Your SMSF Lending Experts

What changed in August 2026

From 10 August 2026, a self-managed super fund can no longer enter a new limited recourse borrowing arrangement to buy residential property. Existing SMSF loans continue, and a contract exchanged before 10 August 2026 is protected even if it settles later.

What we can help with

• Commercial property. Borrowing to buy business real property, such as an office, warehouse or medical suite, is still available. The property must be used wholly and exclusively in a business. A building with an office downstairs and an apartment upstairs will generally not qualify.
• Buying your own business premises. Business real property is the exception that lets a fund buy from a related party and lease the premises back to your business.
• Refinancing an existing SMSF loan. Refinancing is generally allowed where the loan balance does not increase. We compare the lenders who still offer SMSF loans.

How it works

1. We talk through the fund, the property and your timing.
2. We work with your accountant or adviser on the structure, including the bare trust deed, which needs to be in place before the contract is signed.
3. We find lenders whose SMSF policy suits the property and the fund.
4. We manage the application through to settlement.

We do not give financial or tax advice on whether an SMSF or a property purchase suits you. Speak with a licensed financial adviser and your accountant before you proceed.

Reviewed by Patrick Moore, Director, Loan Market Clayfield, November 2026. This is general information only and does not take into account your personal circumstances. Lender policy varies.

Joan wanted a wealth building plan to help her set aside funds for a large nest egg for retirement. She had a SMSF with $200,000 and used the money to borrow extra funds to secure a residential investment property. Using a variable rate loan with a 7.80%p.a. interest rate, Joan borrowed $300,000 with an LVR of 80 per cent. The deposit is partly covered by some of Joan's SMSF funds, while the balance is borrowed money.

This allowed her to buy a property for $475,000, bringing the total cost, including stamp duty and other fees, to $500,000. Joan then rented the property out at $500 per week, giving her an annual rental stream of $26,000. Using money earned from the rent and other income, Joan was able to meet her home loan repayments and used SMSF money to cover repairs to the property.

Keeping an eye on market rates, Joan can increase the rent of her property while it grows in value over time. As a result, Joan can earn a steady stream of rental income and re-sell the property in the future potentially for a higher amount.