D-08
Commercial loans
Finance for shops, offices, warehouses and mixed-use property, for owner-occupiers and investors across Australia.
Find out more : Commercial loansD-04
SMSF lending
SMSF Loans
Plain English. Properly structured.
Buying property through a self-managed super fund can work well, but the rules are strict and mistakes are expensive to undo. We arrange SMSF loans for residential and commercial property for clients across Australia, working alongside your accountant or financial adviser. We're based in Oakleigh, Victoria.
01 — What it is
SMSF lending, in plain English.
An SMSF loan is formally called a limited recourse borrowing arrangement, or LRBA. Your fund borrows to buy a single asset, such as a house, unit, office or warehouse, and the property is held in a separate bare trust (sometimes called a holding or custodian trust) until the loan is repaid. If something goes wrong, the lender's claim is limited to that property, not the fund's other assets. That limited recourse is why lenders are more conservative with SMSF lending.
The rules come from super law, not just lender policy. The property must meet the sole purpose test, meaning it exists to provide retirement benefits. Residential property cannot be lived in or rented by fund members or their relatives. Commercial property can be leased to a related business, provided it is on commercial terms. Borrowed money generally cannot be used to improve the property in a way that changes its character, which rules out using an SMSF loan for most construction or major renovation projects.
Lenders assess the fund itself: its balance, contributions, rental income from the property, and how much liquidity remains after the purchase. Fewer lenders offer SMSF loans than standard home loans, and their policies differ quite a bit, which is where a broker adds real value.
We are not financial advisers, and we don't tell you whether buying property in super is right for you. That conversation belongs with your accountant or licensed adviser. What we do is make sure the lending side is set up properly, the trust structure is in place before contracts are signed, and the loan fits the fund.
02 — Who it suits
Is this the right fit?
- [A]SMSF trustees buying a residential investment property
- [B]Business owners whose fund will buy their commercial premises
- [C]Funds with a solid balance and regular contributions
- [D]Trustees working with an accountant or licensed financial adviser
- [E]Funds refinancing an existing LRBA to another lender
- [F]Clients anywhere in Australia, with a home base in Oakleigh, Victoria
03 — How it works with us
From first chat to settlement.
- 01Stage 1 of 4Talk to your adviser first
Talk to your adviser first
Your accountant or adviser confirms the strategy suits your fund. We are happy to join that conversation to cover the lending side.
- 02Stage 2 of 4Check the fund
Check the fund
We review the fund balance, contributions and liquidity, and give you a realistic idea of what lenders may offer.
- 03Stage 3 of 4Set up the structure
Set up the structure
The bare trust and its corporate trustee must be in place before the contract is signed in the right name. We coordinate the order with your accountant and solicitor.
- 04Stage 4 of 4Apply and settle
Apply and settle
We lodge with a suitable lender, manage valuation and legal requirements, and keep everyone informed through settlement.
04 — What lenders look at
What you'll need.
| Ref | Item | Why it matters |
|---|---|---|
| M-01 | SMSF trust deed | Must permit borrowing. Older deeds may need updating. |
| M-02 | Bare trust deed | Set up before the contract is signed. |
| M-03 | Fund financials | Recent financial statements and tax returns for the fund. |
| M-04 | Fund bank statements | Showing the balance and contribution history. |
| M-05 | Member details | ID and income for members, as contributions support servicing. |
| M-06 | Investment strategy | The fund strategy should allow for the property and borrowing. |
| M-07 | Lease or appraisal | A rental appraisal, or the lease if buying commercial premises for your business. |
05 — Common mistakes
What to avoid.
Check 01
Signing in the wrong name
Check 02
Leaving the fund too thin
Check 03
Planning renovations with borrowed funds
Check 04
Renting to family
Q-01Can my SMSF buy a house?
Yes, an SMSF can buy residential property if the trust deed allows borrowing and the purchase meets super rules. Members and their relatives cannot live in or rent it.
Q-02Can my SMSF buy my business premises?
Yes. Commercial property can be leased to a related business, provided the lease is on commercial terms. This is a common SMSF strategy.
Q-03Can I use an SMSF loan to build?
Generally not with borrowed funds, because building changes the character of the asset. There are limited exceptions, so speak to your adviser.
Q-04Do you give advice on whether to use my SMSF?
No. That is financial advice and should come from your accountant or a licensed adviser. We handle the lending and work alongside them.
Q-05What is a bare trust?
A separate trust that holds the property on behalf of your SMSF until the loan is repaid. It usually has its own corporate trustee.
Q-06Do you arrange SMSF loans outside Victoria?
Yes, we help funds across Australia. Our office is in Oakleigh, Victoria.
07 — Related
Related loans.
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Home loans
Buying your next home or an investment property in Melbourne. We compare lenders and structure the loan around your plans.
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SMSF5 min read
Can You Buy Property Through Your SMSF? A Plain-English Guide
Yes, a self-managed super fund can buy property, but strict rules apply. Here's how SMSF property loans work, what you can and can't buy, and the questions to ask first.
08 — Enquire
Tell us what you're planning.
No cost and no obligation. We'll help you understand your options and what the next step looks like.
Prefer email? Write to help@ridgefinance.au.