SMSF property lending requires specialist lenders who understand self-managed super fund borrowing rules. Here's how to find the best SMSF lenders.
What Are SMSF Loans?
SMSF loans (Limited Recourse Borrowing Arrangements) allow your self-managed super fund to borrow to buy property.
Key Features:
- Property held in bare trust
- Limited recourse (lender can only claim property, not other fund assets)
- Must be genuine investment (arms-length)
- Strict compliance required
Types of SMSF Lenders
Bank SMSF Lenders
Examples: Westpac, ANZ, NAB (some banks exited) Rates: 5.5-7.5% p.a. LVR: 60-70% Best for: Standard properties, pristine credit
Non-Bank SMSF Specialists
Examples: Liberty, Bluestone, La Trobe Rates: 6.5-9% p.a. LVR: 60-75% Best for: More flexibility than banks
Private SMSF Lenders
Rates: 7-12% p.a. LVR: 60-70% Best for: Complex situations, credit issues
What Makes a "Best" SMSF Lender?
Key Factors:
- Competitive rates - Compare total cost
- Higher LVR - Borrow more (60% vs 70%)
- Property types accepted - Residential vs commercial
- Experience - Years doing SMSF loans
- Service - Responsive, knowledgeable
- Flexibility - Accept complex situations?
SMSF Residential vs Commercial
SMSF Residential Loans
Property: Houses, units (not lived in by members) Rates: 6-9% p.a. LVR: 60-70% Rental: Must be arms-length tenant
SMSF Commercial Loans
Property: Office, retail, warehouse Rates: 5.5-8% p.a. LVR: 60-70% Rental: Can lease to your own business!
Commercial advantages:
- Can lease to your business
- Better tax (lower than personal)
- Business rent is tax deductible
How to Compare SMSF Lenders
Get quotes for:
- Interest rate
- All fees (establishment, ongoing)
- LVR offered
- Loan term options
- Property types accepted
- Approval timeframe
Calculate total cost over expected loan term
Requirements
✅ Compliant SMSF (trust deed, strategy) ✅ Min fund balance: $200k+ (preferably $300k+) ✅ 30-40% deposit ✅ Bare trust structure ✅ Investment strategy allows property ✅ 2+ trustees or corporate trustee
Ready to find the best SMSF lender? Compare SMSF lenders now.