Self Managed Super Funds - Find your Loan

We've been working in SMSF lending since it first existed.

Tim Sheehan was a business banker at NAB in 2007 when SMSF lending was first introduced in Australia. NAB was among the first major banks to embrace the product, and Tim worked with clients navigating this new and complex space from the very beginning. That foundation — understanding how SMSF lending works at a credit level, not just a product level — has carried through to TS Finance Broking ever since.

The landscape has changed significantly since then. Most major banks and mainstream lenders have pulled out of SMSF lending altogether, deterred by the regulatory complexity and the specialised nature of lending within a retirement structure. Today, SMSF loans are the domain of a smaller group of specialist lenders who understand the rules and have built products designed specifically for this purpose.

Knowing which lenders are active, what their policies require, and how to structure and present an SMSF application correctly is not something every broker can offer. It's an area we have actively focused on throughout our time in broking and it continues to be a space where we add real value for our clients.

What is SMSF property lending?

An SMSF — Self-Managed Super Fund — is a private superannuation fund managed by its members rather than a commercial super fund. It allows Australians to take direct control of their retirement savings and make their own investment decisions, including investing in property.

Under specific superannuation legislation, an SMSF can borrow to purchase property using what is known as a Limited Recourse Borrowing Arrangement, or LRBA. The 'limited recourse' structure means that in the event of a default, the lender's recourse is limited to the asset held — other assets within the fund are protected.

This structure introduces a layer of regulatory and legal complexity that requires careful coordination between the broker, the SMSF's accountant, the fund's legal adviser and the lender. Getting it right from the outset matters — errors in the setup of an SMSF loan can have significant consequences for the fund and its members.

Important Note: SMSF lending involves superannuation law, tax law and credit law simultaneously. We work closely with accountants and financial advisers throughout every SMSF transaction. We strongly recommend all clients have their accountant and, where appropriate, a financial adviser involved in the process before proceeding.

Who typically uses SMSF lending — and why

In our experience, the most common SMSF lending scenario we work with involves self-employed business owners looking to purchase commercial premises for their own business to operate from. This is particularly compelling for several reasons:

The business pays rent to the SMSF — creating a legitimate income stream flowing into the retirement fund
Rental income within the fund is taxed at concessional superannuation rates
Upon retirement, the property held within the fund may be sold in a tax-advantaged environment
The business secures a long-term, stable premises — without the uncertainty of commercial leasing
Superannuation balances that might otherwise sit in a managed fund are put to work in a tangible, income-producing asset

For self-employed clients who have been building their super balances for years, SMSF lending can unlock a pathway to property ownership that isn't available outside the fund. Particularly where purchasing a commercial property outright or financing it personally isn't feasible, the super fund balance can provide the equity contribution that makes the deal work.

The lender landscape — why specialist knowledge matters

The withdrawal of major banks from SMSF lending over the past decade has fundamentally changed how these transactions are financed. Where once several major lenders competed in this space, today a smaller group of specialist and non-bank lenders carry the market.

This matters for several reasons:

Fewer lenders means less competition — and less room for error in lender selection
Specialist lenders have specific policy requirements around fund structure, minimum balances, contribution history and property type
Interest rates in this space are higher than standard investment lending — reflecting the complexity and regulatory requirements and reduced competition in this space
Not all lenders will fund all property types — residential, commercial and industrial assets are assessed differently

Knowing which lenders are actively writing SMSF business, what their current policy requires and where each deal is most likely to succeed is a significant part of what we bring to these transactions.

Real SMSF deals we have structured.

Here are two recent examples that illustrate the type of SMSF lending scenarios we work through.

Case Study 1: Two business partners pool their super to secure a factory for their building business

Scenario	Challenge	Strategy	Outcome
Two 50/50 owners of a building business	Neither partner had sufficient super individually to fund the purchase	Combined both members' superannuation into a jointly established SMSF	Factory purchased through the SMSF
Business growing and needed a permanent, secure premises	Financing the property outside of super was not the preferred path	Structured the fund and bare trust correctly to meet lender and legislative requirements	Business now operates from a premises it owns through the fund
Looking to purchase an industrial factory	Required pooling of funds across two members into a single structure	Coordinated with the clients' accountant throughout the setup and application process	Rent paid by the business flows into the retirement fund
Both owners had individual superannuation balances	SMSF setup, legal structure and lender requirements all needed to align	Identified the right specialist lender for an industrial commercial asset	Both partners have a stable long-term base for their growing business

Case Study 2: Health business owner unlocks a purchase pathway through super

Scenario	Challenge	Strategy	Outcome
Health business owner exploring commercial property purchase	Standard commercial lending outside super was not accessible at the required level	Reviewed the combined superannuation position of both spouses	Purchase of the commercial premises funded through the SMSF
Wanted to buy the premises her business operated from	The purchase appeared out of reach under conventional financing	Identified that the combined balance was sufficient to fund the equity contribution	A pathway that didn't exist outside super became available within it
Purchasing the property outside of super was not financially viable	Required a structured review of all available pathways	Established an SMSF to hold the property and structured the LRBA correctly	Business secured its operating premises
She and her husband held combined super balances of over $250,000	SMSF option had not been previously explored or identified	Worked closely with the client's accountant to ensure compliance and correct setup	Superannuation balances put to work in a tangible, income-producing asset

MS

Martin Seehuusen

Superb service, knowledge and friendliness. We are very happy that family put us in contact with Tim and his crew. It's been a great outcome each and every time!

SW

Shannon Wilkins

Tim you and your team were very helpful though out the whole process answering our questions very quickly and giving us advice all the way through the whole process. Would recommend you to anyone.

BS

Brendan Sheehan

We had a terrific experience with Tim and Jayden for what is typically a stressful process. In particular, the clarity and consistency of their communication were exceptional. Their solution-oriented approach, depth of expertise, and ability to address and resolve issues in a timely and effective manner made for a seamless process.

What we help with across SMSF lending

Assessing whether SMSF lending is suitable for your situation — not every scenario is the right fit
Residential property investment through an SMSF
Commercial property — including business owners purchasing their own premises
Industrial and warehouse assets held within an SMSF
Coordinating with your accountant and legal adviser throughout the process
Identifying the right specialist lender for your fund structure and property type
Managing the application and settlement process end to end

Who we work alongside

SMSF lending cannot be done in isolation. Every transaction involves a team of professionals working together to ensure the fund is structured correctly, the legal requirements are met and the lending is appropriate for the fund's circumstances.

We work closely with:

Accountants — who establish and administer the SMSF, provide tax advice and ensure the fund's investment strategy is documented correctly
Financial advisers — where clients require advice on whether SMSF property is appropriate within the context of their broader retirement strategy
Solicitor/Conveyancer — who handle the conveyancing work required to ensure settlement goes through smoothly

If you don't have an accountant or adviser experienced in SMSF, we can connect you with professionals we work with regularly in this space.

Why clients choose TS Finance Broking for SMSF lending

Tim has been working in SMSF lending since it was first introduced in Australia in 2007 — the background is genuine
We understand the legislative framework, not just the loan product
We work closely with accountants and advisers throughout — this is a collaborative process, not a solo one
We know which specialist lenders are active in this space and what their current policies require
Many of our SMSF clients are self-employed — we understand the intersection of business ownership, super and property
We'll tell you honestly if SMSF lending isn't the right path for your situation — and explore alternatives

Thinking about purchasing property through your super fund?

SMSF lending works well for the right client in the right situation — but it requires the right structure, the right lender and the right team around you. The earlier you start the conversation, the better. Book an appointment and let's explore whether your super fund could be working harder for you.

Book an Appointment