SMSF Property Loans in 2025 – Compare Leading Lenders and Key Rules.

Snapshot / TL;DR

Self-Managed Super Fund (SMSF) property loans remain a popular way for Australians to grow their retirement wealth through direct property investment.

In 2025, lenders such as Firstmac, La Trobe Financial, and Liberty continue to offer competitive SMSF loan options – each with unique criteria, rates, and structures.
This guide breaks down how SMSF loans work, lender differences, and what to know before applying.

What Is an SMSF Loan and Why It Matters

An SMSF loan allows your fund to borrow money to buy residential or commercial property under a Limited Recourse Borrowing Arrangement (LRBA) – meaning the loan is secured only against the purchased property.

If repayments can’t be met, your fund’s other assets remain protected.

To qualify, your SMSF must have:

• A compliant trust deed that allows borrowing

• Regular contributions (assessed for serviceability)

• A Bare (Holding) Trust to legally hold the property

• Repayments and expenses paid from SMSF income (rent + contributions)

• Personal or corporate trustee guarantees

• Independent legal and financial advice

Tip: Always structure your SMSF correctly before making any property offer.

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Compare SMSF Residential Loans (2025)

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Key Considerations Before Applying

Before you apply for an SMSF property loan, ensure:

• Your trust deed allows borrowing

• The property is investment-only (no member use)

• The fund maintains ≥5% liquidity after settlement

• You get independent legal and financial advice

Serviceability Example

• Firstmac & La Trobe: Count 80% of rental income + 100% contributions

• Liberty: More flexibility in repayment and rate structures

Lender Asset & Liquidity Requirements

Tip: Most lenders expect at least $150K–$200K in SMSF assets before buying.

Example – How Much Can You Borrow?

A fund with $250K cash and $40K annual contributions could typically:

• Borrow $1.0-$1.5 million, depending on lender and property type

• Choose between fixed or variable rates, with P&I or interest-only repayments

Why Work With a Broker for SMSF Loans

SMSF lending is complex. Small structural or documentation mistakes can delay approval or cause ATO non-compliance.

A specialist broker helps you:

1. Confirm SMSF compliance and borrowing capacity

2. Compare rates, fees, and lender policies

3. Structure your Bare Trust and trustee setup

4. Prepare compliant loan applications

At Broker360, we focus on compliance, sustainability, and alignment with your retirement goals — not just finding a low rate.

Frequently Asked Questions

1. Can my SMSF buy property with a loan?
Yes – under an LRBA, if the property meets ATO rules.

2. Can I live in a property owned by my SMSF?
No. SMSF-owned properties cannot be used by members or related parties.

3. Do I need a personal guarantee?
Yes. All SMSF lenders require member or corporate trustee guarantees.

4. Can I refinance an existing SMSF loan?
Yes – lenders like Firstmac, Liberty, and La Trobe allow refinancing.

5. Do SMSF loans require LMI?
No. Lenders Mortgage Insurance (LMI) does not apply.

In Summary

Thinking of Investing Through Your SMSF in 2025?

Contact Broker360 today – we’ll help you compare lender policies, confirm eligibility, and structure your SMSF loan correctly.

Disclaimer:
This information is general only and does not constitute financial advice.
Always consider your personal circumstances and seek professional advice.
Rates and figures are current as of 2025 and may change.