If you are planning to buy an investment property through your super, the right SMSF mortgage broker in Sydney makes all the difference.
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AFMS Group is an award-winning, Sydney-based brokerage that specialises in self-managed super fund lending, with access to the specialist lenders who still write these loans now that most major banks have stepped away. Led by principal broker Andrew Hadjidemetri, we turn a genuinely complex process into a clear, compliant, and straightforward one, so your fund can invest in property with confidence.
Book a free consultation to find out what your SMSF can do.
Book a ConsultationAn SMSF loan lets a self-managed super fund borrow money to buy an investment property. The fund owns the property, the rent and your ongoing super contributions help cover the repayments, and any growth in the property's value stays inside your super.
Because superannuation money is involved, these loans work differently to a normal home or investment loan. They must be set up as a limited recourse borrowing arrangement, the property is held in a separate trust until the loan is repaid, and the investment has to meet strict rules set by the Australian Taxation Office. That is where an SMSF mortgage broker earns their keep: we find a suitable lender, structure the loan correctly, and coordinate with your accountant and adviser so everything stays compliant. If you are still weighing up the idea, our guide on whether you can use your super to buy a house is a good place to start.
SMSF lending has a few moving parts. Understanding them upfront makes the rest of the process far less daunting.
An SMSF must borrow through a limited recourse borrowing arrangement, or LRBA. 'Limited recourse' means that if the loan is ever in default, the lender's claim is limited to the single property bought with that loan. The fund's other assets, such as shares or cash, are protected. This extra protection for your super is also why lenders assess SMSF loans more cautiously than standard loans. You can read the detail on the ATO's limited recourse borrowing arrangements page.
Under an LRBA, the property is not held directly by your super fund while there is a loan over it. Instead, it is held in a separate holding trust, often called a bare trust, until the loan is fully repaid. Once the debt is cleared, ownership can transfer to the SMSF. We generally recommend a corporate trustee for the holding trust, and the holding trustee must be separate from your SMSF trustee. It sounds technical, but getting this structure right from day one is exactly the kind of thing your broker and accountant handle for you.
If you have bought an investment property in your own name before, an SMSF loan will feel familiar in places and very different in others. Here is how the two compare.
| Feature | Standard Investment Loan | SMSF Loan |
|---|---|---|
| Who borrows | You personally, or via a company or trust | Your self-managed super fund |
| Lender recourse | Full recourse across your assets | Limited to the single property in the LRBA |
| Maximum loan-to-value ratio | Higher, so a smaller deposit is possible | Lower, so a larger deposit is usually needed |
| Liquidity | No fund buffer required | Fund must keep a cash buffer after settlement |
| Interest rates | Generally lower | Generally higher |
| Choice of lenders | Most banks and lenders | A smaller panel of specialist lenders |
| Renovations | You can renovate and improve freely | Borrowed funds cannot improve or change the asset |
| Loan assessed against | Your personal income and position | The fund's balance, contributions, and rent |
Your SMSF can borrow to buy either residential or commercial property, and the rules and lending terms differ for each.
An SMSF home loan lets your fund buy a residential investment property, such as a house, townhouse, or apartment. The catch is the arm's-length rule: the fund cannot buy the property from you or a related party, and you, your family, and other related parties cannot live in it or rent it. The property must be a genuine investment, leased to an unrelated tenant at market rent. Compared with buying in your own name, an SMSF property loan usually needs a larger deposit and comes with a lower maximum loan-to-value ratio.
An SMSF commercial property loan is one of the most popular uses of SMSF lending, particularly for business owners. Through 'business real property' rules, your fund can buy commercial premises and lease them back to your own business at market rent, which many owners use to pay rent into their own super rather than a landlord's pocket. Commercial SMSF loans often allow more favourable terms than residential, and the arrangement can offer useful cash-flow and asset-protection benefits. If you also need finance outside super, we can help with commercial property finance as well.
How much your SMSF can borrow to buy property depends on four things: your fund's balance, the deposit it can contribute, the lender's maximum loan-to-value ratio, and whether rent plus your ongoing contributions comfortably cover the repayments.
On top of the deposit, lenders expect the fund to retain a cash buffer after settlement, so it can meet repayments and costs without selling the property. Most lenders also set a minimum loan size, and in practice your fund usually needs a healthy balance before SMSF lending stacks up. Commercial property often supports a higher borrowing level than residential. The fastest way to get a feel for the numbers is our SMSF loan repayment calculator, and then a quick chat with us for an accurate figure based on your fund.
SMSF loan interest rates generally sit a little higher than standard investment loans. There are fewer lenders in the market, the limited recourse structure carries more risk for them, and the loans are more complex to assess, all of which is reflected in pricing.
It also helps to budget for the full picture rather than the rate alone. Costs to plan for can include the loan interest rate and any lender or setup fees, the cost of establishing the holding trust and a corporate trustee, legal and conveyancing fees, and ongoing SMSF administration and audit. Because the lender panel is specialised, comparing it properly is where a broker adds real value: we shop your scenario across our 30+ SMSF lenders to find the best available SMSF loan rates for your fund.
For current numbers tailored to your situation, book a consultation.
Book a ConsultationSMSF property investment comes with rules the ATO takes seriously. Knowing them protects your fund's compliance and its concessional tax treatment.
An SMSF can only borrow through a limited recourse borrowing arrangement, and each arrangement can hold just a single asset. If your fund wants to buy more than one property, each one needs its own LRBA and holding trust.
You, your relatives, and other related parties cannot live in, holiday in, or rent a residential property owned by your SMSF. Your fund also cannot buy a residential property from you or a related party. The key exception is business real property: commercial premises used wholly and exclusively in a business can be bought from a related party at market value and leased back to your business.
Borrowed money can be used to maintain and repair an SMSF property, but it cannot be used to improve it or change its fundamental character, for example turning a house into flats. Improvements can sometimes be funded from the SMSF's own cash, but the rules are strict, so always check before starting work.
Every investment your SMSF makes must satisfy the sole purpose test, meaning it exists solely to provide retirement benefits to members, not a present-day perk. SMSFs are overseen by the ATO and audited each year, so structure and record-keeping matter. AFMS Group handles the lending and works alongside your accountant and adviser, who keep the fund compliant. You can review the full rules on the ATO's restrictions on investments page.
Done well, and with the right advice, buying property through an SMSF can offer some genuine advantages.
An SMSF puts you in the driver's seat. Rather than leaving your retirement savings entirely to a fund manager, you and your fellow trustees choose the property and the strategy, with professional guidance along the way.
Investment earnings inside super are taxed in the concessional super environment, and capital gains tax can be treated favourably, particularly once the fund is in pension phase. The exact outcome depends on your circumstances, so confirm the detail with your accountant. For broader context, see our guide to the tax benefits of investment property.
Because the loan is limited recourse, a problem with the geared property does not put the fund's other assets at risk. Super assets also generally enjoy strong protection, which can be reassuring for business owners in particular.
An SMSF can have up to six members, so families or partners can pool their super balances. Together, the fund may be able to buy an investment property that none of the members could afford individually.
SMSF lending is powerful, but it is not for everyone. An honest assessment upfront saves a lot of trouble later.
It tends to suit trustees with a solid fund balance, steady contributions, and a long investment horizon, as well as business owners who want to buy their own premises through super. It is usually a poor fit if your balance is modest, you may need quick access to the money, your time horizon is short, or you are uncomfortable with the responsibilities of running a fund.
Either way, you do not have to work it out alone. AFMS Group handles the lending side as your SMSF mortgage broker, while your accountant and licensed financial adviser confirm the strategy suits your retirement goals. To be clear, AFMS Group provides credit assistance, not financial advice, and we will always tell you honestly if an SMSF loan is not the right move.
Not sure whether an SMSF loan suits your situation? Take our quick check below for an instant indication, then book a free consultation to confirm what is right for your fund.
Select an answer to all five questions for your instant indication.
We keep the process structured and transparent, so you always know what is happening and what comes next.
We get to know your fund, your goals, and your borrowing capacity, and confirm whether SMSF lending suits your situation.
We coordinate the LRBA and holding trust set-up with your other professionals and compare our panel of specialist SMSF lenders to find the right fit.
We arrange loan pre-approval so you can shop for a property with confidence and move quickly.
Once you have found the property, we manage valuation, formal approval, and the compliance checks the lender requires.
We see the loan through to settlement, then stay in touch with annual reviews and proactive rate checks.
As a guide, allow several weeks from start to approval for SMSF structuring and assessment. We will give you a realistic timeframe for your situation at the consultation.
With AFMS Group, you deal with a principal, not a call centre. Andrew Hadjidemetri is personally involved in client strategy, has helped settle more than $1 billion in loans, and was recognised as a Top 10 Broker in Australia (MPA 2025). Meet Andrew Hadjidemetri, Principal Broker.
Most of the big banks have exited SMSF lending, so the loans now sit largely with specialist and non-bank lenders. We compare a panel of more than 30 lenders to find one that suits your fund, your property, and your borrowing needs, rather than squeezing you into a single product.
LRBAs, holding trusts, the sole purpose test, and ATO compliance are a lot to take in. We translate the jargon into plain English, manage the moving parts, and coordinate with your accountant and adviser so nothing falls through the cracks.
AFMS Group has earned 800+ five-star reviews and settled over $1 billion in home loans. We are an MFAA member operating under Australian Credit Licence 389087. Read our 800+ five-star reviews and see our award-winning brokers.
When you arrange an SMSF loan with AFMS Group, you are not handed off to a call centre. You work directly with our principal-led Sydney team. Andrew Hadjidemetri leads every SMSF loan personally, supported by senior credit and finance brokers, including Jordan Coelho and Nicholas Del Duca, who manage your application end to end.
With extended hours seven days, 8am to 8pm, we're on hand to get the deal done efficiently. Meet the AFMS Group team.
As a Sydney-based brokerage, we understand the local market that SMSF investors are buying into, from business owners purchasing commercial premises across the city to investors targeting growth suburbs. We work with clients right across the Sydney metro, including Randwick, Coogee, Chatswood, Manly, Parramatta, and Penrith. If you are still researching where to buy, our list of the best Sydney suburbs to invest in 2026 is a useful starting point.
Want a quick sense of the numbers before you call? Our SMSF loan calculator estimates what repayments might look like, and gives you an indicative feel for your SMSF borrowing capacity. Try the SMSF loan repayment calculator, and read how to use the SMSF loan repayment calculator if you would like a hand. Calculators give estimates only; a proper assessment with one of our brokers confirms what your fund can actually borrow.
Buying property through your super should feel exciting, not overwhelming. As Sydney's director-led, award-winning SMSF mortgage broker, AFMS Group gives you access to 30+ specialist lenders, structures the loan correctly, and works hand in hand with your accountant and adviser, so your fund can invest with confidence. Whether you are buying your first SMSF investment property, purchasing your business premises, or refinancing an existing SMSF loan, we will make it clear and straightforward.
Not directly, and not one to live in. You cannot withdraw your super to buy a home, and you cannot buy a home to live in through your super. What a self-managed super fund can do is borrow to buy an investment property, which the fund owns and rents to an unrelated tenant. For more, read our guide on whether you can use your super to buy a house.
An SMSF mortgage broker arranges the loan your self-managed super fund uses to buy property. Because most major banks have stepped back from SMSF lending, our main value is access to the specialist lenders who still offer these loans, plus help structuring the limited recourse borrowing arrangement correctly and coordinating with your accountant and adviser.
SMSF loans generally need a larger deposit than standard property loans, and your fund must also keep a cash buffer after settlement. The exact amount depends on the lender and whether the property is residential or commercial. We will calculate your position precisely in a consultation.
Your SMSF's borrowing power depends on its balance, the deposit available, the lender's maximum loan-to-value ratio, and whether rent and ongoing contributions comfortably cover repayments. Commercial property often allows a higher level than residential. Try our SMSF loan repayment calculator for an estimate, then speak to us for an accurate figure.
The 5% rule is the in-house asset limit. An SMSF generally cannot hold more than 5% of its total assets as in-house assets, such as a loan to, investment in, or lease with a related party. It is one of several compliance rules the ATO enforces, which is why SMSF property investment needs careful structuring.
Most of the big four banks withdrew from SMSF lending several years ago, so today these loans mainly come from specialist and non-bank lenders. The right one depends on your fund, the property type, and your needs. As an SMSF mortgage broker, AFMS Group compares a panel of 30+ lenders to find the most suitable option.
For residential property, no, your SMSF cannot buy it from you or a related party. The main exception is business real property, meaning commercial premises used wholly and exclusively in a business, which can be purchased from a related party at market value and leased back to your business.
No. You, your relatives, and other related parties cannot live in, holiday in, or rent a residential property owned by your SMSF. Breaching this can lead to significant ATO penalties and the fund losing its concessional tax treatment. Commercial premises, however, can be leased to your own business at market rent.
Yes. Setting up and running an SMSF, and deciding whether to borrow within it, involves financial, tax, and legal considerations. AFMS Group handles the lending as your SMSF mortgage broker and works alongside your accountant and licensed financial adviser, who confirm the strategy suits your retirement goals.
Allow several weeks. The timeline depends on setting up the correct structure, including the holding trust, lender assessment, property valuation, and compliance checks. Getting pre-approval early helps you move quickly when you find the right property. We will give you a realistic timeframe at your consultation.
Often, yes. If your current SMSF loan has a high rate or restrictive terms, refinancing to another specialist lender may reduce costs or improve flexibility, provided the loan still meets SMSF lending and compliance rules. We can review your existing arrangement and compare current options.
This page provides general information only and does not take into account your personal objectives, financial situation, or needs. It is not financial or tax advice. SMSFs and SMSF lending are complex and carry risks; you should seek advice from a licensed financial adviser and your accountant before borrowing through an SMSF. AFMS Group provides credit assistance only. Australian Credit Licence 389087, Credit Representative 523450. MFAA member.
