SMSF loans
A self-managed super fund can borrow to buy property under strict rules. We arrange the loan. Your adviser decides whether it suits.
Where we fit
Whether your fund should borrow at all is financial advice, and it must come from a licensed financial adviser and your accountant. Modern Lending does not give that advice. Once the strategy is settled, we find the lender, compare terms and manage the application.
How an SMSF loan works
The fund borrows under a limited recourse borrowing arrangement. The property is held in a separate holding trust, often called a bare trust, until the loan is repaid. If the loan fails, the lender’s claim is limited to that property and not the fund’s other assets. Lenders often ask members for personal guarantees.
What lenders require
- A larger deposit. Maximum loan-to-value ratios are lower than standard loans, commonly 60% to 80% depending on the lender and property type.
- Cash left in the fund after settlement as a liquidity buffer
- A trust deed that allows borrowing, and a compliant bare trust set up before contracts are signed
- Contributions and rent sufficient to cover repayments
Fewer lenders offer SMSF loans, and rates and fees are usually higher.
Refinancing an existing SMSF loan
Many funds are on older, expensive SMSF loans. Refinancing can be worthwhile if the paperwork is kept in order. We compare the lenders still active in this market.
How we handle it
The same four steps on every loan, whatever the size.
Talk
A 20-minute call about what you want to do. No documents needed yet.
Compare
Your scenario priced across 40+ banks, mutuals and non-bank lenders, explained in plain English.
Settle
We package the application, lodge it and chase the lender through to settlement.
Stay sharp
Every year we check your rate against the market, so the loyalty tax never gets a grip.
Questions people ask
Can my SMSF buy my business premises?
Commercial property can be leased to a related business at market rent under the super rules. Since 10 August 2026, SMSFs can no longer use a limited recourse loan to buy residential property. Existing loans are not affected. Confirm with your adviser.
Can the fund renovate the property with borrowed money?
Borrowed funds can generally be used for repairs and maintenance, not improvements that change the asset. Your adviser can confirm what is allowed.
General information, last updated November 2026. Scheme figures, lender policies and duty rates change, so confirm them before you rely on them. Sources: ATO: SMSF limited recourse borrowing, Moneysmart: SMSFs and property.
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Let’s talk about your next move
Twenty minutes on the phone. No documents and no sales pitch.