SMSF Lending

Limited Recourse Borrowing (LRBA) for Self-Managed Superannuation Funds (SMSF) lending is a more complex process to standard lending. It is important to have good understanding of each lender's requirements and process before committing as these types of loans can pose borrowers with some challenges. 

We can assist in all LRBA scenarios including:

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• Commercial Property Purchase (including transfer of an existing Commercial Asset to a SMSF)

• Residential Property Purchase

• Refinance of existing LRBA (both complying Lender and Private LRBAs)

SMSF lending options are mostly available with non bank lenders, each with varying appetites. 

• The self managed super fund should be established prior to purchasing.

• Often liquidity rules apply to ensure the SMSF has cash resources available (to cover repayments or essential property maintenance).

• The super fund need to have sufficient assets. If you need to liquidate or transfer assets timing here is important.

• Typically borrowing thresholds are 80% for Residential and even up to 80% for Commercial but appetites may vary depending on the type of property, location or strength of the members or fund.

• The transaction must comply with the Superannuation Industry (Supervision) Act.

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Prior to committing to a purchase in your SMSF, it is important you get the right advice from an accountant or financial advisor, we will work proactively with them throughout the process.