Your super,
working harder in property.
Limited recourse: the lender can chase the property, not the rest of your super.
A limited recourse borrowing arrangement (LRBA) lets your SMSF borrow to buy property while quarantining the risk. If the loan defaults, the lender's recourse stops at the asset held in the bare trust. The rest of the fund stays out of reach.
That structure gives trustees real leverage inside super without exposing the whole balance. But it only works if it is built right from the start. Get the order of steps wrong and you risk a non-compliant arrangement and an ATO review. We build the structure first, then go to a lender.
This page is general information only — not financial, tax or superannuation advice. Confirm your fund's position with your licensed financial adviser or accountant before acting.
The SMSF trustee is the beneficial owner. A bare trust holds legal title as security for the life of the loan.
The asset must be a single acquirable asset. No improvements during the loan that change its character.
Rent and repayments flow through the SMSF's own bank account. Personal guarantees from members are usually required.
The fund must be established and compliant before the loan is applied for. We coordinate with your accountant or administrator.
From fund setup to first drawdown.
SMSF lending pulls together your fund, your advisers, a bare trust, and a specialist lender — all in the right order. Coordinated correctly, it is clean. Out of order, it stalls.
The honest answer on timing: SMSF applications are document-intensive, and the bare trust has to be in place before settlement. We tell you upfront what the sequence demands so nothing surprises you at the title transfer.
Establish your SMSF structure
We confirm the fund is correctly established, compliant, and holds enough liquid assets to service the loan and meet contributions. We coordinate with your accountant or SMSF administrator.
Identify the right property
Investment strategy, the sole purpose test, and related party rules all constrain what the fund can hold. We work through the acquisition with you and your adviser before you commit.
Structure the bare trust
The LRBA needs a bare trust in place before settlement. We coordinate with your solicitor — the step that catches first-time SMSF buyers off guard.
Select the right lender
SMSF lending is a specialist product, and commercial SMSF loans narrow the field further. We know who is active and what their appetite is right now.
Manage the application
Trust deed, investment strategy, member details, contract, bare trust deed, SMSF financials. We run the process across your accountant, solicitor, and the lender.
Review at loan end
When the loan is repaid, legal title transfers from the bare trustee to the SMSF trustee. We plan that transition and review whether the structure still suits the fund.
FAQs
Can an SMSF borrow money to buy property?
Yes — but for commercial property only. Under a limited recourse borrowing arrangement (LRBA), an SMSF can borrow to acquire a single acquirable commercial asset, with the lender's recourse limited to the asset held in the bare trust rather than the broader SMSF. As of August 2026, LRBAs can no longer be used to buy residential property.
Can an SMSF still borrow to buy residential property?
No. As of August 2026, limited recourse borrowing arrangements (LRBAs) can no longer be used to purchase residential property. SMSF property borrowing is now limited to commercial (business real) property. This is general information, not financial or tax advice — confirm your fund’s position with your licensed financial adviser or accountant.
What is a bare trust in SMSF property lending?
A bare trust (or holding trust) holds legal title to the property on behalf of the SMSF trustee during the loan period. When the loan is repaid, legal title transfers to the SMSF trustee. This structure is what makes an LRBA compliant — without the bare trust, the arrangement is non-compliant.
Can an SMSF buy commercial property in Canberra?
Yes — including commercial property where a related party (such as a business owned by SMSF members) occupies the premises, provided rent is paid at arm's length market rates. The lender panel for SMSF commercial property is narrow, but SMSF commercial loans are available through the right lenders — and we know who is active.
How much can an SMSF borrow to buy commercial property?
SMSF commercial property lending can reach up to 80% LVR with the right lender. The fund's liquid-asset position post-settlement, the members' financial position, and the property type all affect how much a particular lender will advance. Figures are illustrative and subject to lender assessment. Residential SMSF borrowing is no longer available as of August 2026.
What your SMSF can actually hold.
As of August 2026, an SMSF can no longer borrow to buy residential property under an LRBA. SMSF borrowing now applies to commercial (business real) property only — here's what your fund can still hold. General information only, not financial or tax advice.
The LRBA requirements.
An LRBA has specific compliance requirements that must be satisfied before settlement. Miss one and you cross the line from a compliant structure to a non-compliant one that can trigger an ATO review.
The parameters that govern an SMSF loan.
The benchmarks that decide what your fund can borrow, and on what terms.
For commercial property; lower for specialist or single-tenancy assets. Illustrative and subject to lender assessment.
SMSF loans run on standard P&I or interest-only terms, depending on strategy.
Most lenders require the fund to retain meaningful liquid assets post-settlement.
Personal guarantees from all members are standard SMSF lender requirements.
We know which SMSF lenders are genuinely active on ACT commercial security and what their appetite is.
Who we work with.
Black Mountain Financial
Ready to discuss your SMSF commercial property strategy?
Start a conversation— Related Services
Commercial Property
Purchase, refinance, and equity release across office, industrial, retail and mixed-use — including owner-occupier funding.
Construction Loans
Staged construction facilities for residential, mixed-use and commercial builds across the ACT and regional NSW.
Development Finance
Construction loans and capital-stack structuring for property developers in the ACT and regional NSW.
Start the Conversation
Get in touch
Our team is ready to discuss your finance needs.
Contact Details
What to Expect
- Honest assessment of your options
- Response within 24 hours
- Strategic insight, not a sales pitch
- No obligation discussion
Start a Conversation
Talk to us about your SMSF property goals — whether you're ready to purchase or still planning the structure.
No obligation, no sales pitch. We reply within 24 hours.