SMSF lending,
by the book.

Can my SMSF still borrow to buy property?

Yes, for business real property: commercial, industrial, retail, a medical suite, the warehouse or office your own business occupies. No, for a house or apartment to rent out: new residential limited recourse borrowing ended on 10 August 2026. Loans signed before then are grandfathered and can be refinanced.

The structure is unchanged. The fund borrows under a limited recourse borrowing arrangement, the property sits in a separate holding trust, the lender's recourse is limited to that one asset, and borrowed money can maintain or repair the property but never improve it. What changed is the kind of property a new loan can buy.

The most common use we see now is a business owner's fund buying the premises the business already rents, with the business paying market rent to the fund. It is a strategy with real tax and estate-planning consequences, so we work alongside your accountant and financial adviser rather than instead of them.

Which lenders do SMSF loans in 2026?

Specialist and non-bank lenders: La Trobe Financial, Liberty, RedZed, Pepper, Bluestone, Granite and Firstmac among them. The big four banks left new SMSF lending in 2018 and 2019, so if your bank says no, that is the market, not your fund.

Each of those lenders has its own view on minimum fund balance (indicatively $200,000 to $300,000), the cash buffer the fund must keep after settlement, whether members' personal guarantees are required, and which asset types it will take. Rates sit roughly one to two percentage points above a standard investment loan. We know who is competitive for a $700,000 industrial unit and who is competitive for a $2 million medical suite, and they are rarely the same lender.

How much can an SMSF borrow for a commercial property?

Usually 65 to 75 per cent of the purchase price, with the fund contributing the balance plus costs from its own cash. Serviceability is tested on rent plus member contributions, after a buffer, and the fund must keep enough liquidity to cover repayments, insurance and any pensions.

Because recourse is limited, lenders are more conservative than on a personal loan: lower LVRs, shorter maximum terms, and sometimes a requirement that contributions continue at a stated level. Stamp duty on commercial property in Victoria is also mid-transition to the new commercial and industrial property tax, which changes the cash the fund needs at settlement. We model all of it before the fund signs anything.

Should I refinance my existing SMSF residential loan?

Possibly. Loans written years ago with the few lenders then in the market are often one to two points above today's specialist rates. The refinance must be like-for-like: no equity release, no new purchase, same asset in the same holding trust.

It is worth a look if your rate starts with a 7 or 8, if the loan is interest-only and about to roll to principal and interest, or if the fund's cash flow has changed. The process is slower than a personal refinance because the holding trust, the fund deed and the bare trust deed all get reviewed, so allow six to eight weeks.

What does an SMSF loan cost to set up?

More than a home loan. Expect lender establishment and legal fees in the low thousands, valuation and the holding trust documents on top, and the fund's own accountant and lawyer time. For a $700,000 purchase, total set-up costs of $5,000 to $10,000 before stamp duty are typical.

None of that is paid to us. We are paid by the lender, disclosed in writing before you decide, and our recommendation does not change with it.