Who Is Left To Lend To Smsfs?

An SMSF may obtain a compliant LRBA loan from a bank, specialist or non-bank lender, or a related party such as a member. Lender availability, pricing and eligibility change, so there is no reliable permanent list of providers. The same 10 August 2026 restriction on newly financed real property applies regardless of who lends the money.

Broadly, it is real property used wholly and exclusively in one or more businesses. A property’s description as “commercial” is not enough on its own; its actual use matters. From 10 August 2026, business real property financed under a new LRBA must meet that definition when the arrangement begins and throughout the loan. Have a proposed property assessed before signing a contract.

Generally not under a new LRBA if the residential property is not business real property. An SMSF may still buy eligible residential property without borrowing, subject to the usual superannuation rules. A residential property that genuinely meets the business real property definition may be different, so obtain advice on the particular use and circumstances.

The new restriction does not apply to an existing LRBA entered into before that date, and the ATO says that such an arrangement may be maintained or refinanced. It also does not apply where the SMSF exchanged a binding contract to acquire the property before 10 August 2026, even if finance or settlement comes later. Significant contract changes should be reviewed before relying on that exception.

Potentially, if the loan is a genuine, properly documented LRBA and the fund can acquire the asset under the current rules. Related-party dealings must be on arm’s-length terms; favourable loan terms can create serious tax consequences for the fund. A member loan does not bypass the new business real property restriction for an SMSF property purchase.

This may be possible as a separate personal borrowing followed by a properly structured loan to the SMSF. It puts your home and personal finances at risk if you cannot meet your own repayments, even where the SMSF loan is limited recourse. The interest and tax treatment of your personal loan also need separate advice. The SMSF loan must still satisfy all LRBA and related-party rules.

Check the fund deed and investment strategy, whether the asset is eligible, the holding trust and contract structure, deposit and transaction costs, lender conditions, and cash flow after repayments, expenses and any pension obligations. Allow for vacancies, higher rates and unexpected costs. An SMSF accountant, appropriately licensed financial adviser, lawyer and experienced finance broker can each address their part of the decision before documents are signed.