SMSF Finance, Property Loans for Self-Managed Super Funds
Arrange residential and commercial property finance for your self-managed super fund through a Limited Recourse Borrowing Arrangement (LRBA). Access to an extensive lender panel (including boutique, wholesale and non-bank lenders), Brisbane-based broker support, Australia-wide.
Property Finance Structured for Your SMSF
SMSF lending sits at the intersection of finance structuring and business strategy, exactly where JB operates. Trustees working through an LRBA aren't just making a loan decision; they're making an investment and compliance decision. JB brings the financial depth to help you understand the full picture.
Self-managed super funds can borrow to purchase property through a Limited Recourse Borrowing Arrangement, a specialist structure where the lender's recourse is limited to the asset being acquired. It's a legitimate and widely-used strategy for SMSF trustees looking to hold property within their fund, but it requires careful lender selection and compliance-aware structuring.
JB Fremy works with SMSF trustees to arrange the finance component of an LRBA, sourcing from an extensive lender panel (including boutique, wholesale and non-bank lenders) to match your fund's profile with a lender whose credit policy, LVR appetite and rates suit your specific situation.
SMSF lending is a specialist area. JB works in conjunction with your SMSF auditor, accountant and financial planner, coordinating the finance piece within the broader compliance and structural requirements your advisers have established.
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Why Work With JB for SMSF Finance
Commercial & Residential
Commercial and residential SMSF, including business premises lending.
Works With Your Advisers
Works alongside your SMSF accountant, auditor and financial planner, not around them.
Reads the Fund Financials
Reads the fund financials the way a lender will, and prepares the application accordingly.
What JB Can Help Your Fund Finance
SMSF lending covers a range of property types and structures. JB works with your fund's profile to find the right lender and product.
SMSF Residential Property Loans
Finance for residential investment property held within your SMSF via an LRBA. Covers houses, townhouses and apartments in eligible locations. The property must meet lender criteria, typically in metropolitan or major regional areas, and must not be used by fund members or their relatives. JB sources across an extensive lender panel (including boutique, wholesale and non-bank lenders) to identify lenders with appetite for your fund's position.
SMSF Commercial Property Loans
Finance for commercial property (including offices, warehouses, retail premises and industrial sites) purchased within an SMSF. A significant benefit of commercial SMSF lending is the ability to purchase business premises that are then leased back to your own business at market rent, subject to strict compliance requirements. Commercial SMSF loans often come with higher LVR limits and different lender risk appetites compared to residential.
LRBA Structuring & Lender Coordination
An LRBA requires a bare trust structure, a corporate trustee for the SMSF, and a lender whose documentation aligns with ATO compliance requirements. JB coordinates the finance component in conjunction with your SMSF accountant, auditor and legal adviser, ensuring lender requirements are met and the documentation chain is properly structured from application through to settlement.
SMSF Loan Requirements: What You Need to Have in Place
SMSF lenders apply specific requirements that go beyond standard residential lending. Understanding these requirements early helps avoid delays and ensures your fund is positioned for a successful application.
Most SMSF lenders require the fund to have a corporate trustee (a company acting as trustee) rather than individual trustees. If your fund currently has individual trustees, your SMSF accountant or legal adviser can assist with the conversion before you apply.
A bare trust (holding trust) must be established to hold the property during the loan term. This document needs to be in place and correctly executed before settlement. Your SMSF legal adviser typically prepares this deed, JB coordinates with them to ensure the lender's documentary requirements are met.
Lenders assess the fund's ability to service loan repayments from fund income, including rental income, member contributions and investment returns. Most lenders require the fund to retain sufficient liquid assets after the purchase to cover ongoing expenses and a buffer for vacancy periods or unexpected costs.
Lenders require current SMSF financial statements, the most recent tax return, the fund's trust deed, and evidence that the fund is compliant and registered with the ATO. Your SMSF accountant and auditor should be able to supply these as part of the application package.
Not all properties are acceptable to SMSF lenders. Most lenders restrict SMSF residential loans to standard property types in metropolitan and recognised regional areas. Rural properties, high-density inner-city apartments, properties over a certain size, or properties with unusual characteristics may fall outside lender policy. JB assesses property eligibility as part of the pre-application process.
SMSF lenders typically apply stricter LVR limits than standard investment lending. Residential SMSF loans commonly range from 70–80% LVR. Commercial SMSF loans are typically lower, often 65–70% LVR. Lender appetite varies, access to an extensive lender panel is important for finding the best available terms for your fund's situation.
The SMSF Finance Process, Step by Step
SMSF lending involves more moving parts than standard investment lending. Here's how JB coordinates the finance piece from initial enquiry through to settlement.
Initial Strategy Call
JB reviews your fund's position, the property you're considering, and your fund's existing documentation. This call establishes whether the fund is ready to proceed or whether preparatory steps are needed first. JB is not a financial planner, if you haven't yet confirmed an LRBA is appropriate for your fund's objectives, JB will direct you to engage a licensed financial planner before proceeding.
Lender Assessment and Shortlisting
JB identifies lenders from the extensive lender panel (including boutique, wholesale and non-bank lenders) whose policy suits your fund's profile, factoring in fund size, liquidity, property type, location and LVR. SMSF lending is a specialist area and lender appetite varies significantly; having access to a panel of SMSF lenders is essential to finding the right fit.
Application Preparation and Submission
JB coordinates the application package, working with your SMSF accountant for financials and tax documentation, and your legal adviser for the trust deed and bare trust. SMSF applications require more documentation than standard loans, and early coordination with your adviser team reduces delays at the assessment stage.
Conditional Approval and Valuation
Once the application is submitted, the lender assesses the fund, the property and the proposed LRBA structure. A valuation is ordered by the lender. JB manages the lender communication and responds to any requests for additional information during assessment, keeping the process moving and keeping you informed.
Settlement and Post-Settlement Support
JB coordinates with your legal adviser and the lender for settlement. SMSF loan settlements require specific documentation to be executed correctly, including bare trust establishment and lender-specific requirements. Post-settlement, JB remains available for any loan administration questions and can review the facility as your fund's circumstances change.
SMSF Finance, Frequently Asked Questions
Yes. An SMSF can borrow to purchase residential or commercial property through a Limited Recourse Borrowing Arrangement (LRBA). Under this structure, the asset is held in a separate bare trust during the loan term and transfers to the SMSF once the loan is fully repaid. The fund must have a corporate trustee and meet lender serviceability and ATO compliance requirements. The decision to use an LRBA is a significant financial decision, seek advice from a licensed financial planner or SMSF adviser to confirm the strategy is appropriate for your fund's objectives before engaging a broker.
An LRBA is the legal mechanism that allows an SMSF to borrow to acquire a single acquirable asset. The key feature is that the lender's recourse in the event of default is limited to the asset being acquired, the other assets of the SMSF cannot be pursued by the lender. The property is held in a holding trust (bare trust) during the loan term. Upon full repayment, the asset is transferred into the SMSF. LRBAs are strictly regulated under the Superannuation Industry (Supervision) Act 1993.
Yes, purchasing business real property through an SMSF and leasing it back to your business at market rent is one of the more common and legitimate uses of SMSF commercial property lending. This allows business owners to pay rent into their super fund rather than to a third-party landlord. The arrangement must be at arm's length (market rent, formal lease), and the property must meet the definition of "business real property" under the SIS Act. Your SMSF adviser can confirm whether your premises qualify.
SMSF lending is a specialist area. The major banks have largely withdrawn from SMSF lending, and the market is now primarily served by non-bank lenders, specialist lenders, and select credit unions and mutuals. Lender appetite, rates, LVR limits, fund size requirements, and property type eligibility vary considerably across lenders. Access to an extensive lender panel (including boutique, wholesale and non-bank lenders) is important for SMSF borrowers, JB's panel includes a range of SMSF-specialist lenders who can consider fund profiles that may not suit a single-lender approach.
Yes. A mortgage broker arranges the finance, they are not licensed to advise on whether an SMSF or an LRBA is the right strategy for your personal financial situation. That strategic advice must come from a licensed financial planner or SMSF specialist. JB works in conjunction with your existing financial planner, SMSF accountant and legal adviser to arrange the finance component once the decision to proceed has been made and the structural requirements are in place.
Every eligible home loan settled through JBF Solutions triggers a $200 donation to the Bulimba Community Centre, at no cost to you. Learn more →
Ready to Arrange Finance for Your SMSF?
Book a call with JB to discuss your fund's position, the property you're considering, and the lender options available, at no cost and no obligation.