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A Self-Managed Superannuation Fund (SMSF) is a type of superannuation fund in Australia that allows members to take direct control and responsibility for managing their retirement savings.

SMSFs can, in certain circumstances, borrow to acquire eligible assets through a Limited Recourse Borrowing Arrangement (LRBA), subject to strict superannuation legislation and lending requirements.

Following the changes that came into effect on 10 August 2026, new SMSF borrowing arrangements generally cannot be used to purchase ordinary residential property.

SMSFs may still:

1. Purchase eligible commercial/business real property through an LRBA, subject to the relevant requirements.

2. Purchase residential property using SMSF funds without borrowing, provided the investment complies with superannuation laws.

3. Maintain eligible existing residential SMSF loans, with certain existing arrangements protected under transitional rules. Refinancing may also be possible, subject to the circumstances and lender policy.

For SMSF commercial property loans, lenders generally require a substantial contribution from the SMSF towards the purchase price and associated costs.

The required contribution can vary depending on the lender, property type, valuation, rental income and the SMSF's financial position.

1. Cost and Fees:
SMSFs can involve higher costs compared to other types of superannuation funds, including setup, administration, investment, accounting and audit costs.

2. Legal and Compliance Responsibilities:
SMSFs are subject to strict regulatory and compliance requirements. Trustees are responsible for ensuring the fund is properly managed, maintaining records, completing annual audits and meeting reporting obligations.

3. Insurance and Protection:
Consider whether your SMSF's insurance arrangements are appropriate for your circumstances, including life, TPD and income protection insurance where applicable.

4. Professional Advice:
Before establishing an SMSF or investing in property through one, speak with a qualified financial adviser, accountant and SMSF specialist. They can help determine whether an SMSF and proposed investment strategy are appropriate for you.

SMSF property lending is more complex than a standard home loan. It is important to obtain appropriate financial, tax and legal advice before proceeding.

An SMSF loan involves a more complex structure than a standard home loan. The right lender and loan structure can make a significant difference.

At Mortgage Next, we can help you understand your lending options, compare suitable lenders and structure finance for eligible SMSF commercial property purchases or refinancing of existing SMSF loans.

At Mortgage Next, we’re here to ensure your loan structure works for your future, not against it.

👉 Call Ankur Mathur on 0424 203 363 or email ankur@mortgagenext.com.au to book your consultation.

This information is general in nature and does not constitute financial, tax, legal or SMSF advice. SMSF borrowing and property investments are subject to legislation, eligibility requirements and lender policy. Please obtain appropriate professional advice before proceeding.