10 August 2026 marks a significant change to SMSF property lending.
New residential property purchases through SMSF borrowing are no longer permitted.
But if you already own residential investment property within your SMSF, there are still opportunities — particularly around refinancing and restructuring existing debt.
The key is understanding what is still possible and matching your circumstances with the right lender and structure.
Existing SMSF residential property can still be refinanced
One specialist lender’s SMSF product effective from 10 August 2026 provides for refinancing of existing SMSF residential investment property acquired prior to 9 August 2026.
Importantly, the product provides for:
• Up to 80% LVR with no LMI
• Up to 90% LVR including capitalised LMI
• Loan amounts from $150,000 to $2 million
• Loan terms of 15–30 years
• Principal & Interest or Interest Only options
These are significant lending parameters for SMSF investors looking to review their existing debt position.
🔄 What does this mean for SMSF investors?
The change doesn’t necessarily mean you should simply leave your existing SMSF loan untouched.
It may be an opportunity to review:
✔ Your current interest rate
✔ Your existing LVR
✔ Loan structure and term
✔ Interest-only versus principal-and-interest repayments
✔ Your SMSF’s cash flow and liquidity
✔ Whether your existing lender remains competitive
✔ Whether refinancing could improve the overall position of the fund
The lender information I have reviewed also indicates that servicing can take into account 80% of rental income, investment income and mandatory superannuation contributions, with additional concessional contributions potentially included where the relevant requirements are met.
💡 And don’t forget the LRBA
The Limited Recourse Borrowing Arrangement (LRBA) remains an important part of understanding existing SMSF property structures.
Under an LRBA, the property is held through a separate bare/property trust, with the SMSF corporate trustee as borrower. The lender’s recourse is generally limited to the secured asset, subject to the specific structure and guarantees.
For existing SMSF residential property, the ability to refinance an LRBA can therefore still be highly relevant.
🏢 What about commercial property?
Commercial property remains an area worth considering within an SMSF strategy, subject to the superannuation rules, investment strategy and appropriate professional advice.
For business owners in particular, the interaction between SMSF strategy, commercial property, business premises and finance can be worth exploring carefully.
Why use a broker?
SMSF lending is not a standard home loan.
Different lenders can have materially different:
• LVR limits
• Interest rates
• Serviceability calculations
• Property restrictions
• Loan amounts
• Contribution requirements
• Liquidity requirements
• Trustee and guarantor requirements
For example, the product reviewed here requires a corporate SMSF trustee, personal guarantees from beneficiaries and a minimum post-settlement liquid asset position of 5% of total SMSF debt.
That is precisely where professional finance structuring can make a difference.
How I can assist
As a Chartered Accountant and Accredited Finance & Mortgage Broker, I can assess your SMSF lending position from both a finance and commercial perspective.
I can help you:
→ Review your existing SMSF loan
→ Benchmark your current interest rate
→ Assess available LVR and refinancing options
→ Compare specialist SMSF lenders
→ Structure an appropriate LRBA refinance
→ Assess servicing and liquidity requirements
→ Work alongside your accountant, financial adviser and solicitor
The question after 10 August isn’t simply:
“Can my SMSF still borrow to buy residential property?”
For existing property owners, the better question may be:
“Is my existing SMSF lending still structured competitively — and what options do I have now?”
If you have an existing SMSF residential investment property, an LRBA or SMSF commercial property strategy, I’d be happy to review the position and identify what financing opportunities may still be available.
📩 Contact Advanced Finance Group to discuss your SMSF finance options.
Important: SMSF lending and investment strategies are subject to legislation, lender policy, the fund’s investment strategy and individual circumstances. Rates, LVRs and lending criteria vary between lenders and are subject to change. The rates and LVRs referred to above are examples from a current lender product specification and the lender has deliberately not been named. This is general information only and is not financial, tax or legal advice. Appropriate professional advice should be obtained before proceeding.
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