Can my SMSF really buy investment property with a loan?

Yes — through a Limited Recourse Borrowing Arrangement (LRBA). The fund borrows, a separate bare trust holds the property, and the lender's recourse is limited to that single property. Strict compliance rules apply.

How much fund balance do I need to start?

Most lenders want $200K+ in the fund and at least 30% deposit on the target property. Some lenders want $300K+ minimum balance and a liquidity buffer post-purchase.

Can my SMSF buy property I will live in?

No — SMSF residential property must be at arm's length and cannot be lived in or rented to fund members or related parties. SMSF commercial property has more flexibility.

Are SMSF loan rates higher than personal investment loans?

Yes — typically 0.5-1.5% higher than a standard investor loan rate. The premium reflects the additional structuring complexity and limited recourse nature of the loan.

Can I improve or renovate the SMSF property?

Significant improvements need separate funding — not from the LRBA. Maintenance is fine. Get this wrong and the ATO can deem the structure non-compliant. We coordinate with your SMSF specialist on this.

Smsf Home Refinancing

Who this guide is for

SMSF trustees with $200K+ in fund balance considering property
Existing SMSF property owners looking to refinance
Investors comparing direct property vs SMSF property purchase
High-income earners using SMSF as a long-term wealth-building vehicle

The real challenge

Many of the major banks have exited SMSF lending. Of those still active, each has slightly different rules — minimum fund balance, liquidity tests, single property type, residential vs commercial. Borrowers often spend weeks on the wrong lender before realising it doesn't fit.

The structuring is also complex — bare trust, custodian, single asset, no improvements without separate funding. Get one element wrong at the start and the ATO can deem the structure invalid.

How Mortgagefy helps

Mortgagefy works with the active SMSF-friendly lenders in Australia. We'll tell you upfront whether your fund balance, contribution rate and property goal will pass each lender's serviceability — before you waste time and money.

We coordinate with your SMSF accountant or specialist on bare trust setup, custodian selection and structuring. The borrowing piece is one part of a bigger compliance picture and we work alongside your professionals.

How it works — 4 simple steps

Fund review

Balance, contribution rate, member age, liquidity buffer — every lender weights these differently.

Lender match

Of the 6-8 active SMSF lenders we identify the 2-3 most likely to approve your specific scenario.

Trust structure

We coordinate with your SMSF accountant/specialist on bare trust and custodian setup.

Settlement

Application, valuation, settlement coordinated. Most SMSF loans settle in 6-10 weeks.

Frequently asked questions

We use offer letters and vesting schedules to value RSUs conservatively. We present current vesting value + projected future vesting as a 3-5 year income average. This gives lenders confidence in your income stability while accounting for market volatility.

Both. We work with W2 employees, 1099 contractors, and consultants. For contractors, we use 2 years of tax returns plus business financials. We have lenders who specialise in contractor income—they understand the variability.

Unvested options have zero value for refinancing. We count only vested equity. If you have a 4-year vest, we use 25% of the grant value (what's vested) plus a conservative projection of future vesting.

If you've been in your new role 6+ months, most lenders will refinance. We'll use your offer letter plus 6 months of pay stubs. If less than 6 months, it's harder but possible with specialist lenders.

Yes, if you have 2+ years of bonus history. We average the past 2 years and present it conservatively. Some bonuses get counted at 50% to be conservative with variable compensation.

ESPP is counted as deferred compensation. If your company matches or you have a discount, we value it as part of total compensation package.

Get a free SMSF property loan assessment

We work with the active SMSF lenders and your accountant or specialist to model the full picture — before you commit to a structure.

Start Your Free Assessment Call 0432 634 648

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SMSF Home Loans — Buying Property Through Your Self-Managed Super Fund