single acquirable asset and the purchase fits the superannuation rules
  6. Advice in place: the fund’s adviser and accountant have confirmed the strategy before the lending is arranged
Front of a small commercial and industrial premises in a Melbourne business park

The property and the loan: what is assessed

  1. Loan to value ratio against the lender’s SMSF limits, which are usually lower than standard lending
  2. Rent: actual or a valuer’s market rent, and how much of it the lender counts
  3. Serviceability from rent and contributions at the assessed rate and after a rate rise
  4. For business real property: the lease to the related business at a market rent, and the business’s ability to pay it
  5. Personal guarantees from members, which most lenders require, and their effect on the members’ own positions
  6. Costs: establishment, legal review of the structure, valuation and ongoing fees, set out before anything is lodged
Illustrative scenarios

Three funds, assessed the way a lender would.

Hypothetical positions with rounded figures, built to show how the assessment works. None is a client result, approval, quote or promise.

Illustrative scenario

A fund with an existing loan, and a rule change in the background

Position
The fund holds a property under an existing limited recourse borrowing arrangement
What prompted the question
Reported changes to what new SMSF borrowing can be used for
What the trustees want to know
Whether a refinance is possible, and on what terms
What the fund’s advisers confirm
When the arrangement was entered, and what the rules in force say applies to it
What we confirm with lenders
Which lenders will refinance an existing arrangement, and what evidence they ask for
What we do not do
Give the legal answer, or assume one. Nothing is lodged before the fund’s advisers have put their position in writing
Outcome considered
A documented position first, then the lending

This area changed recently and the detail of how a particular arrangement is treated is a question for the fund’s own advisers, not for a broker and not for a website. So this page does not state what the rules say. It states the order of work: the advisers settle the fund’s position in writing, and we arrange the lending once that is settled. Where a fund is buying premises its own business occupies, that is business real property, which is the kind of purchase the reported change keeps rather than removes.

Illustrative photograph of loan documents and a laptop on a desk in a small Melbourne office Illustrative image Illustrative scenario

A fund with an existing loan, and a rule change in the background

Existing arrangements are treated separately.

Illustrative scenario

Premises bought by the fund and leased to the members’ business

Fund balance
~$900,000
Premises purchase price
~$1.1m
Deposit from the fund
~35%
Tenant
The members’ trading business
Lease
Market rent, written, arm’s length
Business rent cover
Assessed on the business’s accounts
Guarantees
Members personally
Outcome considered
Commercial lender, commercial terms

Business real property leased to a related party is permitted in defined circumstances under the superannuation rules. The lease, the rent and the valuation must all be at arm’s length, and the fund’s advisers confirm the strategy before we arrange the lending.

Illustrative photograph of a small factory unit with an open roller door Illustrative image Illustrative scenario

Premises bought by the fund and leased to the members’ business

Market rent, at arm’s length, both ways.

Illustrative scenario

A fund that would be left with too little cash after settlement

Fund balance
~$520,000, mostly cash and shares
Premises
Business real property, ~$600,000
Deposit and costs from the fund
~40%, about $240,000
Lender's liquidity rule
Cash or listed assets after settlement of at least 10% of the property value, about $60,000
Position after settlement
About $280,000 remains, which clears that rule but leaves the fund thin for repayments, pensions and a vacancy
Option A
A smaller premises, or a larger deposit from contributions within the caps
Option B
Members contribute over time, purchase deferred
Outcome considered
A purchase the fund can carry, not the one first proposed

The 10% figure is one lender’s policy, not the law, and clearing it is not the same as being comfortable. A fund still has to meet repayments, pay any pensions and carry a vacancy without selling the property. Whether contributions can rebuild the buffer, and by when, is a question for the fund’s advisers before a lender is approached.

Illustrative photograph of a small commercial unit with a glass shopfront in a suburban business park Illustrative image Illustrative scenario

A fund that would be left with too little cash after settlement

The liquidity rule, checked first.

Illustrative scenarios. Figures are hypothetical and rounded. These are not client results, approvals, quotes or promises. SMSF lending is subject to the lender’s policy, the fund’s trust deed, the superannuation rules and advice from the fund’s own advisers. Finance remains subject to lender assessment, valuation, documentation and applicable law.

How it works

Four steps, and nothing lodged until you agree.

01

Tell us about the fund and the property

A short assessment: whether the fund exists or is being established, what it is buying, the fund balance and deposit bands, and timing. No documents, no credit check.

02

We check the structure and map capacity

With your agreement, we gather what the lender will need, confirm the trust deed and holding trust arrangements with your advisers, and work out serviceability and post-settlement liquidity, before anyone else sees it.

03

We take it to the right lender

Chosen from the lenders that offer SMSF loans, for the property type and the fund’s position, across our lender and aggregator network. Costs and conditions set out in writing.

04

You decide, then we lodge

Nothing is lodged until the trustees have seen the terms and agreed, and the fund’s advisers have confirmed the strategy. If the fund is not ready to borrow, we say so.

In most cases we are paid commission by the lender on settlement, and our Credit Guide sets out how that works and what you are entitled to know. Where a fee would apply to any part of the work, we tell you in writing first.

What we will ask for at step two

  • The fund’s trust deed and the holding trust deed, or your adviser’s confirmation they are being prepared
  • Fund financial statements and the latest member statements
  • Contribution history for each member
  • The contract of sale or the property details, and the lease where there is a tenant
  • For business real property: the business’s financial statements and the proposed lease
  • Confirmation that the fund’s accountant or adviser has advised on the strategy

What we will not do

  • Advise on whether to establish an SMSF or invest through super
  • Quote a capacity figure as if it were an approval
  • Arrange the lending before the fund’s advisers have confirmed the strategy
  • Present any SMSF loan as unregulated or outside the superannuation rules because it is an investment
Who you will deal with

One person, from the first conversation.

SMSF lending files sit with Dayan Kasturiratna, who provides the credit assistance on every file.

Dayan Kasturiratna, Founder and Director of Opulent Finance, seated in a Melbourne boardroom

Dayan Kasturiratna

FIPA FFA CTA

Founder and Director. Chartered tax adviser and finance specialist. Australian Credit Representative 394747, under Australian Finance Group Ltd, ACL 389087.

Established Opulent Finance in 2010. Lending through super is where the structure is the whole job: the deed, the holding trust, the liquidity after settlement and the guarantees decide the outcome long before the rent does. The work is making sure each is right before the lender sees it.

Mobile0423 272 600 Office1300 001 551
dayan@opulentfinance.com.au
WINNER · 2026Best Solo OperatorAFG Broker AwardsWINNER · 2025 · VIC/TASBest Finance Brokerage (Office)The Adviser Better Business AwardsOpulent Finance
Premium Broker statusWith leading banks
Established 2010Melbourne finance brokers
Burwood, Victoria22 Harker Street

Credit assistance is provided by Dayan Kasturiratna, Australian Credit Representative 394747, authorised under Australian Finance Group Ltd, Australian Credit Licence 389087.

Google reviews

What clients say about working with us.

5.0196 Google reviews
Dayan and the team were approachable and knowledgeable, and always willing to help.Bich Thuy Nguyen on Google
Both were warm and friendly and always available.Melanie Georgiou on Google
I highly recommend Dayan and Lihini for their honest, professional, and reliable service.Varuni Wickramasinghe on Google

Where these reviews come from, and the rest of what clients say

Questions

Before you start.

Can a self-managed super fund borrow to buy property?

Yes, under a limited recourse borrowing arrangement. The fund borrows to buy a single asset, which is held in a separate holding trust until the loan is repaid, and the lender’s recourse is limited to that asset. The property must be acquired and used in line with the superannuation rules, and the fund’s trust deed must permit borrowing. We arrange the lending; whether the fund should borrow is advice for your accountant or financial adviser.

How much deposit does an SMSF loan need?

More than a standard loan. Lenders set lower maximum loan to value ratios for SMSF lending, and commercial and business premises sit lower again than the residential lending most people have seen. They also require cash to remain in the fund after settlement. The exact figures depend on the lender, the property and the fund, and we confirm them before anything is lodged.

Can I live in, or use, a property my SMSF buys?

No, and since 10 August 2026 a fund cannot borrow to acquire residential property at all. New borrowing over real property is limited to business real property. Where the fund owns business premises, it can lease them to a related business at a market rent, in the circumstances the superannuation rules allow. Your adviser confirms whether your situation qualifies.

Does the fund need a corporate trustee?

Many lenders require a corporate trustee for the fund, the holding trust or both, and some will not lend to funds with individual trustees. Whether your fund should have a corporate trustee is advice for your accountant. If a change is needed, it is usually done before the lending is arranged.

Does an enquiry affect my credit score?

No. The assessment and our review involve no credit enquiry. A credit check only occurs if the trustees decide to proceed with an application, and we tell you before it happens.

Can the fund renovate or develop the property?

Repairs and maintenance are permitted. Improvements that change the character of the asset while the loan is in place are restricted, and borrowed money cannot be used for them. Development is generally not possible under a limited recourse borrowing arrangement. This is a superannuation-law question first and a lending question second; your adviser confirms what is permitted.

Further reading

Articles on SMSF lending.

Longer reads from our archive on lending through super, written for trustees rather than lenders.

ArticleLending through super funds: SMSF property loansRead ArticleSMSF property loans: what you need to knowRead ArticleSMSF property loans: what no one tells youRead ArticleSMSF property investing beyond the basicsRead ArticleLending through super funds made simpleRead
Ready when you are

Tell us about the fund and the property. We will tell you whether it can carry the loan.

Short assessment. No documents at this stage, no credit check. Contact at the time and by the method you choose.

Start an SMSF lending review How we assess

The rules, the related service and the questions trustees ask.

GuideGuide to SMSF property loansLRBA rules, the bare trust, deposit and liquidity requirements and business premises.ServiceInvestment property loansInvestment lending held personally or through other entities, from a first investment to a portfolio.FAQFrequently asked questionsShort answers on borrowing, refinancing and specialist lending.