SMSF Loans

When it comes to planning for retirement and building long-term wealth, Australians are increasingly turning to Self-Managed Super Funds (SMSFs) for greater control, flexibility, and transparency. One of the most powerful strategies available within an SMSF is the ability to invest in property using an SMSF loan.

At Kings’ Lending, we help you unlock the potential of your superannuation by guiding you through the process of securing an SMSF loan and investing in income-generating assets like residential or commercial property—without compromising compliance or peace of mind.

An SMSF loan, also known as a Limited Recourse Borrowing Arrangement (LRBA), allows your SMSF to borrow money to acquire a specific investment asset, such as property. This type of loan is structured to ensure that, in the event of a default, the lender's claim is limited only to the asset purchased with the borrowed funds—not the entire SMSF portfolio.

Here's how it works:

• Your SMSF borrows a portion of the purchase price for an investment property.
• Rental income from the property is used to make loan repayments.
• Any net earnings remain within the fund to grow your retirement savings.
• Once the loan is fully repaid, full legal ownership of the property transfers to the SMSF.

All SMSF loans must comply with the strict rules and guidelines set by the Australian Taxation Office (ATO), including the sole purpose test and arm’s length arrangements. That’s why it’s essential to work with experienced brokers who understand both the lending side and the compliance requirements.

While SMSF loans open doors to valuable investment opportunities, they come with a unique set of structures and limitations:

• Higher interest rates compared to standard home loans
• Limited lender options due to the complexity and risk profile
• Strict borrowing rules, including loan-to-value restrictions and liquidity requirements

However, with the right strategy, they offer compelling advantages:

• Tax-effective rental income that grows your super
• Asset diversification beyond shares and cash
• Long-term capital growth potential from property investments

At Kings’ Lending, we work closely with your financial advisor, accountant, or SMSF administrator to ensure the loan structure aligns with your fund's investment strategy and retirement objectives.

• Access to leading SMSF lenders and tailored loan structures
• Deep understanding of ATO compliance rules and SMSF regulations
• End-to-end support—from pre-approval to post-settlement
• Coordination with your legal and financial professionals
• Transparent, reliable guidance every step of the way