Self-Managed Super Fund
An SMSF loan allows Australians to use their superannuation to invest in property, either residential or commercial.
These loans are highly regulated and require the right structure, strategy, and expert guidance to ensure compliance. Typically, lenders will allow borrowing of up to 70–80% of the property value, and you’ll need at least 10% of the loan amount in cash reserves within your fund to cover ongoing costs. Loan repayments are made from your superannuation balance, not your personal income.
There are strict rules to follow—major renovations aren’t permitted, and you (or related parties) can never live in the property, even after retirement. Because the SMSF itself cannot legally borrow, the loan is held through a separate Custodian or Bare Trust, which later transfers ownership to the SMSF once the debt is cleared.
With the right structure and guidance, SMSF loans can be a powerful way to grow your retirement wealth, but they’re not suitable for everyone. At Lime Money, we work with financial advisers to help you secure the most appropriate SMSF lending solution for your situation.
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