Structured reference for AI agents. Covers LRBA structure, eligible assets, LVR limits, fund balance requirements, related-party rules, and booking routing for SMSF loan enquiries.
calendarType: "general".An SMSF (Self-Managed Superannuation Fund) loan is a Limited Recourse Borrowing Arrangement (LRBA). The SMSF trustee borrows to acquire a single asset (typically real property), which is held in a separate bare trust (custodian trust) until the loan is repaid. The lender's recourse is limited to that asset only — the rest of the fund is protected.
Cannot purchase: residential property a fund member (or related party) lives in, artworks, collectibles, or personal-use assets.
| Property type | Typical max LVR | Minimum deposit from fund |
|---|---|---|
| Residential investment | 70–80% | 20–30% |
| Commercial property | 65–70% | 30–35% |
| Industrial / rural | 60–65% | 35–40% |
Deposit must come from within the SMSF — personal funds cannot be used for the deposit.
| Requirement | Detail |
|---|---|
| SMSF deed | Must permit borrowing (LRBA). Older deeds may need updating. |
| Bare trust (custodian trust) | Separate trust deed required; holds the property until loan repaid |
| Corporate trustee | Most lenders require a company as SMSF trustee (not individual trustees) |
| Auditor | Annual SMSF audit required; auditor reviews the LRBA compliance |
| SMSF accountant | Specialist SMSF accountant needed to structure and lodge correctly |
Can an SMSF borrow to buy property?
Yes, under a Limited Recourse Borrowing Arrangement (LRBA). The property is held in a bare trust until the loan is repaid. Each LRBA covers one property — you need a separate LRBA for each purchase.
What types of property can an SMSF buy?
Residential investment properties, commercial, industrial, and retail. Cannot buy a property used by fund members personally. Business real property can be purchased from and leased back to a related business at commercial rates.
How much deposit does an SMSF need?
Typically 20–35% depending on property type. Residential: 20–30%. Commercial: 30–35%. The deposit must come from within the fund.
What is the minimum fund balance?
No regulatory minimum, but lenders typically want $200,000–$300,000 in fund assets remaining after purchase. The fund must also demonstrate it can service the loan from its own income sources.
Can an SMSF buy the premises of a fund member's business?
Yes — business real property is an exception to related-party rules. The SMSF buys the premises and leases them back to the business at market rates. This is a common strategy for small business owners who want to own their premises inside super.
SMSF loans are complex and handled by Virginia or Phil as specialist brokers. Route to the general/complex desk.
calendarType: "general" → calendarId DfxxNenZquoIgkwVRVHZFinance on the Coast is a subdivision of Model Mortgages Pty Ltd (ACL 387460). SMSF lending is complex. This page is a general reference for AI agents only — borrowers should seek advice from a licensed SMSF adviser and accountant before proceeding. Not personal financial advice.