SMSF Lending · Refinancing
The rules changed. Your existing SMSF loan is grandfathered and refinancing is still on the table.
From 10 August 2026, new residential Limited Recourse Borrowing Arrangements ended. If your fund already holds a residential property under an existing LRBA, that arrangement continues... and the legislation expressly preserves refinancing. Most trustees I speak to don't realise that second part.
Last reviewed
Rebecca Tickner
Finance Broker · Maxfin
Sound familiar?
The problems I hear most often.
Your lender has left SMSF lending
Most major banks exited SMSF lending years ago, and more lenders have stepped back around the 2026 changes. When a lender stops writing new SMSF business, the existing book rarely gets much attention... and the rate can drift quietly.
You assumed the new rules locked you in
The headlines said SMSF residential borrowing was banned, so most trustees assume that applies to them too. The legislation is prospective... it restricts new arrangements, and expressly contemplates refinancing existing ones.
Nobody is reviewing the loan
An SMSF loan often sits outside the annual conversation. The accountant handles compliance, the adviser handles strategy, and the loan itself goes unexamined for years while the market moves around it.
How It Works
Five stages. Walked together.
The same client journey from your first call through to settlement... and the loan reviews that follow.
Tap a stage to explore
01.
Discover
- 15-minute discovery call
- Hello Pack lands in your inbox
- Click “Get Started” to begin your Fact Find
02.
Plan
- Your Fact Find returned
- I assess your servicing
- You receive your Game Plan with my recommendation
03.
Apply
- Game Plan signed
- I lodge your application
- We wait... lender may come back with clarifying questions
04.
Approve
- Conditional approval
- Final conditions satisfied (e.g. insurance)
- Formal approval
05.
Settle
- Loan documents signed
- Settlement booked, solicitor takes the lead
- Loan settled!
In Practice
The rules restricted what funds can borrow for next. They didn't lock in what your fund already has... and an SMSF loan nobody is watching is the one worth looking at.
Rebecca Tickner
What you get working with me.
Refinancing is preserved in the legislation
The amendment applies to new arrangements. It does not apply to maintaining or refinancing a borrowing under an arrangement entered into before commencement. The conditions attaching to that are specific, so your SMSF adviser confirms them for your fund.
Some lenders don't require fresh legal advice
Independent legal advice is a lender policy matter, not a universal rule. Some lenders' policies don't require it again on a refinance of an existing arrangement. It varies by lender and by your circumstances, and I'll confirm the position before you commit to anything.
A narrower document set than the original
The bare trust already exists and the arrangement is already documented, so a refinance generally calls for fewer documents than establishing the original LRBA did. What's needed depends on the lender.
Your rate gets examined
A loan sitting with a lender that has stepped back from the market is worth reviewing. Whether a different lender can improve on your current position depends on your circumstances and is subject to lender criteria.
The structure stays intact
A refinance replaces the borrowing. The fund still owns the asset through the same bare trust arrangement, so the structure your accountant set up is not being rebuilt.
Commercial property remains available
The restriction applies to residential property. Business real property, commercial premises your fund buys or already holds, remains borrowable inside an SMSF.
Questions
Frequently asked.
Can I still refinance my SMSF loan after 10 August 2026?
Yes. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 restricts *new* residential LRBAs from 10 August 2026. It is prospective, and it does not apply to maintaining or refinancing a borrowing under an arrangement entered into before commencement. There are specific conditions that must be met for a refinance to stay grandfathered, so your SMSF adviser or accountant should confirm the position for your fund before you proceed.
What actually changed on 10 August 2026?
Section 67A of the Superannuation Industry (Supervision) Act 1993 was amended so that where the asset acquired under an LRBA is real property, it must be business real property. In practice that means new borrowing to buy residential property inside an SMSF is no longer available. The Act received Royal Assent on 26 June 2026 and commenced on the 45th day after.
Does refinancing put my grandfathering at risk?
The legislation is designed to allow existing arrangements to be refinanced. That said, specific rules must be satisfied for the refinance to retain grandfathered treatment, and the detail matters. This is squarely a question for your SMSF adviser or accountant... I'll work alongside them on the lending side, but the fund-side test is theirs to confirm.
Will I need independent legal advice again?
It depends on the lender. Independent legal advice on an SMSF loan is imposed by lender policy, and some lenders' policies don't require it again when refinancing an existing arrangement. Others do. I'll confirm the requirement for the specific lenders in play before you commit to anything.
Can I increase the loan when I refinance?
Increasing the borrowing is a different proposition to replacing it, and it can affect how the arrangement is treated. Do not assume additional borrowing is available... check with your SMSF adviser first, and I'll confirm what the lender will and won't do alongside that.
My lender has stopped writing SMSF loans. Am I stuck with them?
Not necessarily. A lender withdrawing from new SMSF lending doesn't prevent you refinancing to a different lender that is still active in the space, subject to that lender's criteria and your fund's circumstances. This is the most common reason trustees come to me about an existing SMSF loan.
Can my SMSF still buy residential property at all?
Your fund can still purchase residential property outright using its own funds. What changed is the ability to *borrow* to acquire residential property under a new LRBA. Whether an unborrowed purchase suits your fund is a question for your licensed adviser.
What about commercial property in an SMSF?
Unaffected. Business real property is expressly what the amended provision permits, so borrowing to acquire commercial premises inside an SMSF continues... childcare centres, shops, offices, warehouses, consulting rooms and similar. Many business owners hold their own premises in their fund this way.
What's a Limited Recourse Borrowing Arrangement?
An LRBA is the structure that allows an SMSF to borrow. The asset sits in a separate bare trust, the fund makes the repayments, and the lender's recourse is limited to that asset rather than the fund's other assets. It's the only way an SMSF can borrow to acquire property.
Do you give SMSF advice?
No. I provide credit assistance... the lending side. Whether an SMSF suits you, how your fund should be structured, and the tax and compliance consequences are all matters for your accountant or licensed SMSF adviser. I work alongside them rather than in place of them.
People reading this usually
Tell me about your SMSF loan
A few questions so I come to the conversation already understanding your situation. Nothing here commits you to anything, and I don't need your financial details to have a useful first conversation.
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.
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