Your SMSF Lending Roadmap
From strategy to settlement — here’s how it works.
Step 1: Confirm your SMSF strategy
- Ensure your SMSF trust deed allows borrowing
- Work with your financial adviser/accountant to define your investment goals
- Confirm your fund has sufficient balance and cash flow for a property purchase
Tip: Most lenders prefer your SMSF has at least $200k+ in assets before borrowing.
Step 2: Set up the structure
- Establish a Bare Trust (also known as a Holding Trust)
- Appoint a corporate trustee if required
- Open a separate bank account for your SMSF
This step must be completed before signing a contract.
Step 3: Get SMSF loan pre-approval
- Work with us to find a lender experienced in SMSF loans
- We ensure your loan structure complies with SIS Act rules
- You receive a conditional approval based on the SMSF’s financials
Note: Lenders assess the SMSF’s income, not your personal income.
Step 4: Select and purchase the property
- Choose an eligible residential or commercial investment property
- Sign the contract in the Bare Trustee’s name
- Finalise the loan and complete legal due diligence
Step 5: Settle and manage
- On settlement, the Bare Trust holds the property on behalf of the SMSF
- Loan repayments are made from the SMSF bank account
- Rental income and expenses flow through the SMSF