SMSF Loan Rates From 6.69%
Rates updated 17 September 2026 – Savings.com.au helps you compare SMSF loans for commercial property and refinancing from a range of Australian lenders.
| 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.89% p.a. | 6.91% p.a. | $3,290 | Principal & Interest | Variable | $0 | $230 | 60% |
| Promoted | Disclosure | ||||||||||
6.89% p.a. | 6.99% p.a. | $3,290 | Principal & Interest | Variable | $0 | $0 | 60% | Disclosure | ||||||||||||
6.69% p.a. | – | $3,223 | Principal & Interest | Variable | $395 | $1,595 | 60% | Disclosure | ||||||||||||
7.84% p.a. | – | $3,613 | Principal & Interest | Variable | $0 | $0 | 70% | |||||||||||||
7.84% p.a. | – | $3,613 | Principal & Interest | Variable | $0 | $0 | 65% | |||||||||||||
7.14% p.a. | 7.19% p.a. | $3,374 | Principal & Interest | Variable | $0 | $220 | 70% | Disclosure | ||||||||||||
7.24% p.a. | 7.26% p.a. | $3,407 | Principal & Interest | Variable | $0 | $230 | 80% | Disclosure | ||||||||||||
6.79% p.a. | – | $3,256 | Principal & Interest | Variable | $395 | $1,595 | 70% | Disclosure | ||||||||||||
7.85% p.a. | 8.27% p.a. | $3,617 | Principal & Interest | Variable | $0 | $445 | 70% | |||||||||||||
6.94% p.a. | 6.96% p.a. | $3,306 | Principal & Interest | Variable | $0 | $230 | 70% | Disclosure |
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Hot September SMSF Loan Rates & Deals
One of the lowest smsf loan rates in our database is currently 6.69% (comparison rate ) from Excel Funding Group with their SMSF 60 Residential Refinance.
Around 1.1 million Australians have a self-managed super fund (SMSF), with more than 660,000 SMSFs currently in existence according to recent data from the ATO. Around 10% of these funds have an SMSF loan via a limited recourse borrowing arrangement (LRBA), holding around $63 billion worth of assets - primarily residential and commercial property.
While the big four banks no longer offer SMSF loans, several other lenders do. Here are some of the top deals for SMSF loans on the market at the moment:
- Excel Funding Group - SMSF 60 Residential Refinance with 6.69% p.a. ( p.a. comparison rate)
- loans.com.au - SMSF Residential Refinance (Variable Inv P&I <60%) with 6.89% p.a. (6.91% p.a. comparison rate)
- Reduce Home Loans - Ezy SMSF 60 Residential (Refinance) with 6.89% p.a. (6.99% p.a. comparison rate)
- Yard - SMSF Residential Loan <60% LVR with 6.90% p.a. (7.30% p.a. comparison rate)
- La Trobe Financial - SMSF Residential with 7.04% p.a. ( p.a. comparison rate)
Until next month 🫡
For more information on how we’ve selected these products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of 17 September 2026. View disclaimer
Changes to SMSF borrowing rules
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.
The legislation received assent on 26 June 2026, triggering a 45-day period that SMSFs have to finalise contracts already in place. The deadline is 10 August 2026.
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 (LBRAs) 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.
What is an SMSF loan?
An SMSF loan is a type of finance that allows a self-managed super fund (SMSF) to borrow money to purchase an investment property.
In Australia, SMSF borrowing is structured as a limited recourse borrowing arrangement (LRBA). This means the loan is secured only against the asset being purchased, limiting the recourse of the lender in case of default.
SMSFs are designed to give members greater control over their retirement savings, and SMSF loans can allow the fund to leverage its position to invest in higher-value assets.
Which lenders offer SMSF loans in Australia
SMSF loans are now primarily designed for the purchase of commercial property – a popular asset class held in SMSFs.
Many traditional banks do not offer SMSF loans, with several non-bank lenders filling the gap. Below are some of the lenders offering SMSF loans in Australia:
- loans.com.au
- Firstmac
- La Trobe
- Liberty
- WLTH
- Reduce Home Loans
- Take note: The SMSF lending landscape changes, so it’s important to compare current options or consider speaking with a specialist.
Staying compliant with your SMSF loan
The sole purpose of an SMSF is to provide retirement benefits to its members. This sole purpose test is the cornerstone of all SMSF activities, ensuring that the fund remains focused on securing members' financial futures. Any deviation from this objective can lead to compliance breaches and significant penalties.
Trustees must always ensure their decisions and actions are aligned with this fundamental principle to maintain the integrity and compliance of the fund.
How to compare SMSF lenders
Like with standard home loans, there are a few key things you need to consider when comparing SMSF loans:
Interest rates
SMSF loans typically have higher interest rates than standard home loans due to their limited recourse structure and increased risk to lenders.
Fees
Common fees include:
- Establishment or settlement fees
- Monthly or annual fees
- Property valuation fees
These are often reflected in the comparison rate.
See also: A complete guide to SMSF fees
Loan-to-value ratio
The loan-to-value ratio (LVR) limits of many SMSF loans are typically stricter than standard loans. Residential SMSF loan are typically 70% to 80% LVR, while commercial SMSF loans are typically 60% to 70% LVR.
This means SMSFs usually require a minimum of 20%-30% deposit.
How does an SMSF loan work?
SMSF loans are (by default) structured as a limited recourse borrowing arrangement or LRBA.
Under an LRBA, the asset is held in a separate trust (bare trust), the fund holds the beneficial interest, and legal ownership transfers to the SMSF once the loan is repaid.
If the SMSF defaults, the lender’s rights are limited to the asset in which the loan is secured against. They cannot access other assets within the fund.
Because of this added risk for lenders, SMSF loans usually come with higher interest rates and lower maximum LVRs than regular home loans.
See also: Buying a property through SMSF
SMSF loan interest rates
SMSF loan rates vary significantly depending on whether the loan is from a commercial lender or a related party.
Commercial SMSF loan rates
Commercial lender rates vary, but typically are higher than standard investment home loans, reflecting the additional risk (for lenders) and complexity of SMSF lending.
Actual rates generally depend on LVR and property type (whether residential or commercial).
Related-party loans
When an SMSF is borrowing from a related party, such as one of the members themselves, the ATO specifies what the interest rate on the SMSF loan must be under its safe harbour rules.
Recent rates for real property are as follows:
- 2025-26: 8.95%
- 2024-25: 9.35%
- 2023-24: 8.85%
- 2022-23: 5.35%
These rates ensure loans between related parties are conducted on arm’s length terms. The rates are what the ATO generally considers to be on par with what an unrelated party – such as a commercial lender – would charge on an SMSF loan.
SMSF minimum balance
There is no legal minimum balance required to set up an SMSF. However, given the relatively high costs of setting up and operating an SMSF, it’s generally recommended you have a considerably high balance for the SMSF to be worth it.
According to the ATO, the average SMSF balance was around $1.63 million in 2023-24.
Many financial advisers suggest having at least $200,000-$500,000 before establishing an SMSF, particularly if borrowing is involved.
SMSF loan pros
Borrowing through your SMSF offers several potential advantages, including:
-
Increased investment power
An SMSF loan allows access to higher-value assets, particularly property, using leverage, potentially increasing profits of the fund for the benefit of members.
-
Portfolio diversification
Borrowing can allow an SMSF to diversify into property, which may complement other investments like shares. Bear in mind that a fund’s asset choices must align with its investment strategy.
See also: Creating an SMSF investment strategy
-
Tax advantages
Rental income and capital gains within an SMSF may be taxed at concessional super rates, depending on the fund’s phase.
-
Repairs
Borrowed funds can be used to repair existing fixtures in a property owned by the SMSF. However, there are potential ATO-led penalties for making 'improvements' rather than 'repairs'. It's crucial to know the difference between these expenses.
SMSF loan cons
There is a lot to consider with SMSF loans, including some of these drawbacks:
-
Cash flow constraints
Borrowing money to purchase a property means your SMSF will have less liquidity and cash flow. You may have to use cash from the fund to cover loan repayments and meet other expenses, which could become harder if interest rates rise.
-
Higher costs
SMSF loans typically have higher fees and interest rates than regular home loans.
-
Difficult exit
Should you, for whatever reason, decide to exit an SMSF loan structure, it can be complex if the property needs to be sold and the market conditions are unfavourable. It’s difficult to roll back the loan and the lender may hold you to the contract.
Frequently Asked Questions
SMSFs are bound by the same contribution caps that apply to conventional super funds. Concessional (before tax) contributions are capped at $25,000 per year, while non-concessional (after-tax) contributions are generally capped at $100,000 per year. As the table below outlines, the non-concessional cap can be brought forward by up to $300,000, depending on your super balance:
| Total superannuation balance | Non-concessional contribution cap and bring forward period |
|---|---|
| Less than $1.4 million | Access to $300,000 cap (3 years) |
| Greater than or equal to $1.4 million and less than $1.5 million | Access to $200,000 cap (2 years) |
| Greater than or equal to $1.5 million and less than $1.6 million | Access to $100,000 cap (no bring-forward period, general non-concessional contributions cap applies) |
| Greater than or equal to $1.6 million | Nil |
Source: ATO
Unless you are a qualified professional who uses their qualifications for the services provided, you cannot reimburse yourself. For example, if you are an accountant by trade, and prepare the SMSF’s tax return for which you are a trustee, you can pay yourself for this.
An accountant can greatly assist in the creation of an SMSF. They can help in the application of your ABN to the ATO, and provide advice when creating the trust deed. They can’t solely set up the SMSF though, as trustees will need to decide on things like the structure, trust deed, investment and exit strategy.
There is no law which prevents you from having an SMSF and an industry fund. Managing your own super means you can make contributions into either, and when you create the SMSF, you’re not required to roll over all the funds from your original fund into the SMSF.
Yes, but only under the framework of a limited recourse borrowing arrangement (LRBA). Bear in mind that the borrowed funds may only purchase a single asset (one asset per loan) held in a separate holding trust, and that the asset passes the sole purpose test and aligns with the SMSF’s investment strategy.
An LRBA is a loan structure that allows SMSFs to borrow money to purchase an investment asset, typically property. The asset is held in a separate trust so the SMSF trustee has a beneficial interest and the right to acquire the legal title once the loan is repaid.
In practical terms, this ‘limits’ the ‘recourse’ of the lender, because if the SMSF defaults, the lender’s recourse is limited to the specific asset the loan is secured against; they have no access to the fund’s other assets.
While ATO regulations don’t specify deposit amounts, SMSF lenders typically require larger deposits than standard loans due to the limited recourse. Loan-to-value ratios (LVRs) usually range from 70%-80% for residential SMSF loans and 60%-70% for commercial SMSF loans. This means having a deposit of at least 20%-30% of the purchase price.
No. Australian superannuation laws require that SMSF investments comply with the sole purpose test, which means all action taken by the SMSF is for the sole purpose of providing retirement benefits to members. If a property is purchased through an SMSF, a trustee or anyone related to the trustee cannot live in it or use it for personal residential purposes.
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