SMSF lending
SMSF loans are different
A loan to a self-managed super fund must be a limited recourse borrowing arrangement that complies with section 67A of the Superannuation Industry (Supervision) Act 1993. The asset must be held on trust, the lender’s recourse is limited to that asset, and the rules on single acquirable assets, related parties and improvements are strict. Since 10 August 2026, new LRBAs over real property can only be used to buy business real property. A loan that gets this wrong can leave the fund in breach and the lender with security it can’t rely on.
We have established SMSF lending programs for a number of Australian lenders, acted on SMSF loans for banks and non-bank lenders, and are regularly engaged for SMSF-specific compliance advice. We combine superannuation and property law knowledge with the lender-side experience our partners gained inside major banks.
Who we act for
Support for SMSF lenders of every size
Lenders entering the market
Building an SMSF lending program from scratch, including documents, policy and process.
Established SMSF lenders
Ongoing loan transactions, document updates and advice on complex scenarios.
Banks and non-bank lenders
Lenders adjusting their SMSF lending to the business real property rules, and refinancing existing residential LRBAs.
Funders
Due diligence on SMSF loan documents, including the enforceability opinions funders often require.
How we help
Our SMSF lending services
- Developing SMSF lending programs, including all underlying policy documentation
- A full suite of SMSF loan, guarantee and mortgage documents, or a review of your existing documents
- Updating your credit policy, loan documents and checklists for the business real property rules that apply from 10 August 2026
- Advice on business real property, grandfathering and refinancing existing residential LRBAs
- Reviewing the SMSF trust deed, holding trust deed and contract for sale on each loan
- SMSF advice letters to lenders and borrowers on the legal issues in each deal
- Dealing with borrowers, guarantors, advisers and brokers to satisfy SIS Act requirements and conditions precedent
- Solicitor’s certification, settlement through PEXA or on paper, and mortgage registration
- SIS Act advice on complex scenarios, including single acquirable assets, related party purchases, in-specie contributions, in-house assets, refinancing related party LRBAs and lost trust deeds
- Due diligence on SMSF loan documents, including enforceability opinions for funders
Selected work
Recent SMSF matters
Lending programs
Established SMSF lending programs, including the underlying policy documentation, for a number of Australian lenders.
Loan transactions
Act for lenders on SMSF loans nationally, from preparing the loan documents and dealing with the borrower and their advisers through to settlement.
Compliance advice
Regularly engaged by lenders for SMSF-specific compliance advice on complex scenarios.
The 2026 changes
No new LRBAs for residential property
From 10 August 2026, an SMSF can only use a new limited recourse borrowing arrangement to buy real property if it is business real property. In practice, that ends new SMSF loans for residential investment property. LRBAs themselves are not banned, and the change applies to every lender, including banks, non-bank lenders and related parties. Here’s what it means for lenders:
Business real property only
For LRBAs entered into on or after 10 August 2026, the property must be business real property, which generally means land and buildings used wholly and exclusively in a business. A dwelling on a primary production property can still qualify in limited cases.
For the life of the loan
The property must be business real property when the LRBA is entered into and for its entire life. If business use stops, the fund breaches the borrowing rules, even if business use later resumes.
Existing loans are grandfathered
LRBAs entered into before 10 August 2026 are not affected, and can be maintained or refinanced. The ATO treats a refinance as a new loan for the same asset, with the same or a new lender.
Contracts exchanged before 10 August
If the fund exchanged a binding contract to buy the property before 10 August 2026, the change doesn’t apply, even if the loan is entered into or the purchase settles later. A significant later variation can put this at risk.
An SMSF can still own residential property that isn’t business real property, as long as it meets the other super rules. It just can’t finance it under a new LRBA. See the ATO’s guidance on the changes for more, and our guides on how an SMSF can borrow to buy property and the SIS Act for SMSF lenders.
Why Hindsight
Why SMSF lenders choose us
Super and property law together
We understand the SIS Act and the property and security law that sits around it.
We’ve sat on the bank’s side
We’ve worked inside major banks, so we know what lenders need from their documents and their lawyers.
Fixed prices
Our SMSF loan services are offered at fixed prices, so you know the cost upfront.
Partner-supervised, every matter
Every matter is supervised by one of our Founding Partners.
Our partners
The team behind your SMSF loans
Our SMSF lending work is led by our Founding Partners, who have helped banks and non-bank lenders enter the SMSF lending market.
Michael Lazar
Founding Partner
Formerly NAB and Dentons. Advises banks, credit providers and SMSF lenders on regulation and structuring.
AJ Sridaran
Founding Partner
Formerly Macquarie Bank and Dentons. Legal 500 ‘lawyer to note’ in fintech and financial services regulation.
Recognised by the Legal 500 and Lawyers Weekly
Meet our partners →FAQs
Frequently asked questions
Can SMSFs still borrow to buy residential property?
Not under a new LRBA. Since 10 August 2026, real property bought under an LRBA must be business real property, unless the fund exchanged a binding contract before that date. Existing residential LRBAs can continue and can be refinanced for the same property.
What makes an SMSF loan different from other loans?
It must be a limited recourse borrowing arrangement under section 67A of the SIS Act. The asset is held on trust for the fund until the loan is repaid, it must be a single acquirable asset, and the lender’s rights against the fund are limited to that asset.
Can lenders take personal guarantees on SMSF loans?
Yes. Lenders commonly take guarantees from the fund’s members, and most ask each guarantor to get independent legal advice. The guarantee must be structured so it doesn’t undermine the limited recourse nature of the loan.
Can an SMSF borrow to buy property from a related party?
Generally, an SMSF can’t acquire assets from related parties, but there are exceptions, including business real property. We can advise on whether a particular purchase is permitted and how to document it.
Can an existing LRBA be refinanced?
Yes. Refinancing an LRBA that was entered into before 10 August 2026, for the same property, is not caught by the business real property rule, whether the new lender is a bank, a non-bank lender or a related party. We act for lenders on these refinances and advise on the issues involved, including whether a related party loan was on arm’s length terms.
Talk to us
Planning to offer SMSF loans, or need a hand with one?
Book a call and we’ll tell you what you need and what it will cost.