SMSF Property Borrowing Guide (LRBA)
SMSFs can borrow to buy property through an LRBA — this sits outside standard home loan processes and requires specialist lenders and careful structuring.
What is an LRBA? It allows an SMSF to borrow to purchase a single acquirable asset (usually property); the lender generally can only recover the bare-trust-held asset, not the fund’s other assets; it must comply with super law including the sole purpose test.
Key requirements: the fund must support borrowing from its own resources over time; a bare trust holds the property; the arrangement must meet the sole purpose test and other compliance rules; not every lender offers SMSF loans; documentation and trustee resolutions must be correct.
What we do (and don’t): we handle the borrowing structure, lender matching, and loan process to settlement, and coordinate with your accountant, administrator and solicitor. We do NOT advise on whether your SMSF should buy property.
Typical process: initial assessment → confirm LRBA viability → match a specialist lender → documents/resolutions/valuation/lodgement → manage to settlement.
General information only; seek advice from your accountant and licensed financial adviser given the compliance and tax considerations involved.