What is SMSF Loan?
An SMSF loan is a home loan taken out by a Self-Managed Super Fund to purchase an investment property — structured as a Limited Recourse Borrowing Arrangement (LRBA). The property is held in a bare trust for the fund until the loan is paid off.
Why it matters for you
SMSF lending has strict rules: the property must be solely for investment (you can't live in it), can't be bought from related parties, and repairs/improvements are restricted. Rates are higher (0.50%+ above standard investment loans), LVRs lower (typically capped at 70–80%), and fewer lenders offer them. Always get specialist tax and legal advice before proceeding.
Last updated: April 2026