SMSF Borrowing Power: How Lenders Assess Your Fund's Capacity

General information only — not financial advice. This content is intended as educational guidance. Consult a qualified financial adviser, mortgage broker, or legal professional before making financial decisions. See our full disclaimer.

Unlike a personal home loan where lenders assess your salary, SMSF borrowing power is calculated based on the fund's ability to repay - not your personal income. Lenders look at expected rental income, member contributions, existing fund assets, and fund expenses.

Frequently Asked Questions

How much can my SMSF borrow to buy property?

It depends on fund balance, contribution rate, and expected rental income. An SMSF with $300,000 in assets and $55,000/year in contributions can typically borrow $400,000–$490,000.

What is the minimum super balance to buy property in an SMSF?

No legal minimum, but most experts recommend at least $200,000–$300,000.

Does employer super count towards SMSF borrowing power?

Yes. Employer SG contributions flow into your SMSF and are factored into the borrowing assessment.

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