Limited recourse borrowing for residential and commercial super fund purchases
Borrowing inside super is a narrow, heavily regulated corner of lending. APW Finance is an SMSF Loan Broker in Sydney arranging limited recourse borrowing arrangements for funds across NSW.
Limited recourse is the defining feature. The lender’s security is confined to the property purchased, so the fund’s other assets sit outside any claim if the loan defaults.
That protection is why lenders price SMSF loans above standard investment lending, and why fewer of them write these at all. A broker for SMSF property loans earns its place by knowing who still does.
Before any lender looks at a file, the fund itself has to stack up:
The sole purpose test governs everything. The property must be held to provide retirement benefits to members, which is why you cannot live in a residential property your fund owns, or rent it to family.
Commercial premises are the exception worth knowing about. Business real property can be leased back to a member’s own business at market rent, which is the single most common reason business owners set up a fund.
Our guides to whether an SMSF can borrow to buy property and how an LRBA works cover the structure in detail.
We work alongside your accountant and adviser rather than around them. Structure and compliance sit with them; our part is finding a lender whose policy fits the fund as it actually stands.
You will get a written position before anything is lodged, covering deposit, liquidity, likely rate and the documents your fund needs to produce.
Costs are worth understanding up front. SMSF lending carries a rate margin over standard investment loans, and establishment involves legal and accounting work the fund pays for.
That overhead is why the strategy suits funds with a reasonable balance and a long horizon rather than every trustee who likes the idea of owning property inside super.
We arrange the loan to sit correctly within the bare trust and LRBA framework the ATO requires, working with your accountant on the fund's side. Getting the trust established before exchange is the step most commonly missed.
Funds can purchase either, though lender appetite differs sharply between them. Commercial premises leased back to a member's business is permitted where the property qualifies as business real property and rent is set at market rates.
Rate types and terms are chosen against the fund's contribution flow and investment horizon rather than personal preference. Many trustees fix a portion so that repayments stay predictable against known contribution levels.
The lender's security is restricted to the property inside the bare trust, so the fund's shares, cash and other holdings are not exposed. That protection is the reason an SMSF Loan Broker in Sydney treats the structure as more important than the rate.
An SMSF Loan Broker in Sydney checks the fund before the property. Deposit, liquidity, trust structure and the investment strategy all have to line up before a lender will look at the purchase at all.
Tell us the fund balance, member contributions and the property you have in mind. Your SMSF Loan Broker in Sydney will confirm feasibility within one business day.
If the deposit is the question, our guide to SMSF loan deposit requirements sets out what lenders currently expect.
Superannuation borrowing rules are administered by the Australian Taxation Office.
APW Finance Pty Ltd delivers expert lending solutions with personalised service, empowering clients across residential, commercial, and business sectors.