SMSF loans, placed across a panel of self-managed super fund lenders
A loan for your super fund to buy a single investment property under a compliant LRBA, structured alongside your own adviser, with indicative terms in 1 to 2 weeks.
An SMSF loan lets a complying self-managed super fund buy a single investment property using a Limited Recourse Borrowing Arrangement (LRBA). The asset is held in a separate bare trust, and on default the lender’s recourse is limited to that one title, which protects the rest of the fund. A fund loan tends to price above standard investment lending, and fewer lenders will fund it, so getting the structure and the lender right the first time matters.
Windsor Finance is a finance broker, not a lender. We hold no own capital and approve nothing. We take your file to a panel of banks and non-bank lenders that fund under compliant LRBA structures and place it with the one that fits your fund and the LVR. Windsor arranges SMSF finance only and we refer SMSF strategy to an independent licensed adviser; we do not give superannuation, tax or financial product advice.
Key facts
- Indicative interest rate ~6.5-9% p.a., reflecting the limited-recourse structure and the smaller pool of SMSF lenders
- Loan to value up to around 70% on a residential SMSF and around 65% on commercial security
- Loan amount $150k to $5m, repaid from fund contributions and rental income
- Requires a complying fund, a separate bare trust with a corporate trustee, and recourse limited to the single acquirable asset
| Scenario | Indicative rate | LVR |
|---|---|---|
| Residential security | ~6.5-8.5% p.a.* | ~70% |
| Commercial security | ~7-9% p.a.* | ~65% |
| Business real property | By case* | By case |
Cost calculator
How an SMSF loan works under an LRBA
An SMSF loan works differently from an ordinary mortgage, because the borrower is your fund, not you. Under the LRBA, the fund acquires a single asset, which for property means one title, held on trust by a separate bare trust (a holding trust) with a corporate trustee. The fund keeps the beneficial interest and the right to take legal ownership once the SMSF loan is repaid, and each repayment comes from contributions plus the rent the asset earns. Because recourse is limited to that one title, a default cannot reach the fund’s other investments, which is why lenders set conservative limits on the loan amount they will advance.
What your fund needs in place to qualify
Before a lender will assess the file, the structure has to be right: a complying fund, the bare trust and its corporate trustee established to hold the title, and the facility documented so recourse stays limited to the single asset. SMSFs must meet a liquidity test too, so lenders check what cash the fund holds after the purchase, the contributions and rent that will cover each repayment, and the value of the asset. They also apply the LRBA rules: you generally cannot make capital improvements that change the character of the asset while it sits under the arrangement, and investment properties bought by the fund cannot be acquired from, lived in, or rented by a related party. Get any of this wrong and the application stalls, so we package the file against each lender’s checklist first.
Residential and commercial assets held in super
A fund can use an SMSF to buy an investment in residential or commercial property, and the rules differ by type. A residential rental must be bought at arm’s length and cannot be acquired from, lived in, or rented to a fund member or a relative. Business real property is treated differently: the fund can acquire it from a related party, and it can be leased to a fund member’s business at market rent, which is why buying your own premises inside super is a common way to invest in property through the fund. The loan options narrow with the security type, and the requirements under Australian superannuation law apply to the borrowing throughout. Property investment through a fund is a long-game strategy, so weigh the rental yield against the higher cost of borrowing before you commit.
SMSF loan rates, repayments and refinancing
An SMSF loan rate sits above the rate on a standard investment loan, because the pool of super fund loans is small and the limited-recourse structure carries more work. Indicatively, residential security runs around 6.5% to 8.5% per annum and commercial around 7% to 9%, with the loan amount, the interest rate and the comparison rate confirmed by the lender on application. Read the comparison rate, not just the headline, because the fees and charges around an SMSF home loan, the establishment cost, the bare-trust setup and ongoing audit, lift the true comparison rate above the equivalent owner-occupier home loan. The fund covers each repayment from contributions and rent, and any capital gains on a later sale are taxed inside super at concessional rates rather than in your own name. If your fund already borrows, refinancing an existing SMSF loan to a sharper rate is one of the most common reasons trustees come to us; we compare the panel and model the repayment before placing the case.
What the fund pays across the loan term
The right loan is the one priced and structured for how long the fund will hold. The money to purchase an investment comes with property expenses the fund must meet, council rates, insurance, and maintenance, alongside the SMSF loan repayments. Rent and contributions repay the loan over its term, and the fund can repay it early or refinance when a sharper deal appears. Whether the fund uses SMSF borrowing to buy a residential rental or to invest in commercial premises, the bare trust holds the title until the debt is cleared, at which point the property is owned outright. On a later sale of the property, the proceeds flow back to the fund. We map the property purchases, the loan to buy and the exit before placing the case, so the structure still works on the day the fund sells.
Buying in super vs a standard investment property loan
A fund loan and a standard investment property loan both fund a rental, but the borrower, the structure and the protections differ. Most trustees weigh the two before they buy.
SMSF facility (LRBA)
- The super fund borrows, not you personally
- Held in a separate bare trust with a corporate trustee
- Recourse limited to the single asset on default
- Higher indicative rate, a smaller lender pool
- Repaid from fund contributions plus rent
Standard investment facility
- You borrow in your own name, company or trust
- Held directly by the borrowing entity
- Lender has full recourse to the borrower
- Lower indicative rate, a wider lender panel
- Repaid from your income plus rent
When buying in super fits
Bought at arm's length, not from or rented by a related party.
Acquired from a related party and leased back to the business at market rent.
Move a fund already borrowing to a sharper rate or a more willing lender.
What trustees ask before buying in super
Can my fund actually borrow to buy property? +
Why is the rate higher than a normal facility? +
Does Windsor give SMSF or tax advice? +
Can the fund renovate the property? +
Common questions
What is the SMSF six month rule? +
What LVR can the fund reach? +
What does a lender need to assess the loan? +
Can the fund own the property outright later? +
Can the fund buy my business premises? +
How long does it take? +
Explore finance for your fund
Indicative rates
What residential and commercial security cost inside super, and what moves the pricing.
Read more →Commercial property in super
Business real property in the fund, leasing it back, and how commercial deals are priced.
Read more →How a broker helps
How a broker shortlists lenders and packages the LRBA so the application holds.
Read more →Read the guides
Plain-English guides that sit under this hub. The wider finance guides hub links to every guide we publish.
Get indicative terms in 1 to 2 weeks
Tell us the fund, the property and the amount you need. A broker shortlists lenders and comes back with indicative structures, alongside your own adviser. Structuring and shortlisting cost nothing until you give the go-ahead, and we do not give super, tax or financial advice.