- Firstmac, an Australian non-bank lender, offers residential and commercial SMSF loans.
- SMSF trustees can choose between variable and fixed rates (2, 3, or 5 years) and borrow up to 80% LVR.
- Firstmac SMSF loans are accessible through accredited mortgage brokers or directly through the company’s sales staff.
Self-managed superannuation funds (SMSF) are tasked with making high-performing investments in the best interests of their members. Asset choices can include property investments, which is set out and specified in the fund’s investment strategy.
While there are strict rules surrounding what properties are suitable for SMSFs and how they can be used after they’re purchased, property investment is among the popular asset choices of these funds.
New Rules Announced
On 23 June 2026, the federal government announced it would no longer allow self-managed superannuation funds (SMSFs) to borrow money to fund investments in residential property.
From the date the legislation becomes official, SMSFs will have 45 days to finalise contracts already in place. (At this stage, the deadline is expected to be in mid- to late-August.)
Sale contracts and limited recourse borrowing arrangements finalised during this period will not be affected by the new rules.
After the 45 day period, SMSFs can no longer purchase residential property via a loan, but will still be permitted to buy a residential property outright, without finance.
SMSFs with existing limited recourse borrowing arrangements in place will be permitted to refinance loans under existing refinancing rules.
The new SMSF rules apply to residential property purchases only and will not affect SMSFs buying commercial or industrial properties.
This article will be updated when full details are known.
See also: How to set up a SMSF
According to the latest figures from the Australian Tax Office (ATO), roughly 11% of SMSF investments are allocated in assets under limited recourse borrowing arrangements (LRBA), which are predominantly for property.
Chief financial officer at Firstmac James Austin said SMSF investment through residential real estate continues to go from strength to strength.
"Investment of superannuation funds into residential real estate is increasingly popular given the relative stability of housing prices, and the tax advantages associated with superannuation," Mr Austin told Savings.com.au.
Firstmac’s SMSF home loans offer a competitive solution for customers looking to refinance or purchase a new residential investment property within their super fund.
See also: How to buy a property through an SMSF
How do Firstmac SMSF loans work?
Firstmac’s residential SMSF loan product is essentially a home loan specially designed for the purchase or refinance of a standard residential investment property, such as:
- House
- Unit
- Townhouse
However, a Firstmac SMSF residential loan can’t be used for:
- Vacant land
- Mutli-dwelling titles
Firstmac’s commercial SMSF loan, on the other hand, can be used for the purchase or refinance of a commercial property, including:
- Industrial
- Retail
- Office
- Professional suites
- Child care
- Mixed use
- Residential commercial
The loans work much the same as a regular investment home loan but for the purposes permitted under legislation governing SMSFs and a fund’s trust deed, which sets out the rules of the SMSF as an entity.
Under the loan terms and conditions, the borrower is the SMSF trustee with the property held in trust by a corporate entity (corporate trustee structure).
Firstmac SMSF loans
Here are the SMSF loans available through Firstmac:
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
7.14% p.a. | 7.19% p.a. | $3,374 | Principal & Interest | Variable | $0 | $220 | 70% | Disclosure | ||||||||||||
7.44% p.a. | 7.39% p.a. | $3,476 | Principal & Interest | Fixed | $0 | $221 | 80% | Disclosure | ||||||||||||
7.34% p.a. | 7.35% p.a. | $3,441 | Principal & Interest | Fixed | $0 | $221 | 80% | Disclosure | ||||||||||||
7.84% p.a. | 7.62% p.a. | $3,613 | Principal & Interest | Fixed | $0 | $221 | 80% | Disclosure | ||||||||||||
7.29% p.a. | 7.34% p.a. | $3,424 | Principal & Interest | Variable | $0 | $221 | 80% | Disclosure |
How does a Firstmac SMSF loan differ from a regular home loan?
The main difference between an SMSF loan and a standard home loan is the recourse. SMSF loans are what’s called a limited recourse borrowing arrangement, or LRBA for short.
With an LRBA, the lender is limited in recourse, which means if the borrower defaults on the loan, the lender can only go after the asset the mortgage is secured against.
It can’t go after other assets held in the SMSF, which is why interest rates are typically higher on SMSF loans than regular home loans.
See also: A guide to SMSF borrowing
It’s crucial SMSF funds looking to invest in property abide by the restrictions on the type of property purchased and how it is used, including:
- A trustee, or anyone related to the trustee, cannot live in a residential property purchased through the SMSF.
- A trustee, or anyone related to the trustee, cannot rent the property purchased through the SMSF.
- The SMSF cannot buy a property owned by a trustee or anyone related to the trustee.
- The purchase must meet the sole purpose test of solely providing retirement benefits to fund members.
If the property the SMSF is looking to purchase meets the criteria, Firstmac SMSF loans offer an easy-to-understand policy and a streamlined approval process, consistent with the company’s broader lending framework.
At Firstmac we like to keep things simple, even SMSF lending.
We offer simple, low-fee products with both variable and fixed-rate options and a straightforward application process.
Our residential SMSF loans go through the same quick approval process as our regular loans. We do everything in-house, which gives us end-to-end control of the process and makes SMSF lending truly simple.
Key features of Firstmac SMSF loans
- Minimum loan amount – $50,000
- Maximum loan amount – $2 million
- Loan terms – 15 to 30 years
- Maximum loan-to-value ratio (LVR) of 80%
- Variable interest rate
- Fixed interest rate (2-, 3-, and 5-year terms)
- Rate lock option
- Unlimited extra repayments (variable rate only)
- Principal and interest (P&I) repayment
- Choice of weekly, fortnightly or monthly repayments
- No ongoing or annual fees
Firstmac SMSF loan fees
Firstmac SMSF loans come with no application and ongoing or annual fees. Settlement and legal fees are also waived for refinancers. However, some charges may still apply, including:
- Valuation fee – $221 or at cost
- Lenders legal fee – $490 for new purchase
- Discharge fee – $300
- Optional rate lock fee – $350 (for fixed rates and compulsory for 5-year terms)
Fees accurate at the time of writing and may be subject to change.
How to apply for an SMSF loan with Firstmac
Firstmac emphasises a streamlined and straightforward application process by reducing paperwork and offering easy-to-understand policies. To apply:
- Once you’ve familiarised yourself with Firstmac’s SMSF loan, confirm whether your fund and the property you intend to finance are eligible.
- Contact Firstmac directly on its website.
- Fill out and submit an application form. Indicate your choice between residential and commercial SMSF loan, and specify the loan amount, LVR, and interest rate type.
- Provide the required documentation, which may include SMSF paperwork and property details (more below).
- Wait for approval and settlement. Firstmac manages the entire workflow in-house, which speeds up the process.
Required documents
All applications require:
- Certified copies of SMSF trust deed and Bare Trust or Property Trust Deed
- Confirmation that the SMSF is ‘Compliant’ on Super Fund Lookup
- Signed loan application form with submission notes (DocuSign for SMSF is available through Firstmac OnTrack secure online portal)
- Recent super fund statement/s evidencing contributions, cash, investments, rentals
- Evidence of rental of the proposed property, and rental statements for any other properties held by the fund not taken as security (if applicable)
- Two recent payslips evidencing super contributions (employed)
- Last two years' SMSF cash management account statements or existing superannuation statements (self-employed)
For new purchase applications:
- Contract of sale (fully signed and dated) for the property being purchased with either Trustee of Bare Trust or Property Trust as purchaser
- A copy of a nomination form nominating the Trustee of the Bare Trust or Property Trust as purchaser (for VIC, SA, TAS)
For refinance applications:
- Previous independent legal advice with six months statements for the loan being refinanced
Who can apply for a Firstmac SMSF loan
Firstmac SMSF loans require the following criteria to be met:
- Individuals 18 years or older at the time of the application
- Australian or New Zealand citizens or permanent residents
- SMSFs with corporate trustee structure
- Have ongoing and stable employment
- Have acceptable credit rating
Firstmac industry accolades
Firstmac has consistently earned industry acclaim in key areas such as broker satisfaction, sustainability, digital excellence, and operational performance.
Latest highlights:
- In 2025, Firstmac topped a national broker survey for the seventh consecutive year, winning the title Best Non-Bank in Australia.
- Also in 2025, Firstmac was named a finalist in the SMSF Technology Innovator of the Year category, a recognition of the company’s commitment to simplifying SMSF lending.
- Firstmac was honored among the most sustainable financial services firms in 2024.
- In 2024, Firstmac was recognised for its outstanding mortgage broking service and advice.
List of Firstmac’s awards and recognitions
Savings.com.au’s two cents
Buying property through a self-managed super fund can be complex, but Firstmac has made it simple, straightforward, and flexible. And they have the awards to prove it.
Simplicity and transparency are key themes. Firstmac’s SMSF loans come with $0 application and ongoing fees, a clear borrowing framework, a choice of variable or fixed rates, and terms up to 30 years. For trustees, this clarity matters.
Some SMSF loans may include layered fees, tighter LVRs, or complex servicing rules. Firstmac’s policy is relatively easy to follow, provided the fund meets standard SMSF requirements.
Borrowers are also given flexibility, whether in choosing their repayment schedule or how they access the non-bank lender’s SMSF loans.
Firstmac SMSF loans can be accessed either through accredited mortgage brokers or directly via its internal sales staff. This means those confident navigating SMSF borrowing can deal direct, while others who may prefer guidance can tap a broker.
In the interests of full disclosure, Savings.com.au is an associate of Firstmac.
Frequently Asked Questions
SMSF loans offered by Firstmac are available in variable rates and fixed rates, with an option to ‘lock’ the rate at the time of application (for fixed rates only) for a fee.
Firstmac allows a maximum loan-to-value ratio (LVR) of up to 80% for both residential and commercial SMSF loans.
Yes, Firstmac offers both variable and fixed-rate SMSF loan options.
- Variable-rate SMSF loans feature flexibility with unlimited additional repayments.
- Fixed-rate SMSF loans are available in 2-, 3-, or 5-year terms, with additional repayments capped at $10,000 a year.
Not necessarily. While Firstmac SMSF loans are commonly arranged through accredited mortgage brokers, they are also available directly through its internal sales team, meaning a broker is not required.
Yes, 80% of gross rental income from the SMSF-owned property is accepted and included in the servicing calculation.
