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An SMSF (Self-Managed Super Fund) property loan allows your superannuation fund to borrow money to purchase residential or commercial property as an investment. The loan is structured as a limited recourse borrowing arrangement (LRBA), meaning if the fund defaults, the lender can
While there's no legal minimum, most experts suggest at least $200,000–$300,000 in your SMSF before purchasing property. After covering the deposit (20–30%), stamp duty, legal costs, and loan fees, you would still need enough diversified assets in the fund to meet the diversification requirements and cover ongoing expenses.
No. Under the sole purpose test, SMSF property must be held strictly for retirement benefits. Members, their relatives, and related parties cannot live in, holiday in, or use the property personally. Breaching this rule can result in severe penalties from the ATO.
SMSF property loan rates are typically 1.0%–1.5% higher than standard variable home loan rates. In the current market (March 2026), expect rates around 7.5%–8.5% for residential SMSF loans, depending on LVR and lender. Commercial property rates may be slightly higher.
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