SMSF PROPERTY lending is changing — but there are still opportunities
From 10 August 2026, self-managed super funds can no longer enter into new limited recourse borrowing arrangements to purchase residential property, unless a qualifying pre-commencement arrangement applies.
However, SMSF lending has not disappeared.
Eligible SMSFs may still be able to:
- Borrow to purchase qualifying commercial or business real property
- Refinance an existing residential SMSF property loan
- Review an existing SMSF loan to determine whether a more competitive rate or structure is available
- Refinance an existing commercial SMSF property loan
- Proceed with certain residential purchases where the acquisition arrangement was entered into before 10 August 2026
At Edgewater Finance, we specialise in the lending side of SMSF property transactions. We work with your accountant, financial adviser and solicitor to help you understand the available finance options and navigate lender requirements.
how we can HELP
- Offices and professional suites
- Warehouses and industrial units
- Retail premises
- Medical and allied health premises
- Factories and workshops
- Commercial storage facilities
- Other properties used wholly and exclusively in one or more businesses
refinancing an existing RESIDENTIAL SMSF LOAN
Already have residential property inside your SMSF with an existing loan?
The new rules do not automatically prevent you from refinancing that borrowing.
Your current SMSF lender may no longer be offering its most competitive rate, or the loan may no longer suit your fund’s position. We can review your existing arrangement and compare it with available SMSF refinance options.
A refinance review may help you investigate:
- A more competitive interest rate
- Lower ongoing fees
- Improved monthly cash flow
- A different fixed or variable rate structure
- A lender with more suitable servicing requirements
- A more appropriate remaining loan term
- Consolidation or restructuring options where permitted
reviewing your existing SMSF LOAN
Even if you are not ready to refinance, it can be worthwhile reviewing your loan.
SMSF loans are often left with the same lender for years because trustees assume refinancing will be too difficult or that there are no other options. However, lender policies, interest rates and available products change over time.
Our review considers:
- Your current interest rate and fees
- The outstanding loan balance
- The property value and estimated LVR
- Rental income and fund contributions
- Liquidity and cash-flow requirements
- The remaining loan term
- Current lender options
- Whether the potential savings justify the costs of refinancing
buying your business premises through your SMSF
For some business owners, an SMSF may be able to borrow to purchase the commercial premises from which their business operates.
The business may then lease the property from the SMSF under a properly documented commercial arrangement and on arm’s-length terms.
Depending on the circumstances, this could include an office, warehouse, factory, workshop, retail premises or consulting rooms.
This type of transaction can be useful for business owners who want greater control over their premises while building an asset within their superannuation fund. However, it involves strict legal, leasing, valuation, investment strategy and compliance requirements.
Edgewater Finance provides assistance with the lending. Your financial adviser, accountant and solicitor should determine whether the strategy and property are appropriate and compliant for your fund.
how an SMSF COMMERCIAL PROPERTY LOAN works
An SMSF property loan is generally established through a limited recourse borrowing arrangement.
- Your SMSF identifies an eligible commercial property.
- A separate holding or bare trust holds the legal title to the property.
- The SMSF provides the deposit and purchasing costs.
- The lender advances the remaining purchase funds.
- Loan repayments are made from the SMSF.
- Once the loan is repaid, legal ownership may be transferred to the SMSF trustee, subject to the applicable legal requirements.
why choose EDGEWATER FINANCE?
01
Specialists In Smsf And Complex Lending
02
Commercial Lending Experience
03
Access To Specialist Smsf Lenders
04
Support From Review To Settlement
05
Clear And Honest Guidance
our SMSF FINANCE process
Initial Finance Discussion
Borrowing Capacity and Loan Review
Compare Suitable Lenders
Work With Your Advisers
Application and Settlement
who can apply for an SMSF LOAN?
You’ll need to meet a few conditions:
- Have an established SMSF with a valid investment strategy
- Have sufficient super balance and cash flow to support the loan
- Be buying an eligible investment property (residential or commercial)
- Ensure the property is for investment only — not for personal use or related parties
Don’t have an SMSF set up yet? We can connect you with trusted partners to get your structure in place first.
what types of property can you buy in your SMSF?
Residential Investment Property
Commercial Property
New Builds or Off-the-Plan?
is an SMSF LOAN right for you?
These loans aren’t for everyone. But for the right person, they can be a game-changer.
You may benefit if:
- You’re a savvy investor looking for more control over your super
- You already have an SMSF and want to diversify into property
- You’re a business owner wanting to buy your premises through super
- You have a strong super balance (generally $200K+ recommended)
let’s talk SMSF lending – OBLIGATION-FREE
Thinking about buying property through your super? Let’s have a confidential, no-pressure chat.
JAMES, BUSINESS OWNER (commercial SMSF loan)
James is a 48-year-old business owner with an established SMSF and around $600,000 in super. Challenge:
He was renting his commercial space and wanted to stop throwing money away on rent — ideally, he wanted his SMSF to own the building so he could pay rent to himself.
- Secure a commercial SMSF loan for 70% of the purchase price
- Set up the required bare trust structure with his accountant
- Negotiate SMSF-compliant lease terms between his business and fund
- Set a fixed interest rate to manage repayments for the next 5 years
FAQs - SMSF LOANS
Can my SMSF still borrow to buy residential property after 10 August 2026?
Generally, a new LRBA cannot be used to acquire residential property from 10 August 2026.
Certain arrangements entered into before commencement may remain protected, including where the acquisition arrangement was entered into before 10 August 2026 but settlement occurs later. Obtain legal advice to confirm whether the transitional provisions apply to your transaction.
Can my SMSF keep an existing residential investment property?
Yes. The change does not require SMSFs to sell residential property already owned under an existing arrangement.
Can an existing residential SMSF loan be refinanced?
Qualifying existing borrowing arrangements can still be refinanced. The proposed refinance must satisfy the applicable SMSF rules and the new lender’s requirements.
We can review your current loan, compare available lenders and explain whether refinancing may be worthwhile.
Can an SMSF still purchase residential property without a loan?
The new restriction relates to borrowing. An SMSF may still be able to purchase residential property entirely with available fund money, subject to its investment strategy and the usual superannuation, related-party and acquisition rules.
Seek financial, taxation and legal advice before proceeding.
Can my SMSF still borrow to purchase commercial property?
Yes, where the property qualifies as business real property and the transaction satisfies the LRBA and other SMSF requirements.
Can my business lease premises owned by my SMSF?
Potentially. Business real property can generally be leased to a related business where the arrangement complies with the superannuation rules and is conducted on arm’s-length commercial terms.
Your accountant, financial adviser and solicitor should confirm the structure and lease requirements.
How much can my SMSF borrow for commercial property?
The amount depends on the property, lender, rental income, fund contributions, expenses, liquidity and overall loan structure.
Commercial SMSF LVR limits vary considerably. We can complete an initial assessment before you commit to a property.
Should I review my existing SMSF loan?
If your loan has not been reviewed recently, it may be worthwhile checking the interest rate, fees, loan term and available alternatives. A review does not obligate you to refinance.
IMPORTANT INFORMATION
The information on this page is general information only and does not take into account your objectives, financial situation or needs. Edgewater Finance provides credit assistance and does not provide financial, taxation, legal or SMSF establishment advice.
Before making decisions involving an SMSF, property purchase, borrowing arrangement or refinance, obtain independent advice from an appropriately qualified financial adviser, accountant and solicitor. Eligibility, lending criteria, rates, fees and loan availability vary between lenders and are subject to change.