Like to use your SMSF to invest in property?
Borrowing through an SMSF is possible, but the rules and lending requirements differ from a standard investment loan.
Our business-savvy lenders will help you understand what you may be able to borrow, what your SMSF needs to qualify and how an SMSF property loan could be structured.
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An SMSF property loan, also known as a Limited Recourse Borrowing Arrangement (LRBA), allows your Self-Managed Super Fund to borrow money to purchase an investment property. The property is held in a separate trust until you repay the loan, at which point ownership transfers to the SMSF. This structure protects your other super assets if the loan defaults – the lender’s recourse is limited to the property itself.
The ATO strictly regulates SMSF property loans, and they must comply with superannuation legislation. Getting the structure right from the start is critical – which is why working with an experienced SMSF mortgage broker in Perth is essential.
SMSF loans are assessed differently to standard home loans. Key requirements include:
Most lenders require a 20-30% deposit for residential SMSF loans and 30-35% for commercial
Must be reviewed and confirmed as allowing borrowing
Most lenders will not lend to SMSFs with individual trustees
The property must be genuinely investment-grade and capable of generating rental income
Assessed on the SMSF’s total income including contributions, rental income and investment returns
Not all lenders offer SMSF loans – the panel is smaller than standard lending. At Mogul Capital & Finance, we work with lenders including Macquarie, La Trobe, Pepper Money and others who actively support SMSF borrowers.
We help you refinance your existing residential property through your super, the smart way, by creating a broader strategy and making the loan process seamless and secure.
Leverage your super for long-term commercial gains. With our tailored commercial SMSF loan support, you can invest confidently and within regulations.
We’re a proud Perth-based & people-first company. We listen carefully and use our deep market knowledge to personalise mortgage options that suit your future. From first-time buyers to self-employed borrowers and property investors, we bring clarity, confidence, and smarter lending solutions to every step of the process.
Not quite. The property must meet the ATO’s sole purpose test – meaning it must be held purely for the retirement benefit of fund members. Residential properties cannot be purchased from or rented to related parties. Commercial properties have more flexibility. For example, a business owner can purchase their business premises through their SMSF and pay market rent to the fund.
Most lenders require a minimum of $200,000 in super assets before they’ll consider an SMSF loan application. This ensures the fund has enough liquidity to cover loan repayments, property expenses, and maintain diversification.
No. Residential properties owned by an SMSF cannot be occupied by fund members or their related parties at any time – not even temporarily. Doing so breaches superannuation law and can result in significant ATO penalties.
SMSF loan interest rates are typically 0.5-1.5% higher than standard investment loan rates due to the additional complexity and regulatory requirements. Rates vary significantly between lenders; a mortgage broker can compare current SMSF loan rates across our panel to find the most competitive option for your fund.
Yes, and this is important. While Mogul Capital & Finance handles the lending side of your SMSF property purchase, you’ll also need a licensed financial adviser to advise on whether property is an appropriate investment for your SMSF, and a solicitor or accountant familiar with SMSF structures. We can refer you to trusted professionals in Perth.
