SMSF LOAN BROKER SYDNEY
SMSF Loans Sydney
Secure an SMSF loan with a trusted, award-winning broker who specialises in SMSF lending.
What Is an SMSF Loan and How Does It Work?
SMSF loans allow you to buy investment property through your superannuation. They are governed by strict ATO rules and are more complex than standard property loans, but when structured correctly, they can be an effective way to grow your retirement savings in a tax-advantaged environment. SMSF loans are set up using a limited recourse borrowing arrangement (LRBA), meaning the loan is secured only against the property being purchased. This structure provides protection for your super but comes with tighter lender rules, fewer lending options, and property restrictions.
When you partner with a trusted SMSF loan broker like AFMS, you benefit from advisors breaking down complex structures into custom strategies. With strict lender limits, a finite number of lenders offering SMSF loans, and restrictions on the types of residential or commercial property you can buy, it pays to seek out expertise.
The Core of an SMSF Loan Structure
Generally, super funds cannot borrow much money because Australian regulators prioritise protecting your retirement funds from debt risks. Therefore, SMSF loans work through a limited recourse borrowing arrangement (LRBA) for the purpose of generating retirement benefits. This means that only the property you buy with the loan is at risk, not all your other superannuation fund assets, such as shares, cash and investments.
The setup comprises three key elements:
1. Your SMSF
The super fund puts down the deposit for an investment property and therefore owns the property’s benefits, such as rent and growth. Loan repayments are made from rent and contributions.
2. Bare Trust
An SMSF loan structure requires a temporary “holding company” to legally own the property title until the loan is paid off.
3. Bank/lender
You can only use an SMSF loan to buy an investment property; you cannot buy for personal use or your primary place of residence. The LRBA structure is followed for both residential and commercial investment property, but there are differences in lender appetite, property costs, rental yields and scale.
Apply for a SMSF Loan Today!
If you are searching for a SMSF loan with a broker you can trust, contact us.
SMSF LOAN OPTIONS
SMSF Lending Options for Property Investment
Buying Residential Property With an SMSF Loan
If you intend to buy an investment residential property, you will be able to access different lenders and products, generally with
- 70-80% loan to value ratio (LVR). Meaning you’ll need around a 20-30% deposit from your super fund.
- Higher SMSF interest rates compared to standard home or investment loans. This is due to the limited recourse structure and added lender risks and complexity.
- Loan sizes up to $2-$3 million.
- Arm’s length tenant rules, meaning no renting to a related party.
Buying Commercial Property With an SMSF Loan
There are fewer lenders specialising in SMSF commercial property loans due to the stricter compliance rules. A mortgage broker could help you navigate the complexities if you intend to buy a commercial investment property. Generally, you will see:
- 65-75% LVR, so a 25-35% deposit requirement.
- Higher interest rates due to the higher risk.
- Loan sizes typically range between $2-$10 million. You can pool up to 6 members to afford a larger commercial property.
- Business tenant rules mean you can lease the property back to your business at market rates.
WHY CHOOSE US?
Why Choose us as Your SMSF Loan Broker
Director-Led Advice From an Award-Winning Broker
As a director-led company, every client receives direct strategic advice from Andrew Hadjidemetri. With over 10 years of experience in the Greater Sydney finance industry before starting AFMS, Andrew brings unique and excellent expertise to our SMSF loan service. Our personalised approach and extensive financial experience are why we were named in the Top 10 Mortgage Brokers in Australia Award in 2025.
Access to Specialist SMSF Lenders You Won’t Find Easily
At the core of our mission are the relationships we cultivate so we can bring exclusive products to Australian homeowners. With a finite number of lenders and banks offering SMSF loans, our partnership with 60+ lenders can help you find a lender for your investment strategy. Our commitment to building enduring relationships is a testament to our decades-long presence in the industry. We have also remained steadfast alongside our clients, proving our reliability over time.
We Help You Understand What’s Possible for Your SMSF
SMSF lending is complex with many compliance requirements. Many banks and lenders no longer offer SMSF loans due to the risks and regulatory rules. Our team work tirelessly to help you understand your SMSF loan options for your financial situation and the key elements needed to structure your LRBA. Kickstart your investment strategy with confidence.
How Much Can You Borrow With an SMSF Loan?
Lending limits under an SMSF loan really depend on your superannuation fund and the property investment you choose:
- Fund serviceability test: Lenders test that your super fund can actually afford the repayments using only its own money. The test uses 80% of the gross rental income (as a safe bet) plus your projected contributions based on financial history to determine the repayment amounts.
- LVR: The loan-to-value ratio is typically different depending on the property. Residential property ranges between 70-80%, and commercial property ranges between 65-75%.
RESTRICTIONS
SMSF Loan Restrictions
LRBA Only
This loan must be structured as a Limited Recourse Borrowing Arrangement and can only be used to acquire a single asset, helping protect the rest of your super if anything goes wrong.
No personal use
The property must be held at arm’s length and cannot be lived in, used for holidays, or accessed by you or any related party at any time.
No improvements
Loan funds can be used to purchase the property and cover essential repairs or maintenance, but cannot be used for renovations or improvements that change the asset.
Fund minimum
Most lenders require a minimum loan amount between $300,000 and $500,000, along with at least two years of compliant financial statements
SMSF Loan Benefits
Investment control
A self-managed super fund gives you control over how to invest for your retirement. An SMSF loan enables leveraged property buys, unlocking assets your super balance alone couldn't afford.
Tax efficiency
Benefit from strong tax efficiency compared to personal investments with concessional discounts and strategic flexibility applicable to the self-managed super fund.
Asset protection
The property investment is protected under the super to shield retirement savings from losses such as business collapse, bankruptcy and lawsuits.
Borrowing power
Pool up to 6 members' funds to contribute towards a larger deposit and property investment.
We Streamline Complex SMSF Loans into Custom Strategies
We understand that strategic planning for your retirement fund is notoriously complex, especially when you’re a busy professional with limited time. Our expert team work tirelessly to help you handle your SMSF loan structure, documents, negotiations and compliance to make the process as smooth as possible. With a commitment to a 4-hour response time and extended weekday and weekend hours, we’re with you through the whole process.
We work with 30+ lenders to get you the best deal.
Not All Banks Offer SMSF Loans
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What inspires me the most is the opportunity to help Australians achieve their financial goals through property ownership. Whether it’s guiding a first-time homebuyer through the process of purchasing their first home or assisting seasoned investors in expanding their portfolios, I find immense satisfaction in knowing that I’ve played a role in someone’s financial success.
Andrew Hadjidemetri,
AFMS Group Director (Accountants Daily Interview)
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Common SMSF Loan Questions
Can you refinance an SMSF loan?
Yes, in general, you can refinance an SMSf loan. However, there are strict ATO rules under the LRBA structure when it comes to refinancing. Get in touch with our team to discuss your plans.
What documents do I need to apply for an SMSF loan?
There are many documents needed to apply for an SMSF loan due to the upfront ATO registration and fund setup:
- Essential SMSF documents: Trust deed and declarations from each SMSF trustee, personal ID for all members, 2 years of audited financial statements, tax returns, and bank statements.
- Financial proof: 1-year super statement and contribution history, and an accountant’s letter confirming serviceability.
- Property and loan: Contract of sale, bare trust deed, and rental appraisal/lease with projected income.
AFMS handle all of the paperwork requirements to keep you on track for your SMSF loan.
How long does it take to get approved for a SMSF Loan?
Depending on your financial situation, the time taken to pull together all the documents and the ATO approval timeline, it could take between 4-8 weeks to receive the final SMSF loan approval. We work with you to review all documentation and get a fast pre-approval with our lender, so you can proceed with the property search. With our guaranteed 4-hour response time and flexible evening and weekend hours, we can help you navigate with clarity and speed.
Why do I need an SMSF loan broker instead of going through my bank?
Most banks (including the big four) no longer offer SMSF loans, so there’s a risk that your bank won’t have a suitable product. When you use a mortgage broker, you will have access to multiple specialist lenders and products not offered to the general market. This gives you options when choices are scarce.
A mortgage broker’s expertise can also guide you through the SMSF loan complexities, negotiate rates and act as a compliance buffer to spot any issues in the approval stage.
Do AFMS charge for their SMSF Loan service?
AFMS Group mortgage brokers are free of charge for consultation. We make money from the commercial relationships we have with lenders. Contact us today to discuss the whole process and your retirement planning.