Mel A
4 years ago on Google
Sumit helped me get my SMSF loan and made sure I am financially secured after settlement. He was very patient with me as it was an investment purchase under my SMSF. 5 Stars from me. Thank you Sumit.
SMSF loan broker, Sydney
SMSF Loans in Australia: Grow Your Super Through Property
We arrange SMSF loans through specialist lenders. Since 10 August 2026, new SMSF borrowing is limited to business real property: premises used wholly and exclusively in a business. We also refinance existing residential SMSF loans.
- Existing SMSF loans refinanced
- Commercial property through your fund
- We work with your SMSF accountant. $0 broker fees
- 5.0 from 360+ Google reviews
- 2,500+ clients helped
- Credit Rep 446824
Updated November 2026
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SMSF property finance
Why SMSF Trustees Use a Broker for Their LRBA
An SMSF loan, formally a limited recourse borrowing arrangement (LRBA), lets a self-managed super fund borrow to buy an investment property. Since 10 August 2026 a new LRBA can only be used for business real property, so the work a broker does for trustees has changed.
SMSF loans come from a small group of specialist lenders, each with its own rules on the fund, the property and the paperwork. Getting the lender, the structure and the documents right is what keeps the loan approved and the fund compliant. Here is where we help trustees now:
Refinancing an existing SMSF loan
Residential SMSF loans that were in place before 10 August 2026 are grandfathered. If your fixed term is ending or your lender has changed its terms, we compare the lenders still writing SMSF loans and manage the switch.Commercial property through your fund
Business real property is the path that stayed open. Business owners often have the fund buy their premises. Our commercial SMSF lending page covers it in full.Contracts exchanged before the ban
A binding contract exchanged before 10 August 2026 can still settle with an LRBA, including some off the plan purchases. These files need a lender who understands the timing.Working with your accountant and adviser
We arrange the finance. Your SMSF accountant and licensed financial adviser decide whether the fund should hold the property. We work alongside them so the loan, the trust deeds and the investment strategy line up.
Rule change
In force from 10 August 2026What changed for SMSF borrowing on 10 August 2026?
From 10 August 2026, an SMSF can only enter a new limited recourse borrowing arrangement over real property if it is business real property: land and buildings used wholly and exclusively in a business. That rules out houses and units, and any other property that does not meet the test.
The change came in through the Treasury Laws Amendment (Tax Reform No. 1) Act 2026. It targets new borrowing, not ownership: a fund can still own residential property, and loans already in place are not forced to unwind. For a new LRBA, the property has to stay business real property for the whole life of the loan.
Still possible
- Keeping an SMSF loan over residential property that was in place before 10 August 2026
- Refinancing that existing loan over the same property, generally at the existing level of debt
- Settling a binding contract exchanged before 10 August 2026 with an LRBA
- A new LRBA to buy business real property, such as commercial premises
- Buying residential property with the fund’s own money, with no loan
No longer possible
- A new SMSF loan to buy a house, unit, townhouse or other residential property
- Using a refinance to move the loan to a different residential property
- Starting a new LRBA over property that will not stay business real property
Sumit · 1:18
Understanding
What Is an SMSF Loan (Limited Recourse Borrowing Arrangement)?
A limited recourse borrowing arrangement (LRBA) is the only way an SMSF can borrow money to acquire an asset under the Superannuation Industry (Supervision) Act 1993, specifically sections 67A and 67B. It is commonly called an SMSF loan or SMSF property loan. The ATO sets out three structural elements:
Quick answer
How does an SMSF loan work?
The fund borrows to buy one asset. The asset is held in a separate holding trust until the loan is repaid, and if the loan defaults the lender can only claim against that asset, not the fund's other savings.
The bare trust (holding trust)
The property is held in a separate bare trust, also called a holding trust, with the SMSF as beneficiary until the loan is repaid.
Read the detail
The property is not bought directly in the SMSF's name. The bare trust trustee holds legal title on behalf of the SMSF until the loan is fully repaid. The fund is the beneficial owner and receives the rent. At the end of the loan, legal title can move to the SMSF. Whether stamp duty applies to that transfer depends on your state and how the arrangement was set up, so check it with your solicitor at the start.
Limited recourse, the protection clause
If the loan defaults, the lender's claim is limited to the single asset held in the holding trust.
Read the detail
The lender cannot pursue the fund's other assets: cash, shares or other property. This ring-fence is the structural protection that makes SMSF borrowing permissible under super law. Many lenders also ask members for personal guarantees, so read the loan terms with your adviser.
Single acquirable asset
Each LRBA can fund only a single acquirable asset. Borrowed money cannot be used to improve it.
Read the detail
One property, one title, one settlement in most cases. You cannot use one SMSF loan to buy a portfolio. Each property needs its own holding trust, its own loan and its own LRBA. The ATO's guidance (SMSFR 2012/1) also explains that borrowed money cannot be used to improve the asset, and that building on vacant land creates a different asset, which is why construction is so restricted.
Source: ATO, limited recourse borrowing arrangements, and ATO ruling SMSFR 2012/1. General information only: ask your SMSF accountant how the rules apply to your fund.
Benefits
Why SMSF Trustees Invest in Property
Holding property inside your super fund combines the tangibility of direct property with superannuation's tax treatment. These are the reasons trustees give. Whether they apply to your fund is a question for your licensed financial adviser and SMSF accountant, not for a broker.
Tax-effective income and growth
Rent and gains earned inside a complying super fund are taxed at concessional rates, and the treatment can change again in pension phase.
Read the detail
Loan interest, rates, insurance and depreciation are generally deductible to the fund. How much the concessions are worth depends on your fund's phase, your balance and the rules in force when you sell, and the rules do change. Ask your SMSF accountant to model it for your fund. This is general information, not tax advice.
Leverage, where the rules allow it
Borrowing lets a fund buy a bigger asset than its cash alone. For new loans that now means business real property only.
Read the detail
Without an LRBA, a fund can only buy property up to the cash it holds. With one, it can buy a higher value asset, and gains and losses are both magnified. Since 10 August 2026, new leverage is limited to business real property. Existing residential SMSF loans keep their leverage until they are repaid.
Long-term holding for retirement
Property suits trustees who are years from retirement and can hold through market cycles without needing to sell.
Read the detail
Super is a long game. A property bought by the fund is meant to be held for members' retirement, and it is hard to sell part of it if the fund needs cash. Trustees who are closer to retirement need to plan how the fund will pay pensions while it holds a large single asset.
Control and asset protection
As trustee you choose which property to buy, when to sell and how the loan is set up.
Read the detail
Unlike a retail or industry fund, these decisions sit with you. Fund assets are held separately from your personal assets. The trade-off is concentration: one property can be a large share of the fund, so diversification is a key part of the investment strategy your accountant reviews.
The process
How an SMSF Loan Works, Step by Step
An SMSF loan involves more parties and more documents than a standard investment loan. Here is how it runs today, whether you are buying business real property, settling a pre-ban contract or refinancing an existing arrangement.
Step 1
Trust deed review
Your SMSF's trust deed must allow borrowing under an LRBA. Your accountant or SMSF administrator checks it first. If it does not, the deed is amended before any application goes in.
Step 2
Holding trust set up
A separate bare trust is set up, naming the SMSF as beneficiary, usually with a company as its trustee. It holds legal title until the loan is repaid. Your solicitor does this before contracts are signed.
Step 3
Application and lender assessment
We send your application to the specialist lender that suits your fund. The lender looks at the fund's cash flow (rent plus member contributions), its balance, the property and compliance. We prepare the file and the checklist for you.
Step 4
Valuation and formal approval
The lender orders an independent valuation. On approval a formal loan offer is issued. Commercial property and funds with several members usually take longer. We handle the lender communication throughout.
Step 5
Purchase and settlement
The holding trust trustee signs the contract of sale, not the SMSF trustee. At settlement the lender pays the price and the holding trust takes title. Repayments start, paid from the fund's rent and contributions.
Step 6
Repayment and title transfer
When the loan is repaid in full, legal title can move from the holding trust to the SMSF. Your solicitor confirms whether any duty applies in your state.
Refinancing an existing SMSF loan instead?
How a refinance differsShow less
A refinance skips the deed and trust set up because they already exist, but the new lender still reviews them. For a residential arrangement in place before 10 August 2026, the refinance has to stay over the same property and is generally expected to be at the existing level of debt. We confirm the new lender accepts the existing holding trust before we apply, so you are not paying to rebuild the structure. See our refinancing service for how a switch runs.
Sumit · 0:54
Free SMSF loan assessment
Not sure your fund can still borrow?
Tell us what the fund holds, the property you have in mind or the loan you already have, and when your contract was signed. Sumit will tell you which lenders can help and what they would need, then work with your accountant on the rest.
No cost and no credit check. Have your latest fund statement handy when we call.
- 5.0 from 360+ Google reviews
- 2,500+ clients helped
- Credit Rep 446824
Eligibility
Who Qualifies for an SMSF Loan?
Lenders assess the fund, not just the members. Their exact rules differ, so treat this as the list of things every SMSF lender will ask about, not a set of thresholds.
- The right property for the dateBusiness real property for any new LRBA. Residential only for a loan already in place before 10 August 2026, or a binding contract exchanged before that date.
- Fund requirementsAn existing SMSF with a trust deed that expressly permits borrowing, and a fund balance large enough to meet the lender’s minimum. Commercial lenders often ask for more.
- Cash flow serviceabilityThe fund must show it can meet repayments from rent and member contributions. We model this before submission to find the lenders whose assessment suits your fund.
- Liquidity after settlementCash left in the fund to cover repayments, rates, insurance and a vacancy. Lenders set their own minimum, and your accountant will want a buffer too.
- Contribution and depositLender policy, not an ATO rule. SMSF loans generally need more from the fund than a personal investment loan, and commercial property more again. A larger contribution lowers the repayments and widens your lender choice.
- Compliance documentationAn investment strategy that covers property and borrowing, a holding trust deed, and the fund’s financial statements and tax returns. We work alongside your accountant and SMSF administrator to confirm these before lodging.
We don't just arrange the loan; we make sure the whole file is ready before a lender sees it. Check if your fund qualifies
Rules and restrictions
What You Can and Cannot Do With an SMSF Loan
SMSF borrowing rules are strict, and the ATO monitors LRBA compliance closely. A breach can cost the fund its complying status and lead to serious tax consequences. These rules are summarised as the ATO states them; your SMSF accountant applies them to your fund.
Permitted
- Business real propertyOffices, shops, warehouses and similar premises used wholly and exclusively in a business, for any new LRBA.
- Existing residential arrangementsA residential SMSF loan in place before 10 August 2026 continues, and can be refinanced over the same property.
- Market rent to tenantsResidential property rented at market rates to unrelated tenants. Business real property can be leased to a related business at market rent.
- Repairs and maintenanceWork that keeps the asset in its existing condition. Borrowed money cannot pay for improvements.
- Repaying from rent and contributionsUsing the fund’s rental income and member contributions to service the loan.
- One asset per arrangementOne property per LRBA and holding trust.
Not permitted
- A new loan for residential propertySince 10 August 2026, unless a binding contract was exchanged before that date.
- Improving the property with borrowed fundsRenovations or extensions paid from the loan. Ask your accountant before using fund cash either.
- Personal useYou, your family or related parties cannot live in or use the property.
- Building on vacant land with the loanThe finished building is a different asset from the land. Construction is very restricted.
- Buying from a related partyGenerally not allowed, with an exception for business real property at market value.
- Two assets under one arrangementOr using the fund’s property as security for another loan.
Lenders
Which Lenders Offer SMSF Loans in Australia?
SMSF loans are written by a much smaller pool of lenders than ordinary home loans, mostly specialist and non-bank lenders. Each has its own credit policy, pricing and list of acceptable properties, and the pool for residential SMSF loans has shrunk further since the August 2026 ban.
Property types
Some lenders take only standard commercial premises; others accept specialised or mixed-use property. A few still refinance residential arrangements.How much the fund must contribute
Each lender sets its own maximum loan to value ratio for SMSF loans. Commercial property usually needs a bigger contribution than residential.Cash flow and liquidity
Lenders differ on how they count member contributions and how much cash they want left in the fund after settlement.Pricing and fees
SMSF loan rates are generally higher than standard investment loan rates, and establishment fees vary. We compare the total cost, not the headline rate.
We do not publish SMSF rates here because they change often and depend on your fund. Ask us for a current comparison for your fund.
Costs and fees
What Does an SMSF Loan Cost to Set Up?
SMSF property loans carry set up costs that do not exist in standard investment lending. Budgeting for them upfront avoids surprises at settlement. Each provider prices its own work, so get quotes from yours; here is what to ask for.
Holding trust set up
A bare trust deed and, usually, a company to act as its trustee, prepared before contracts are exchanged.
Read the detail
The deed names the SMSF as beneficiary and is a mandatory part of the LRBA structure. Use a solicitor who does SMSF work: cutting corners here creates risk that is expensive to fix later.
Trust deed amendment
Only if your SMSF deed does not already allow borrowing under an LRBA.
Read the detail
Many older deeds need updating. Your SMSF administrator or solicitor can arrange it. This step is often overlooked and can hold up an application if it is not done early.
Lender fees
Application, establishment, valuation and ongoing fees vary widely between SMSF lenders.
Read the detail
We put every fee into the comparison so the cheapest headline rate does not turn out to be the most expensive loan overall. Commercial valuations usually cost more than residential ones.
Legal and conveyancing
Higher than a standard purchase because of the trust deed review, LRBA checks and the holding trust signing.
Read the detail
The holding trust trustee, not the SMSF trustee, signs the contract of sale. Budget for a conveyancer or solicitor who has done SMSF purchases before, not a general practice.
Stamp duty (transfer duty)
Transfer duty applies to the purchase as it would for any investment property.
Read the detail
Use our NSW stamp duty calculator to estimate it. Whether duty applies when title later moves from the holding trust to the fund depends on your state and on the structure being right from the outset, so ask your solicitor at the start.
Annual audit and administration
Every SMSF needs an annual independent audit and ATO lodgement. Property and a loan add to the work.
Read the detail
Budget for an SMSF accountant who understands LRBA reporting. A property inside the fund means rent, expenses, depreciation and loan interest to account for each year.
Property types
Commercial vs Residential SMSF Property: Which is Right for Your Fund?
Both can sit inside an SMSF, but since 10 August 2026 only business real property (premises used wholly and exclusively in a business) can be bought with a new SMSF loan. The right choice still depends on your fund's cash flow, its balance, its investment strategy and whether you run a business.
| Inside an SMSF | Residential | Commercial |
|---|---|---|
| New SMSF loan (LRBA) | Not since 10 Aug 2026 | Business real property only |
| Existing loan and refinance | Yes, same property | Yes |
| Buy with fund cash | Yes | Yes |
| Lease to your own business | No | Yes, at market rent |
| Buy from a related party | No | At market value |
| Lender choice | Refinance only, few lenders | Specialist lenders |
General information, as the ATO describes business real property and related party rules. Your SMSF accountant confirms how they apply.
Residential SMSF property
Rented to unrelated tenants at market rent, never used by members or related parties, and never rented to your own business. Good for long-term growth, but new purchases must be paid for with the fund's own money.
Commercial SMSF property
Retail shops, offices, warehouses, industrial units and medical or professional suites. Business owners can lease the premises to their own business at market rent, so the rent goes into their super. Fewer lenders and a more detailed assessment.
Sumit · 0:49
Watch out for
Common SMSF Loan Mistakes to Avoid
SMSF property loans attract ATO scrutiny. Errors in structure, documents or ongoing management can make your fund non-compliant, with severe tax consequences. These are the mistakes we see trustees make most, and how to avoid them.
Assuming the old residential rules still apply
Many guides online were written before 10 August 2026. A new SMSF loan for a house or unit is no longer possible.
How to avoid it
Check the date of any article, seminar or spruiker pitch. If someone is offering a new residential SMSF loan, ask your SMSF accountant to confirm in writing how it fits the law before you pay for anything.
Holding trust set up after contracts
The bare trust must be in place before the contract of sale is signed, not after.
How to avoid it
If the SMSF trustee's name appears on the contract instead of the holding trustee's, the structure is flawed and may need costly fixing, which can include paying stamp duty twice.
Trust deed that doesn't permit LRBA borrowing
Not every SMSF deed allows borrowing under sections 67A and 67B of the SIS Act.
How to avoid it
Borrowing under a deed that lacks the power puts the arrangement at risk. Confirm the deed allows an LRBA before you start looking at property.
Renovating or improving with borrowed funds
Borrowed money under an LRBA can only be used to acquire or maintain the asset.
How to avoid it
Improvements paid from the loan are a compliance breach. If the property needs work, ask your accountant whether fund cash can be used and whether the work changes the asset.
Too little cash left after settlement
Trustees often underestimate the reserve the fund needs once the property settles.
How to avoid it
The fund must cover repayments, rates, insurance and repairs, including when the property is vacant between tenants. Lenders set their own minimum; your accountant will want a buffer above it.
Investment strategy not updated
The written strategy must cover property and the borrowing before settlement.
How to avoid it
Auditors flag this often. Have your accountant update the strategy to deal with the loan, the concentration in one asset and the fund’s liquidity.
Purchasing from a related party
An SMSF generally cannot buy residential property from a member, a relative or an associated entity.
How to avoid it
Business real property can be bought from a related party at market value, but it must be done carefully and documented, with advice from your SMSF accountant.
Refinancing into a new problem
Refinancing a grandfathered residential loan is fine. Changing the property or topping up the debt may not be.
How to avoid it
Keep a refinance to the same property and, generally, the existing level of debt. We confirm the new lender accepts the existing holding trust before we apply.
Avoiding these starts with the right structure from the outset. Book a free strategy call and we'll review your SMSF set up and flag any issues before you go under contract.
From the blog
SMSF lending guides from the RyRo blog
New residential SMSF borrowing was banned from 10 August 2026, so start with what the ban changed for trustees, what your existing arrangement can still do, and how business real property can still be bought with a loan.
FROM THE RYRO BLOG
SMSF Property Loans After the Residential Borrowing Ban (August 2026)
Specialist · 10 min read
New residential SMSF borrowing has been banned since 10 August 2026. Here is what happens to existing loans, whether you can still refinance, and how business owners can still buy commercial premises through super.
Read the guide
FROM THE RYRO BLOG
Buying Commercial Property With Your SMSF in 2026: A Sydney Guide
Commercial · 7 min read
Yes, you can buy commercial property with your super. Here is how an SMSF commercial property loan works in 2026: the LRBA structure, deposit and rates, leasing back to your business, and the rules that keep your fund compliant.
Read the guideWhy RyRo
Why Choose RyRo for Your SMSF Loan?
SMSF lending is a specialised niche, and most general brokers rarely see these applications. We work with SMSF trustees and understand both the lending and the compliance context, including what changed in August 2026.
Access to specialist SMSF lenders
We know which lenders are still active in SMSF lending, how their credit policies differ and which one suits your fund, so you avoid wasted applications and unnecessary credit enquiries.$0 broker fees, always
Our service is free to you. The lender pays us when your loan settles, at no extra cost to you or your fund. You get the comparison, the application and settlement support without a broker fee.Compliance-aware application preparation
SMSF loans need the trust deed, holding trust deed, investment strategy and fund financials on top of the usual documents. We give you one checklist and liaise with your accountant and administrator so the lender gets everything at once.We protect your fund's credit position
Several applications mean several credit enquiries, on the fund and often on the trustees. We target one well-matched lender from the start, not a scattergun approach.Coordinated with your SMSF advisers
A good SMSF loan does not happen in isolation. We work with your accountant, financial adviser and SMSF administrator so the structure, the strategy and the documents are right, not just the loan.
More than 2,500+ clients have trusted RyRo Loan Centre with their lending, and we are rated 5.0 from 360+ Google reviews. We are based in Norwest in the Hills District and help SMSF trustees across Sydney and NSW. Credit Rep 446824.
Reviews
What Our Customers Say
SMSF clients in their own words, word for word from Google. In the video, a client explains how a refinance, two investment properties and an SMSF purchase came together.
5.0
From 360+ Google reviews
Sumit · 2:59
Jagdeep Gill
a year ago on Google
We had an absolutely outstanding experience with RyRo Loan Centre and I cannot thank Sumit enough for his incredible support throughout my investment loan process. It was very challenging process to get loan through SMSF but team made the whole process easy. RyRo Loan Centre is truly one of the best in the business and I cannot recommend them enough. Thanks Team
JignaSamir shroff
a year ago on Google
Had a great experience working with Sumit, Dean and the whole Ryro team. The process was seamlessley straightforward and we had no issues throughout the whole loan processing. Turaround time was less than 5 weeks, end to end. High recommend RYRO finance for SMSF and other home loans.
Conserve Conserve
a year ago on Google
It was great and an absolute pleasure working with Ryro finance, Sumit and his team for our SMSF LOAN application. They are an expert in this field and the whole process was seamless and stressfree. Didn't even imagine it could be so easy. Thank you Sumit, Dean and the who Ryro team. Best wishes for everything. Regards Samir.
Ajay Bhatia
2 years ago on Google
Sumit has recently helped us secure our SMSF loan plus refinance and we can’t recommend him highly enough. He makes the whole process stress-free with very clear and timely communications. He went above and beyond to help us secure our financing in a short timeframe. We won’t be going anywhere else for our future mortgage requirements. Thanks Sumit.
Your journey
From First Call to Settled Property
We guide you through every step, from confirming your SMSF can borrow for the property you have in mind to settlement and beyond.
Step 1
Free strategy call
You tell us the fund balance, the property or existing loan, your timeline and any structural questions. We confirm what is possible since 10 August 2026 and outline lender options before you go under contract.
Step 2
Structure check
With your accountant we confirm the deed permits borrowing, the investment strategy covers property, and a holding trust is in place or can be set up.
Step 3
Checklist and application
We give you a tailored document checklist and prepare the application: fund financials, trustee details, property details and compliance documents.
Step 4
Lender assessment
We submit to the most suitable SMSF lender and handle every request for more information during assessment.
Step 5
Valuation and approval
The valuation is ordered and formal approval issued. We coordinate with your solicitor on the holding trust signing and prepare for settlement.
Step 6
Settlement and beyond
The property settles into the holding trust and repayments begin. When a fixed term ends or the loan no longer suits, we're here to review it.
Start with a free strategy callWe'll confirm whether your fund can borrow and what your options look like.
Common questions
SMSF Loan FAQs
Updated for the August 2026 SMSF borrowing change. General information only.
Can I buy property in my SMSF?
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Yes, but how you pay for it now matters. Your SMSF can still buy residential or commercial investment property with money already in the fund. Borrowing is narrower: since 10 August 2026 an SMSF cannot enter a new limited recourse borrowing arrangement (LRBA) to buy residential property. New SMSF borrowing is now limited to business real property: premises used wholly and exclusively in a business. Whatever you buy must meet the sole purpose test, cannot be lived in or used by you or related parties, and must be rented at market rates. Your SMSF accountant confirms the fund side.
What deposit do I need for an SMSF loan?
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There is no single answer, because the deposit is set by each lender’s SMSF policy, not by the ATO. Lenders look at the property type, the loan size, the fund’s balance and how much cash the fund keeps after settlement. SMSF loans generally need a bigger contribution from the fund than a personal investment loan, and commercial property usually needs more again. We check current policy across the lenders who still write SMSF loans and tell you what your fund would need before you sign anything.
Can I live in an SMSF property?
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No. Property held by your SMSF must be kept for the sole purpose of providing retirement benefits. You, your relatives and other related parties cannot live in a residential property owned by the fund, even for a short stay or a holiday, and it cannot be rented to them. The rule applies whether the fund bought the property with cash or with an existing SMSF loan. Breaching it can put the fund’s complying status at risk, so talk to your SMSF accountant before any use of the property.
What are the benefits of buying property through an SMSF?
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Trustees usually point to three things: control over a real asset, rent and growth that stay inside the concessionally taxed super environment, and, for business owners, the ability to own the premises their business leases at market rent. Whether those benefits outweigh the costs, the lack of diversification and the loss of access to the money until retirement depends on your fund. That is a question for your licensed financial adviser and SMSF accountant. RyRo arranges the finance once the strategy is settled.
How much can I borrow in my SMSF?
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The amount is set by the lender’s policy and by what the fund can afford, not by a fixed ATO limit. Lenders assess the fund’s balance, the rent the property will earn, the members’ regular contributions and the cash left in the fund after settlement. For a new loan the property must be business real property. If you are refinancing an existing residential SMSF loan, plan on refinancing the debt you already have rather than borrowing more. We model the numbers with you on a free strategy call.
Do all lenders offer SMSF loans?
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No. SMSF loans come from a much smaller group of lenders than ordinary home loans, mostly specialist and non-bank lenders, and fewer of them have products for residential property since the August 2026 ban. Each lender has its own rules on the property types it accepts, how much the fund must contribute, how it assesses the fund’s cash flow and what it charges. A broker who arranges SMSF loans knows which lenders are still active and which one suits your fund, so you avoid wasted applications.
What is a bare trust (holding trust) and why is it required?
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A bare trust, also called a holding trust, holds legal title to the property while the SMSF loan is in place. Your SMSF is the beneficial owner and receives the rent. The ATO describes this as a core part of an LRBA: the asset is held on trust and the lender’s recourse is limited to that asset. The holding trust and its trustee are set up before contracts are signed. When the loan is repaid, title can move to the fund. Your solicitor and SMSF accountant handle the documents.
Can my SMSF buy commercial property?
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Yes, and it is now the main way an SMSF can borrow to buy property. A new LRBA can still be used for business real property, such as an office, shop, warehouse or medical suite used wholly and exclusively in a business. Business owners often have the fund buy their premises and lease them back to the business at market rent. Commercial SMSF loans have their own lender rules and usually need a larger contribution from the fund. See our commercial SMSF lending page for how that works.
What are the tax benefits of buying property through an SMSF?
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Income and gains inside a complying super fund are taxed at concessional rates, and the treatment can change again once the fund starts paying a pension. Loan interest and property costs are generally deductible to the fund. How much that is worth depends on your fund’s phase, your balance and your wider tax position, and the rules change from time to time. Treat this as general information only and ask your SMSF accountant or tax adviser to run the numbers for your fund before you decide.
How long does SMSF loan approval take?
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Longer than a standard investment loan, because the lender checks the fund as well as the property. It needs the SMSF trust deed, the holding trust deed, the investment strategy, the fund’s financial statements and tax returns, and details of every member and trustee. Commercial property also needs the lease and a commercial valuation. The biggest cause of delay is a missing document, so we give you one complete checklist at the start and chase your accountant and solicitor for the pieces they hold.
Can an SMSF still borrow to buy residential property after August 2026?
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Not for a new purchase. From 10 August 2026 an SMSF cannot enter a new limited recourse borrowing arrangement to buy residential property. There are limited exceptions: arrangements already in place before that date continue, and a binding contract exchanged before 10 August 2026 can still settle with an LRBA. The fund can also still buy residential property outright with its own money. If you are not sure which side of the date your contract falls on, ask your solicitor and SMSF accountant, then talk to us about the finance.
What is a limited recourse borrowing arrangement?
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A limited recourse borrowing arrangement, or LRBA, is the only way an SMSF can borrow to buy an asset. The ATO describes it this way: the fund borrows to buy a single acquirable asset, the asset is held in a separate holding trust, and if the loan goes into default the lender can only claim against that asset, not the fund’s other savings. Many lenders also ask the members for personal guarantees, so the protection can be narrower than it sounds. Your SMSF accountant can explain how it applies to your fund.
Can an SMSF refinance an existing loan?
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Yes. An existing SMSF loan over residential property is grandfathered, and refinancing it to a new lender for the same property is still possible after 10 August 2026. Lenders and advisers expect the refinance to be at the existing level of debt, not a top-up. Refinancing can make sense when a fixed term ends, when the rate no longer suits or when the lender changes its policy. We compare the lenders still active in SMSF lending and handle the switch with your accountant.
Can my SMSF borrow to renovate?
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No. The ATO’s rules say borrowed money under an LRBA cannot be used to improve the asset. The fund can pay for repairs and maintenance that keep the property in its existing condition, and in some cases can fund improvements from its own cash, but an improvement that changes the asset into a different asset is a problem while the loan is in place. Where the line falls is technical, so ask your SMSF accountant before you start any work on a fund property.
Can I buy a property from a family member with an SMSF loan?
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Generally not for residential property. Super law stops an SMSF from acquiring assets from related parties, which includes members and their relatives, with some exceptions. The main exception is business real property bought at market value, which is why business owners often have their fund buy the premises they already run their business from. Related party rules are complex and the penalties are serious, so get advice from your SMSF accountant or licensed financial adviser before you agree to any sale.
Do I need financial advice before an SMSF loan?
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You should get it. Whether your fund should hold property, and whether it should borrow to do it, is a question about your super and retirement strategy. That advice has to come from a licensed financial adviser, with your SMSF accountant checking the fund’s deed, investment strategy and compliance. RyRo Loan Centre arranges the finance: we find the lender, prepare the application and manage it through to settlement, working alongside your advisers rather than replacing them.
What happens if the SMSF cannot repay?
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Under an LRBA the lender’s claim is limited to the property held in the holding trust, so the fund’s other assets are protected from that lender. In practice the property can be sold, and any shortfall may fall on members who signed personal guarantees. Before you borrow, make sure the fund keeps enough cash to cover repayments if the property is vacant or a member stops contributing. Your SMSF accountant and financial adviser can stress test the fund, and we size the loan to suit.
Free tools
Plan Your SMSF Borrowing
Our calculators are built for personal loans, so treat them as a rough guide for a fund. They are still useful for modelling repayments and purchase costs before you talk to a lender.
For figures based on your fund's balance, the property and the structure, get a free SMSF assessment
Keep reading
Related guides from RyRo Loan Centre
In-depth reading for SMSF trustees and investors in 2026.
- SMSF property loans after the residential borrowing ban
Where existing SMSF loans stand, refinancing and what is still possible.
- Buying commercial property with your SMSF
The lease-back, business real property and how a commercial purchase runs.
- Buying property in a trust: pros, cons and loan options
How SMSF holding trusts differ from family trusts, and when each fits.
- Negative gearing explained
Worked examples and what changes in 2027, for investors weighing super against personal ownership.
Free SMSF loan assessment
Ready to Borrow Inside Your SMSF?
Tell us what your fund holds and what you want it to do. Sumit will tell you whether a loan is possible after the August 2026 change, which lenders would look at it, and what your accountant needs to prepare. RyRo Loan Centre arranges the finance at no cost to you.
We generally respond within an hour. Prefer to pick a time? Book your strategy call online or contact us.
Sumit Joshi JP
Principal broker, Credit Rep 446824
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Sumit Joshi JP, Credit Rep 446824. AFG Award Winner 2013 to 2019 and AFG Excellence Awards finalist 2022 to 2026. General information only, not super, tax or financial advice. Get advice from your SMSF accountant or a licensed financial adviser before your fund buys property or borrows.