SMSF lending
Commercial property investment through a self-managed super fund
From 10 August 2026, SMSFs can no longer enter into new Limited Recourse Borrowing Arrangements (LRBAs) to purchase residential property. Commercial property LRBAs remain available and are unaffected by the changes. Existing residential LRBAs are fully grandfathered - there is no forced sale or compliance issue with arrangements entered into before 10 August 2026. Lendology identifies the right SMSF lender for your fund's commercial property purchase and works alongside your financial advisor and accountant throughout. Note: SMSF lending involves complex regulatory requirements. Lendology strongly recommends working with a licensed financial advisor and specialist SMSF accountant before proceeding.
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Trust deed review - The SMSF trust deed must permit borrowing. If it does not, it needs to be amended before lodging. This requires a specialist SMSF lawyer or accountant.
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Sole purpose test - The property must meet the sole purpose test - acquired solely to provide retirement benefits to fund members. SMSF residential property cannot be used by fund members or related parties. Commercial property may be leased to related parties at market rates.
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LVR limits - SMSF lenders typically apply lower LVR limits than standard commercial lenders. Lendology confirms the maximum LVR for your fund's position and property type.
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Fund cash flow - The SMSF must have sufficient cash flow to service the loan from within the fund - typically from member contributions and rental income. Lendology models the fund's cash flow position before lodging.
15 minutes with Jason or Steve. No cost to you, the lender pays us when your loan settles. You pick a time, we call you.
How it works
The Lendology process
1
SMSF compliance confirmation
We confirm the SMSF trust deed permits property borrowing. This typically requires input from your SMSF accountant before we proceed.
2
Lender identification
We identify SMSF-accredited lenders from our panel - fewer lenders offer SMSF loans and the terms, rates and LVR limits vary significantly.
3
LRBA structure
We ensure the Limited Recourse Borrowing Arrangement is structured correctly - including the bare trust and custodian requirements - coordinating with your legal advisor.
4
Application and settlement
We manage the SMSF loan application, coordinate with the custodian trustee and ensure settlement is compliant with SMSF regulations.
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Common questions
FAQs
What is an LRBA?
A Limited Recourse Borrowing Arrangement (LRBA) is the specific loan structure required for an SMSF to borrow money to purchase an asset. In an LRBA, the lender's recourse is limited to the asset being purchased - they cannot access other SMSF assets if the fund defaults. The asset is held in a separate bare trust (custodian trust) during the loan period and transferred to the SMSF once the loan is repaid.
Can an SMSF still buy residential property?
From 10 August 2026, SMSFs can no longer enter into new LRBAs to purchase residential property. An SMSF can still buy residential property outright (without borrowing) if it has sufficient cash, but leveraged residential purchases through an LRBA are no longer permitted. Existing residential LRBAs entered into before 10 August 2026 are fully grandfathered and unaffected.
Can an SMSF buy commercial property?
Yes - commercial property LRBAs are unaffected by the August 2026 changes. Commercial property purchased by an SMSF can be leased to a related party (such as the fund members' own business) at market rates. This is a common strategy for business owners. Lendology arranges commercial SMSF loans.
Do I need a financial advisor for SMSF lending?
Lendology strongly recommends working with a licensed financial advisor and SMSF specialist accountant before proceeding with SMSF property lending. The regulatory requirements are significant and the consequences of non-compliance can be severe. Lendology arranges the lending component and coordinates with your other advisors.