An SMSF loan formally known as a Limited Recourse Borrowing Arrangement or LRBA  allows your self-managed super fund to borrow money to purchase a single investment asset, typically a residential or commercial property. The property is held in a separate bare trust until the loan is fully repaid, at which point legal ownership transfers to the SMSF. The “limited recourse” element is critical: if the fund defaults, the lender’s recourse is limited to the asset itself your other super fund assets remain protected.

No. There are strict rules governing what an SMSF can purchase. Residential properties must satisfy the Sole Purpose Test they must be held purely to generate retirement benefits for fund members. They cannot be lived in by members or their relatives, and they must be acquired at arm’s length from unrelated parties. Commercial properties have more flexibility: a related party, including your own business, can lease the premises from the fund at market rent which is one of the most effective uses of this structure for Brisbane business owners.

A bare trust, also known as a holding trust or custodian trust, holds legal title to the property on behalf of the SMSF during the loan term. It is a legal requirement not an administrative option. Once the loan is repaid in full, the property transfers into the SMSF’s name. The bare trust must be established correctly before settlement occurs. We work with your legal advisers to ensure this is done properly before any application is lodged.

Yes. Many older SMSF trust deeds do not include provisions for Limited Recourse Borrowing Arrangements. Before we approach any lender, we confirm your trust deed permits borrowing. If it does not, your SMSF accountant or specialist will need to amend it first. This is a common starting point for new SMSF borrowers and does not prevent the fund from proceeding it simply needs to be addressed early in the process.

Before approaching lenders, we confirm the following are in place: the fund has a compliant trust deed that permits LRBAs, the investment strategy includes property as an allowable asset class, the fund has sufficient liquidity after the purchase, and the bare trust structure can be established before settlement. If any of these need attention, we identify them in the initial review so nothing delays the application once submitted.

SMSF applications are more document-intensive than standard home loan applications and typically take longer to process. Most applications move through in four to eight weeks depending on lender volumes, document completeness, and the complexity of the fund structure. We pre-package every SMSF application to assessor-ready standard before submission reducing the back-and-forth that causes the majority of delays.

No. Our initial consultation is complimentary. We review your fund’s current position, assess whether the structure is ready to borrow, and explain what the process involves. If you decide to proceed, we provide a full credit quote outlining how we are paid in most cases there are no out-of-pocket costs to you, as we are remunerated by the lender upon settlement.

Yes — and we actively encourage it. SMSF lending sits at the intersection of mortgage broking, superannuation compliance, and tax strategy. Your accountant manages the fund’s compliance and financial position. Your financial planner oversees the investment strategy. Our role is the lending — and we coordinate directly with your professional team to make sure all three components are aligned before and during the application. We do not operate in isolation.