What is a self-managed super fund?
Self-managed super fund lending is when your Self-Managed Super Fund (SMSF) takes out a loan to buy an investment property – either residential or commercial using the money inside your super.
Instead of investing your super in shares or managed funds, you can use it to buy property, but the rules are a little different than with a regular home loan.
How Self-Managed Super Fund property loans works:
- Your SMSF is the borrower, not you personally.
- The property is held in a separate structure called a bare trust, which means your personal assets are protected.
- The loan must be a Limited Recourse Borrowing Arrangement (LRBA), this means the lender can only claim the property if the loan isn’t repaid, not the rest of your super.
- The property must be for investment purposes only.
- All income (like rent) and expenses (e.g. loan repayments) must go in and out of the SMSF, not your personal bank account.
What are the benefits of an SMSF home loan?
For the right person and circumstances, it could:
Grow retirement savings through rental income and capital growth
Diversify your super away from shares or managed funds
Allow you to take more control over your super investments
Potentially access tax benefits over the long term
How we can help you
- We’ll check if your SMSF qualifies for a loan, explain the structure, and estimate how much your fund could borrow based on your balance and contributions.
- We will outline current SMSF loan options best suited for you. Rates and features can differ significantly.
- We’ll ensure your bare trust and loan setup meet both lender and ATO requirements – avoiding common mistakes that could delay approval or cause compliance issues later.
Get in touch with us at Caroline Springs
Operating from Caroline Springs 3023