How much can I borrow?

We can help you to apply for:

  • Standard SMSF Investment Loans: Up to 80% of the property value. However, please note that most lenders will restrict your loan up to 70% of the property value.
  • : Up to 75% of the property value for non-specialised securities.
  • Discounts: Most lenders add a margin to their normal residential loan rates for SMSFs, however these margins vary significantly.
  • Low doc (no income evidence): are available although there are many restrictions.
  • Bad credit: Up to 80% of a residential property or 70% of a commercial property with an .
  • Standard investment loan rates may be available: Your SMSF structure must meet certain criteria.
  • Unusual security or income types: There are specialist lenders that can help.
  • Construction finance: SMSF construction finance isn’t available.

Lending policies for SMSFs vary between lenders, particularly in the way they assess your ability to repay the loan.

Please call us on 1300 889 743 or fill in our free assessment form to speak to a mortgage broker who specialises in SMSF loans.

How will the banks assess my borrowing capacity?

The main hurdle encountered by most SMSF applicants is proving that there is sufficient income in the trust to support the loan.

Typically, the banks will look at the current income of the trust based on its previous two years tax returns and will then assess if that income plus the proposed rental income will be sufficient to service the debt.

Some lenders can also use the income of members or beneficiaries of the SMSF to support the application if a personal guarantee is provided.

You can use our SMSF borrowing power calculator to see how some of our banks would assess your situation.

Are there any restrictions?

There are restrictions on SMSF loans which prevent some transactions from taking place. For example:

  • Construction loans are not available. The SMSF is able to pay for renovations out of its own funds, but can’t use the borrowed additional funds for this purpose.
  • Refinances of existing SMSF loans are only available from a few lenders.
  • Buying a property in your SMSF that you intend to live in as a home is not allowed (owner occupied business premises are acceptable).
  • Selling a residential property to your SMSF, that you or a related party owns is not allowed (commercial property is acceptable).
  • Banks have liquidity requirements when your borrow for your SMSF but some lenders are less strict than others.

You may also wish to speak to your accountant or financial planner to find out if your intended transaction complies with lender rules and government regulations.

How can I get approval?

Compared to home loans and commercial loans, this type of lending is relatively new.

Each bank has come up with their own way of assessing SMSF applications, so if your bank can’t help you then please contact us and our mortgage brokers who specialise in SMSF and limited recourse loans will help you to find a solution.

Cheaper interest rates when lending to the bare trust!

In a typical SMSF borrowing arrangement, the lender lends to the SMSF trustee who doesn’t actually hold legal ownership of the property. This is known as “borrowing money”.

One of our lenders will actually lend to the trustee of the bare trust or holding trust, which means you can qualify for higher LVRs and lower interest rates. This is known as “maintaining a borrowing”.

In order to meet SIS Act compliance requirements, there needs to first be an agreement between the SMSF trustee and the trustee of the bare trust.

You should speak to your accountant when considering entering such an agreement.

In addition to this requirement, the bare trust trustee must be a company or company director.

When assessing the trustee’s capacity to borrow, the lender will use the director’s income or the trustee company’s latest profit and loss statement including any rental income.

Please call us on 1300 889 743 or complete our free assessment form to speak with one of our mortgage brokers about the benefits of maintaining a borrowing versus borrowing money for your SMSF.

Why use a mortgage broker?

The residential investment and commercial loans offered by the major banks are not as competitive as those offered by smaller banks and building societies. Many lenders pulled out of the SMSF market entirely in 2018.

For a standard home loan there is only a small difference between different lenders. However, for an SMSF loan there are big differences in fees and interest rates.

In particular, many major banks process loans for SMSFs via their commercial or business banking department. These parts of the banks have much higher costs than the normal home loan department, and as a result they charge more for their loans.

In addition to this, not all lenders can provide an offset account with your mortgage, which is critically important if you have a lot of cash in your SMSF.

A 100% offset account is a regular cheque account, except that it is linked to your home loan account. The lender only charges you interest on the balance of your home loan minus the balance of your offset account. The benefit of this is that you can pay off the loan much quicker and also save a lot of money in interest.

We know which lenders have offset accounts for SMSF home loans and can help you compare SMSF loans as well. Please call us on 1300 889 743 or fill in our free assessment form and one our expert mortgage brokers will help you get an SMSF loan with a lender that best suits your needs.


What is a Self-Managed Superannuation Fund (SMSF)?

An SMSF is a special type of trust that people can set up to manage their own superannuation.

Like a normal super fund, your employer contributions still get paid into the fund and you can make additional contributions as you see fit.

However, unlike a normal super fund, the trustee (either you or your company) has direct control over the assets that your superannuation is invested in.

Many people also use their SMSF to help plan for their retirement and assist with tax planning.

When is an SMSF allowed to borrow money?

There are laws restricting the use of SMSFs to borrow money, and restricting the recourse of the lender in the event that the trust cannot meet its repayment obligations.

A basic outline of the rules a trust must follow in order to borrow money, is as follows:

  • The asset is an asset the SMSF could otherwise legally acquire (if it had the funds).
  • The asset is held on trust for the SMSF using a security trust (known as a security custodian).
  • The SMSF acquires a beneficial interest in the asset from the outset.
  • The SMSF has the right to acquire legal title from the security trustee upon making all loan repayments.
  • The lender must only have limited recourse against one particular asset. This means that in the event of a loan default, the lender must not be able to claim any other assets of the fund.
  • Each borrowing arrangement can only be for a “single acquirable asset”. In the case of strata title or subdivisions, each title is considered a separate asset.

Why don’t most banks lend to super funds?

The majority of lenders do not lend to super funds to buy investment properties because of the smaller size of the market, the complexity of trust loans and because the lender’s recourse is limited to the asset itself.

What does this mean?

To a lender it is more work, for a higher risk loan with a lower profit.

However not every lender sees it the same way!

Some lenders will even allow discounted residential loans to be used by super funds.

To find out which lenders offer the best features, please contact us. Our mortgage brokers know which lenders have the most competitive SMSF loan packages around.

Which banks have loans for SMSF trusts?

The major banks have not all decided to lend to super funds, leaving many bank customers unable to obtain investment loans for their Self-Managed Super Fund without seeking out a specialist broker.

We know which lenders can help with your residential or commercial property investment. Please enquire online or contact us on 1300 889 743 to find out how much you can borrow.

When should I apply for an SMSF loan?

We recommend that you apply for the loan at least two weeks before you begin looking for a property.

This process can be expedited if required, however it is always best to allow additional time to avoid disappointment.

Thinking of applying? Fill in our free assessment form or call us today on 1300 889 743 to speak to one of our expert mortgage brokers who specialises in SMSF trust loans.

How long does it take to get an approval?

Borrowing in an SMSF is far more complicated than applying for a normal home loan!

We find that many of our customers take around a week to collate the documents required to apply for the loan, and then it often takes banks another week to assess and accept the pre-approval application.

How will the loan be structured?

The loan is made out to the trustee of the SMSF in its capacity as trustee with the security custodian as mortgagor.

The lender has limited recourse and if the loan is in default, they have no ability to claim the other assets held by the trust.

Some lenders require guarantees from the members of the superannuation fund, however the guarantee is modified to ensure guarantors do not have recourse to the super trustee in the event that there is a default on payment under the guarantee.

Other lenders do not require personal guarantees from the members of the superannuation fund, particularly if you’re borrowing 60% of the property or less.

This is more common with high net worth individuals who have large SMSF balances or can come up with a larger deposit.

Can I get low interest rates?

It really depends on the lender that you apply with. There are large differences in pricing between the major lenders.

You are likely to pay a significantly higher rate if you only talk to your current bank.

Are there no deposit SMSF loans?

It’s a common misconception that you don’t need a deposit to buy a property in your SMSF.

In actual fact you need a minimum of 24% to 25% of the purchase price to cover your 20% deposit and the other costs such as stamp duty. So why do people say that you don’t need a deposit?

The reason is that your existing superannuation can be your deposit. If you have $100,000 in a managed super fund then you can move this to your SMSF and use it as a deposit to buy a property.

Effectively this means that you may not need to save a deposit in your own name like you would for a traditional investment property purchased outside of your super fund.

Do banks look at the beneficiaries?

For new trusts, some lenders will look at the current income of the trust beneficiaries, the previous super contributions they have been making and their new proposed super contributions.

Their loan can be assessed based on their proposed super contributions if they are within the maximum amounts allowed by the ATO and if they can afford these contributions without hardship.

Lenders know the maximum amounts that you are allowed to make as concessional and non-concessional contributions. These limits can change from year to year.

They will decline loan applications that require contributions in excess of these amounts to prove your SMSF‘s ability to repay the debt.

Will the lender accept my super contributions?

If you are close to the retirement age then the lender may not accept your super contributions in their assessment.

If you no longer have a personal income then of course your super contributions will cease.

In this case, the lender may shorten the loan term or reduce the amount of the loan so that the rent income can cover the repayments.

Will the lender accept other forms of income?

Some lenders are more flexible than others, however there are many banks that will not accept income from shares or interest from the current assets of your trust.

If you are selling these assets to provide the deposit to purchase the property then that income cannot be included in the lender’s assessment.

Want to know if the banks will include your income? Speak to us on 1300 889 743 or fill in our free assessment form today and one of our expert mortgage brokers will get back to you.

Can my SMSF buy a property from my personal portfolio?

Your SMSF can buy a commercial property that you already own, however your fund cannot buy a residential property that is owned by you or a related party.

The penalties for getting it wrong could include paying a large percentage of your superannuation fund balance as penalty tax – so it is best to get good advice from the outset.

We recommend that you discuss any potential tax implications of transferring a property from your name into your SMSF with an accountant that specialises in Self-Managed Superannuation Funds.

How do I apply for an SMSF loan?

There are few mortgage brokers or bank managers that understand Self-Managed Super Funds (SMSF), and even fewer who are experts in lending to them.

By using our services, you can get the best advice for your SMSF trust loan.

Please call us on 1300 889 743 or fill in our free assessment form to discuss your loan with one of our mortgage brokers.

What to consider before setting up an SMSF

Setting up an SMSF is a big decision requiring lots of thought and thorough research.

Determine whether it meets your needs by assessing the following considerations:

  • Will it save you money?: there are many fees involved in managing an SMSF. Consider how much you actually have as retirement savings and whether it is financially sound to set up an SMSF. You can start by comparing the accounting and audit fees costs of an SMSF against the 1-2% charged by a standard retail super fund.
  • What benefits will you lose?: you are likely to have many benefits and options included in an employer provided super fund. However, to receive the same benefits under an SMSF, you would have to organise these yourself. The most common benefit is cheaper life insurance. However you may find that many public super funds can transfer the insurance at the same rate into your own name.
  • Can you invest your super funds effectively?: when you are part of an employer provided super fund, the money is managed and invested by professionals with specialised knowledge. If you cannot make good investment decisions, you will not be maximising the returns on your funds or managing your wealth effectively. Generally, SMSFs are best suited to those who have particular personal investment experience.
  • Losing funds: if you were to lose any money there would be no way to reclaim those funds. This is unlike the compensation available under other super funds.
  • Are you well informed and have the time to manage the SMSF?: you need to know about all the legislation, regulation and taxation requirements you are expected to meet. It is also important to have knowledge of the investment market. If you believe that you could not effectively manage your super fund, then you need to speak to experts and seek specialised advice. Accountants with specialist SMSF knowledge can assist you, but the responsibility ultimately falls upon the trustee.

Setting up an SMSF

There are several components involved in setting up a Self-Managed Super Fund. Every SMSF needs to be made in accordance with regulation and applicable legislation.

As with any new entity, there are also Australian Taxation Office (ATO) reporting requirements.

If you are thinking of setting up an SMSF to manage your superannuation savings, you need to:

  • Choose a name for the fund and speak to your accountant or adviser to help you set up the correct trustee and trust structure to fit your needs.
  • Prepare an investment strategy.
  • Apply for the trust to be regulated, obtain your Tax File Number and Australian Business Number (ABN). These three applications can be made at the same time.
  • Establish a bank account. Many banks will require you to provide them with certified copies of the signed trust deed, tax file number certificate and business number certificate before you open an account.
  • Contact your old super fund to rollover you current member balance. This can take from 2 weeks to 2 months depending on the fund. You will most likely be required to forward them certified copies of the signed trust deed and a letter from the trustee.

SMSF features

When you set up an SMSF, you must manage it according to the rules set out in your trust deed.

Since the purpose of an SMSF is to provide retirement benefits to members, the rules of the fund must reflect this.

The following is a list of important facets of an SMSF:

  • Manage the fund’s investments: all investments should be managed for the benefit of the fund members and personal financial affairs or interests should not be incorporated in any way. These must be kept separate. The ATO has strict rules concerning asset ownership with all assets required to be held in the full legal name of the SMSF.
  • Contributions from fund members: these can be accepted, but there are some restrictions in place, depending on the age of the member and their contribution caps. These caps change every year and there are penalties for over-contributing, so it is best to carefully plan any extra contributions.
  • Administration: If you are the trustee of the super fund, you will have to ensure that you meet all reporting requirements and maintain records of the fund’s undertakings. An accountant can assist you with the annual income tax, reports and audit.
  • Access to the fund: members will be eligible to receive super funds once they reach the ‘preservation age’, retire or meet any other conditions of release. Generally, it is very hard to touch your super before reaching the required age unless you are experiencing severe financial hardship.
  • Tax: super income is generally taxed at a rate of 15%. However higher rates may apply if you receive “special income” from investments in entities related to you or if you receive a notice of non-compliance for breaching the super fund rules.

Rules relating to Self-Managed Super Funds

There are special rules governing how super funds must be run:

  • The fund must always be run with the sole purpose of providing retirement benefits.
  • You cannot use an SMSF to gain early and improper access to superannuation.
  • SMSFs can now borrow as long as certain requirements have been met.
  • The SMSF trustee can either be a company owned by all members or all members as individual trustees.
  • An SMSF can have between one to four members.
  • The SMSF must always maintain and follow its investment strategy.
  • The trustee must ensure that the SMSF complies with the Australian Taxation Office (ATO) regulations and guidelines.

Avoid double stamp duty

Stamp duty will be payable on the initial transfer from the property vendor. What most people don’t know is that with some banks the security custodian structure is different, so the transfer of title upon completion of the loan may also attract additional stamp duty charges!

Some banks require that you use their security custodian (Pty Ltd company), to hold the property on trust for your SMSF.

This means that when you pay off the property, you may have to pay additional stamp duty to transfer legal title to the investment property, from the custodian to the SMSF trustee.

You could end up paying thousands of dollars in tax, simply because you set up your SMSF loan with the wrong bank!

SMSF loans and stamp duty charges are complicated, so please confirm the legal structure of your SMSF loan with your accountant.

Tips for managing an SMSF

Here are a few things to remember when starting an SMSF:

  • Make sure that you fulfill all your administrative obligations, including record keeping and taxation.
  • Enlist the services of an auditor as required by the ATO.
  • Prepare all financial statements and maintain good records.
  • Know the law so that you can comply with the ATO and government regulations.
  • Never enter into any commercial or financial arrangements that involve your SMSF without first seeking professional advice.
  • Do not access your SMSF unless you have met all conditions. It is illegal to prematurely access your super fund and there can be heavy penalties for the fund member and the fund.

Download SMSF loan document checklist

SMSF loan checklist

On 31 July 2018, Westpac and its subsidiaries St George, Bank of Melbourne and BankSA stopped offering SMSF loans.

Luckily, we have a number of other lenders on our panel that we can apply with so you can purchase a residential or commercial property for your self managed super fund.

Speak to a professional finance advisor

To ensure that you are complying with all of the regulations, speak to a tax agent who can offer you specialist taxation and financial advice.

Make sure you read all information available and access the relevant resources so that you are fully informed.

You are responsible for your SMSF so it is important that you adhere to the ATO rules.

Getting the right advice means that you will have the appropriate structure for your SMSF trust loan, minimising any legal issues.

  • Wigfrid

    I’m unable to provide my up to date financials due to being on income protection benefits. The bank we were talking to doesn’t recognise income protection as income. I’m 60 and the wife is 59. We’ve got loads of money in super and we just need to borrow 50% of the purchase value. Help!

  • Hi, we can help with this. We have some lenders that can accept income protection insurance benefits as a source of income. Also, we have others that can consider a ‘self-supporting’ SMSF where the rent is sufficient to pay the loan. We’d just need to have a look at all of the details.

  • S, Caitlyn

    I work as a automobile sales associate in Adelaide. I earn $55,000 annually but I do not have much savings. I recently finished paying off a personal loan and now I want to buy a house as an investment property. I was wondering if I can use my superannuation funds. Please help me out.

  • Hi Caitlyn, yes, we’d need to know more about your situation so please call us on 1300 889 743 or enquire online by clicking on the orange “Get a free assessment” button so you can discuss your situation and loan needs with one of our SMSF investment loan specialists.

  • Laxus, T

    I want to get an SMSF commercial loan for a rural property. Is this possible?

  • Hey Laxus, T.

    Yes, it is possible but it will depend on the size, location and the use of the property. It will be assessed on a case by case basis. Most banks would not consider rural properties for an SMSF commercial loan but we have a few specialised SMSF lenders that can help. Please call us on 1300 889 743 to discuss.

  • Jackie

    Where can I borrow 80% LVR for a commercial property with my SMS? I am in Victoria. thanks

  • Hi Jackie,

    Normally we can lend a max of 70% for commercial SMSF properties. Higher than that would be by exception for low risk loans. We’d have to negotiate with out lenders to find out if that’s a possibility.

    The type of commercial property, location in Vic, liquidity of your SMSF, the size of the loan and your income would all be considered.

  • L. Bickford

    We are looking to get a SMSF loan, and I have more than $450,000 in my Super. Both my wife and I have PAYG jobs. The property we want to buy is residential with 12 acres and is not income producing. We want it for an investment so can Home Loan Experts help help us?

  • Hi L. Bickford,

    Yes, we can help you with this. Because 12 acres is just under 5 hectares, it would not be acceptable to all lenders but there are a handful of lenders who can accept it. Judging by the amount you have in super, you’d meet the liquidity requirements of most lenders quite easily. The location, if there is a house on the land and your personal circumstances will all need to be considered. Please call us on 1300 889 743 if you’d like us to complete a full assessment.

  • Tristan

    Can you tell me what an LRBA is?

  • Hello Tristan,

    A Limited Recourse Borrowing Arrangement (LRBA) is basically where the lender can only take recourse against the security itself. So if they sold the property and had made a loss then they can’t try to sell other assets in the SMSF such as shares or cash. In some cases, they can also take recourse against the assets of the members of the fund that are outside of the SMSF such as their home or investment properties in their own name. They can do this as many lenders require a personal guarantee from the members of the fund.

  • Harkinson720

    Am I allowed to sell commercial property that I own with my SMSF?

  • Hi there, yes, you are allowed to sell commercial property that you already own to your SMSF (i.e. non-arms length transactions). However, you can’t do this with residential properties. This is why there are many business owners who have moved their business premises to their SMSF.

  • HunterK

    What are some of the restrictions when it comes to low doc SMSF loans?

  • Hi, generally with a low doc SMSF loan, you’ll be limited to borrowing 70% of the property value, buying a property that you intend to live in is not accepted and you can’t sell a residential property that you or a related party owns to your SMSF. There may be other restrictions too and you can check out our SMSF low doc loan page to learn more:

  • mankis

    My SMSF is newly registered but I want to use it to borrow at least 60% to buy an investment property. I can provide full financials. This should be possible, right?

  • Hey mankis, if you can meet the servicing requirements of the loan as well as standard bank lending criteria then you may be able to borrow up to 70% LVR. However, banks may identify some potential credit issues that can create problems so please discuss this with an expert mortgage broker beforehand. You can call 1300 889 743 to speak with one of ours.

  • Rebekah

    I want to purchase a property to live in that has a flat attached, I want to live in the main property but rent out the adjoining flat. Can I use some of my super to fund the deposit?

  • Hi Rebekah
    Unfortunately you cannot buy a property in your SMSF if you want to live in it. You cannot release funds from your super as a deposit until you are close to retirement.

    You should consider a guarantor loan

  • Shashi

    i have a SMSF property with value of 800k and outstanding loan of 165k. Can I use the equity to purchase 2nd property?

  • Hi Shashi
    Yes, you can use the equity in your property to help you buy a second property. By unlocking this untapped wealth, you may be able to use it as a deposit against a mortgage, to take out a line of credit, as a deposit bond, and even to renovate an existing property. However, there are some traps that you should avoid so please check out this page to find out about these:

  • Dang

    Why is it that construction finance is not available through SMSF lending? Any specific reason to this?

  • Hi
    That’s because construction loans are generally two loans combined into one. The first is the land loan and then the cost of the construction. Under the SIS Act, SMSF trustees are only permitted to purchase a “single acquirable asset” for their SMSF. With a construction loan, however, you first need finance to buy the vacant land and then finance to build the home. Firstly, you cannot buy a piece of vacant land for SMSF. Secondly, the construction loan is essentially “improving” the asset (the vacant land) with the building of a property. This is not permitted under 67B of the SIS Act.

  • Alen Damjanovic

    Are there still any lenders that would do 80% LVR for SMSF residential loans without LMI and no liquidity and minimum balance requirement?

  • Hi Alen
    Yes however your SMSF trust may need to be amended to allow us to set it up in a structure that doesn’t have liquidity requirements. That may cost up to $5k to amend but you’ll also get a much lower rate (unit trust rates not SMSF rates).
    Call us tomorrow on 1300889743 and ask for Raul and he can assist.

  • Sally Pring

    hi. I notice you have said equity can’t be released in a SMSF property. We own mortgage free property in our super fund now. We are both 63. We would like funds to use. Can we get a mortgage on one or more properties already in our super fund? Thanks

  • Hi Sally
    Unfortunately no you can’t. You may need to sell the property to access the equity.

  • Anon Amous


    I am looking to buy a rural property through my SMSF to lease out for primary production. The property has no dwelling (land only) and the lease will be at market rates and arms length (my business may lease it, or another business depending on market rates).

    I have $400K cash in my SMSF account for this purpose (there is additional money in the account for other investments) with a supporting strategy of buying property. Will lender consider rural properties under a SMSF?


  • Hi Paul,
    We haven’t financed an income producing rural property through an SMSF recently so we’d have to check the policy. However I expect you can borrow up to 50% of the land value. I’d recommend that you check with your accountant to make sure that your SMSF is allowed to buy a farm and rent it to your own business. There’s a lot of regulations and we aren’t experts in the regulations, just the lending.

  • Anon Amous

    Thanks, yes I have confirmed that a business that I own (as a director) can lease a property from my own SMSF. The legislation allows for it as long as it is at arms length and that I do not dwell on the premises.

  • How much are you looking to spend on a property? And is a loan for 50% of the value ok or do you need more?

  • Anon Amous


    sorry for the delay, yes 50% is OK. I am in the process of finalizing some legals on the SMSF before taking the next step (was just waiting for the new financial year).

  • Hi
    As this is a complex transaction I’d strongly recommend that we investigate your options before you set up the SMSF. Otherwise you risk paying the set up costs for no benefit.
    I’ll email you and cc one of the SMSF experts in our office.

  • CG78

    Hi there,
    I currently have approx $380K in an employer defined super scheme. I am just wondering what my options are (do I transfer all or some of this) to a SMSF to enable purchasing power for an investment property? Also, can I keep super payments going into my defined benefit scheme or does everything need to roll over elsewhere?

  • Hi there,
    We can’t advise on SMSF set up and contributions only on SMSF loans.
    Usually when most people set up a SMSF they make all of their contributions to the SMSF rather than another scheme.
    FYI the amount you have in super is sufficient for you to buy a property in your SMSF.

  • Pom

    Hi, I’m self-employed but my wife works as a receptionist. We wanted to squirrel away a littleextra into super for retirement purposes but she’s 52 and I heard you can contribute a little extra without getting into trouble with the tax office if you’re over 50. Is that true?

  • Hi Pom,
    If it’s pre-tax or concessional contributions you’re talking about, this was reduced to $25,000 on 1 July 2017, no matter your wife’s age. Previously, the cap was $35,000 for those over 50. We recommend you speak to a qualified professional for tax or investment advice before making any decisions as we’re only experts in SMSF lending.

  • 1nick46

    Hi, I’d like to learn if there have been any changes regarding the additional CGT cap for smaller business owners anytime recently.

  • Hello nick,
    Although there have been changes to some of the SMSF policies, there are no changes made to the one you are referring you.

  • Adeeb

    Hi i want to set up smsf and my own contributions is now $65000 can i buy a property between $100000 to $250000 ? Can i buy a vacant land or acreage? Can i pay my property repayment with my ongoing super money? As if i buy a land i have to pay monthly repayment, plz let me know, if i can how can i set up smsf and do u help with tha

  • Hi Adeeb,
    Unfortunately most lenders have a minimum fund size requirement to help with an SMSF loan. Also with the fees of having an SMSF it just isn’t worth it if you have less than approx $200k in super.

  • Adeeb

    If any lenders agree to guve coz i speak with a bank they told me they can so can i buy is it lawfully in smsf law? And if can i buy vacant land or acreage? And can i give this repayment with my ongoing super money plz let me know,

  • Hi Adeeb,
    We’re not experts in SMSF law however our understanding is that you could buy vacant land however to build on it you would need to fund that from your SMSF funds (i.e. no loan). It’s best to check with an expert in SMSF legislation before proceeding.
    Yes repayments can be made from your employer / personal super contributions.

  • Adeeb

    Thanks a lot do u know anywhere that i can contact with set up my smsf or any advise

  • Sorry I don’t know anyone that can assist. However you can likely just ask your local accountant.

  • Vishal

    My SMSF was established more than a year ago and I’ve lodged the tax returns. I just wanted to confirm,can we get a SMSF loan with one year financials?

  • Most lenders actually require you to have financials for 2 years. Nonetheless, one of our lenders will accept newly-established SMSF as long as you can provide financials of the retail or industry super fund that you’re rolling over. By using alternative income evidence or alt docs, such as an accountant’s letter, some lenders will approve your application. You can get more information regarding this here

  • Zender

    My husband is going to establish a SMSF and he will be looking to borrow from that a deposit for either an established house or for a block of land, and the getting the remainder of money from a bank loan. Can this be done?

  • Hi Zender,
    Firstly, you need to set up your Self Managed Super Fund (SMSF) Trust and as per Australian Tax Organisation (ATO) guidelines. Also, you should have least $200,000 in your trust which can easily be liquidated and for trust maintenance. In addition, you can on purchase an investment property and you could borrow 70-80% of the property value.

  • WalterM

    I was thinking of getting an SMSF loan but learned that many banks stopped SMSF lending. Are there any major lenders still doing SMSF loans?

  • Hi WalterM,
    Unfortunately, with CBA’s recent announcement to pull out of SMSF lending, all major lenders have stopped SMSF lending, at least for time being. This is because of the smaller size of the market, the complexity of trust loans and because of the Australian Securities and Investments Commission (ASIC)’s clampdown on investment lending (a product of the Royal Commission into the banking and superannuation sector). Still, we know some non-major lenders who do lend to SMSFs including Macquarie Bank. Call us on 1300 889 743 or complete our free assessment form and find out more about these banks.

  • Richie

    Hi, most banks have pulled out of SMSF lending, even Macquarie stopped offering SMSF loans, why is that?

  • Hi Richie,
    In short, banks are wary of the negative reputation surrounding it, the complexity and the comparatively low volume of SMSF loans. During the Royal Commission hearings, there were a few case studies where the customers were given poor financial advice. In particular, there are a lot of people who aren’t that wealthy who are purchasing properties in their SMSF. A lot of people underestimated the cost of managing the expenses of a self-managed superannuation fund. I mean if you have millions in super then sure it makes sense, however having $200k in super may not be a good deal for you.

    Customers also didn’t know about SMSF rules and so, accidentally broke them. For example, you can’t live in your investment property that’s in your SMSF. Again, banks are scared in regards to their reputation. Pretty much all the major lenders have stopped doing SMSF lending including Macquarie. A range of non-bank lenders still offer SMSF loans and that’s who we’re working with.

  • Rainn

    Hi, my 2018 tax return doesn’t show my super contribution due to an error while lodging tax returns. However, we have a statement from my Super (Hesta) which shows the contributions. Would this be acceptable to SMSF lenders?

  • Hi Rainn,
    Yes, it should be acceptable to a few SMSF lenders as long as you can provide a statement from your Super (Hesta) showing the contributions have been made.