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Build Wealth Through Your Super — The Right Way

Strategic SMSF property lending to help you invest with confidence and compliance.

Speak to an SMSF Loan Specialist

Introduction – SMSF Lending

Using your superannuation to invest in property can be a powerful long-term strategy but SMSF lending is one of the most tightly regulated areas of finance in Australia. It’s not just about getting approved; it’s about structuring the loan correctly, so it remains compliant, tax-effective and sustainable over the long term.

At Grange Finance, we specialise in SMSF loans and SMSF property finance. We work closely with trustees, accountants and advisers to ensure every loan is structured properly from day one because fixing mistakes later in SMSF lending is often expensive or impossible.

Who This Service Is For

This service is designed for individuals who have a Self-Managed Super Fund and are considering property as part of their long-term retirement strategy.

If you’re an SMSF trustee looking to purchase an investment property, we help you understand what’s possible, what’s permitted, and what lenders will realistically approve.

It’s also suitable for business owners who want to purchase their own commercial premises through their SMSF, leasing the property back to their business under compliant arrangements.

We also work with existing SMSFs that already hold property and are looking to refinance, review loan terms, or restructure lending as the fund grows.

What Is an SMSF Loan

An SMSF loan is a specialised type of property loan that allows a Self-Managed Super Fund to borrow money to purchase a property — typically under a Limited Recourse Borrowing Arrangement (LRBA).

Under an LRBA:

  • The property is held in a separate holding trust
  • The lender’s security is limited to the purchased property only
  • The SMSF’s other assets are protected

SMSF loans are very different from standard home loans. They involve stricter lending criteria, higher deposits, and additional legal structures; which is why experience matters.

How SMSF Property Loans Work

SMSF property loans follow a structured and highly regulated process:

  • SMSF Setup & Review –
    The fund must be correctly established and compliant.
  • Property Selection –
    The property must meet SMSF investment rules.
  • Loan Structure (LRBA) –
    A holding trust is created to purchase the property.
  • Lender Assessment –
    Lenders assess fund balances, contributions, rental income and trustee profile.
  • Settlement & Ongoing Compliance –
    Loan repayments are made from the SMSF, not personal accounts.

We guide you through every step, coordinating with legal and accounting professionals to ensure nothing is missed.

Investment Property Rules & Requirements

SMSF property investment comes with strict rules, including:

  • The property must meet the sole purpose test
  • Residential property cannot be lived in by members or relatives
  • Commercial property may be leased back to a related business (if compliant)
  • Loan repayments must come from the SMSF
  • Improvements and renovations are tightly restricted

Understanding these rules upfront prevents costly compliance breaches later.

Risks & Compliance Considerations

SMSF lending carries risks that must be managed carefully:

  • Higher deposit requirements than standard loans
  • Limited lender options compared to traditional mortgages
  • Strict compliance and audit obligations
  • Changes to legislation or lending policy
  • Cash flow pressure if contributions or rental income fall

Our role is to ensure SMSF loans are conservative, compliant and sustainable — not aggressive or risky.

Why Choose Us for SMSF Loans

✔ SMSF Lending Specialists

We understand SMSF legislation, lender policy and real-world structuring.

✔ Access to Specialist SMSF Lenders

We work with lenders who actively support SMSF borrowing.

✔ Strategy-First Approach

We ensure SMSF loans align with retirement goals, not short-term gains.

✔ End-to-End Support

From pre-approval to settlement and beyond, we stay involved.

FAQs

  • 1. Can my SMSF borrow to buy property?

    Yes — through a compliant Limited Recourse Borrowing Arrangement.

  • 2. How much deposit is required for an SMSF loan?

    Typically, higher than standard loans, often 30–40% depending on the property.

  • 3. Can I live in an SMSF-owned property?

    No — residential properties cannot be occupied by members or relatives.

  • 4. Can my business rent property owned by my SMSF?

    Yes — for commercial property, under strict market-rate conditions.

  • 5. Are SMSF loans more expensive than normal home loans?

    Generally, yes, due to higher risk and compliance requirements.