SMSF Borrowing Power

SMSF loan details

Loan amount ?
Property value ?
Which type of property are you buying?
Rate type
Have you setup your SMSF already?
Which type of trustee does your SMSF have? ?
Number of applicants ?

Your income details

What is your base income (p.a.)? ?
Applicant 1
Your additional super contributions (p.a.) ?
Applicant 1
Rent income for your new property (per week) ?
Do you already own a property in your SMSF?
Will you have more than $50,000 in shares or cash left in your SMSF after buying this property?

Contact a mortgage broker

Talk to one of our mortgage brokers about your situation: Yes No  

Borrowing in an SMSF

Are you buying a property in your super fund?

The banks use different methods of assessing the borrowing power of your fund.

By changing your loan structure or applying with the right lender you can significantly increase your maximum loan size.

Which income types do banks assess?

The banks will assess your:

  • Employer superannuation contributions.
  • Additional voluntary contributions.
  • Rent income on the new investment property.
  • SMSF dividend income (conditions apply).
  • SMSF interest income (conditions apply).

Some lenders will only accept 80% of all of the income in your fund, whereas others will use 100% of your income. All lenders assess only 80% of your rent income to allow for expenses such as management fees and repairs.

This is why there can be big differences between the maximum loans sizes offered by different banks.

Please call us on 1300 889 743 or enquire online and we will work out which lender can lend you the most, including if you’d like to get an SMSF low doc loan.

How is dividend and interest income assessed?

If you are buying a property then you are going to need funds to pay for the deposit as well as costs such as stamp duty.

Many people use shares or other investment funds held in their SMSF as their deposit, therefore they no longer receive the dividends and interest income.

We can accept these income types only if there will be money or shares left in your SMSF after the property has been purchased.

Are my personal debts assessed?

If your employer contributions are sufficient to service the debt then in many cases we do not need to assess your personal financial position.

However if you need to make additional contributions to be able to make the repayments then we will need to complete a full assessment of your personal situation.

What are limited borrowing recourse arrangements?

Limited Borrowing Recourse Arrangements (LRBA) for self-managed superannuation funds (SMSFs) were given the green light by the Australian government as a way for SMSF trustees to borrow money to buy property.

The main benefit is that in the event that you default on your mortgage, you are liable to sell the single (or multiple) properties you purchased while the other assets in your SMSF are protected.

You can learn more no our What Is A Limited Recourse Loan? page.

What if I buy multiple properties?

You can buy as many properties as you like in your SMSF. To be precise, as many as you can afford!

The method of assessing existing investment property loans is complicated and so has been left out of this calculator. Our mortgage brokers can complete this assessment for you.

As a general rule most lenders will use an assessment rate which is 1.5% to 2.0% higher than the actual interest rate.

Some will assess your existing debts over the actual term using principal and interest repayments whereas others will use the actual repayments.

These differences mean that if your super fund already has investment properties then there can be vast differences between your borrowing capacity with different banks.

Do you need help with a SMSF mortgage?

Our mortgage brokers are experts in SMSF loans and know which lenders will best suit your needs.

Please call us on 1300 889 743 or enquire online and we will complete a serviceability calculation with several of our lenders to find out your maximum loan amount.

  • Marie

    Hi, can I buy owner occupied property with my super?

  • Hi Marie, lenders usually don’t lend you to buy an investment property through your SMSF.

  • Heney

    Does your calculator take into account penalty fees that may be incurred when we make large super contributions?

  • Hey Heney,

    Unfortunately, our calculator does not take these higher taxes into account. However, we can complete a manual assessment for you.

  • Stephen Moore

    If I buy a residential property(house) through the SMSF and the business which I own rents that property, Is the property and loan considered residential or commercial and how will this effect the LVR?

  • Hi Stephen

    While this is a little unusual it is likely that we can get this assessed as residential unless the property has significant commercial modifications. If you could easily rent it out as it is now to a family then it would be considered to be residential.

    With SMSF loans the banks are really finicky about the property itself. So best for you to discuss this in detail with our brokers before you proceed to far with purchasing the property. Our ph# is 1300 889 743.

  • typhoon

    What factors influence our borrowing power when it comes to an investment property finance?

  • Generally, when assessing your loan application, lenders will take into account:
    – Your annual income and monthly expenses,
    – The type of loan that you’re applying for,
    – The current interest rate,
    – The type of repayment, usually principal or principal and interest (P&I),
    – The loan term, and
    – Estimated monthly repayments you’ll be making.

  • Zac

    I’m actually a NZ citizen looking to borrow with my wife who is Japanese. We’re living in Australia right now and she’s on a 461 visa. Can we borrow 90%? I do have SMSF but I want to know if I can borrow without that.

  • Hi Zac, we have a lender in mind that’s likely to be able to help you with your mortgage. Please call us on 1300 889 743 to properly discuss your situation and loan needs with one of our experts.

  • Adam Griffiths

    can i pay super into my existing mortgage

  • Hi Adam,
    As a general rule you can only access your super to put into your mortgage if you’re close to retirement age or if you are in financial hardship. We can’t advise on this as we’re only experts in lending to SMSFs.

  • Peter Gray

    Hi, I know that most lenders have a maximum LVR around 80% for SMSF, but can you access any lenders that would be prepared to go to 90%?

  • Hi Peter,
    There are none. You may be able to lend your SMSF 10% to top up a loan however you’d need to get financial advice before doing this as I am not sure if it is permitted or not. You could then borrow the 10% against a property that you own in your name.

  • Greyish

    I’m planning to get a loan from my SMSF. How long does it take to get an approval from a bank?

  • Hi Greyish,
    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. Please call us today on 1300 889 743 to speak to one of our expert mortgage brokers who specialises in SMSF trust loans.

  • Sara Cruise

    if I have 115k in my super, what percentage am I able to invest in a property and what percentage of a loan do I need to have to do it?

  • Hi Sara
    It’s usually not worth it to set up an SMSF and invest in property unless you have $200k – $300k in super. The reason for this is that the set up costs, the running costs and the liquidity requirements of lenders would mean that it just wouldn’t be a great investment. We recommend that you seek financial advice as this is a ‘general rule’ only.
    As you can typically borrow 70% – 80% using an SMSF and allowing 5% for costs such as stamp duty. Then $115k would allow you to buy a property for up to $380,000 approx.

  • Carter

    Hi, I set up my SMSF a few years ago but the funds are yet to be rolled over from my super. My last year’s super contribution was the lowest of the last three years, so, I’m trying to ascertain which year’s superannuation contribution do lenders consider in servicing?

  • Hi Carter,
    If previous year’s lowest super contribution is enough for servicing, then that should be acceptable to some lenders. You would have to provide tax returns to show the super contribution(s).

  • David Tomlinson

    Hi guys,
    I am being ripped off by my current lender (AMP)
    Basic figures and details so we can work out if we are wasting each others time:
    2 x duplexes and 1 x villa – 3 x separate mortgages totalling circa $820K – latest property valuations were $1,500K

    annual mortgage payments = circa $62K
    annual income = circa $82K

    Any ideas on whether I can move the portfolio to a lender charging a reasonable rate ?

  • David Tomlinson

    Guys, can you call back as I’ve lost your reply

  • Hi David,
    Please call us on 1300 889 743 to speak with one of our specialist mortgage brokers or fill in our online enquiry form here: to discuss your situation.