SMSF property lending uses a specific structure called a Limited Recourse Borrowing Arrangement (LRBA). The asset is held in a separate bare trust, the fund makes the repayments, and the lender's recourse is limited to the asset. The structure is precise and the lender pool is small.
What you need to know.
The bare trust structure
SMSF property loans require a bare trust (or custodian trust) to hold the asset during the loan period. Getting this set up correctly from the start avoids expensive problems later.
Limited SMSF lenders
Not many lenders offer SMSF loans. Those that do have specific criteria around fund size, borrower profile, and property type. I know which lenders to approach.
Compliance sits with your SMSF specialists
The sole purpose test and the broader SMSF compliance picture is the responsibility of your SMSF accountant or financial planner, not your broker. I work alongside them, not in their seat.
The loan needs to fit inside the fund
The fund needs sufficient liquidity after the purchase. The rental income and contributions need to service the loan. I'll model the loan side; your accountant or planner handles the fund strategy.
Know Your Numbers
What could you actually borrow?
Run your real numbers before we speak. Live as you type, no commitment, no credit check.
RBA rate update · 6 May 2026 applied
1 · What are you looking to do?
2 · Your details
3 · Properties you already own
4 · Core debts
Banks assess your limit, not your balance, at 3.8% of the limit per month, even if you pay it off each cycle.
Combined monthly repayments on personal and vehicle loans.
5 · Living expenses
I'll use average household living costs unless you enter your own.
Estimate only. Not a credit offer or pre-qualification. Subject to lender criteria, credit assessment, and a full needs analysis. Rental income and existing lending may be assessed differently by different lenders. Get in touch for advice tailored to your situation.
SMSF property lending isn't a one-person job. The strategy and compliance side sits with your SMSF accountant and financial planner. The loan side is mine. I work closely with SMSF specialists to keep all three lanes coordinated.
Written & reviewed by
Rebecca Tickner
Finance Broker, Maxfin · Diploma of Finance & Mortgage Broking Management (FNS50322) · ASIC Credit Rep 571611 · MFAA Member
I built a seven-property portfolio with my partner. I structure clients' finance the same way I run mine.
More about RebeccaInvestor Playbooks
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Different investor, different structure. Pick whichever sounds most like you for the deeper read.