An SMSF can't borrow the way you would personally. It uses a limited recourse borrowing arrangement. The fund borrows to buy one asset, such as a property, and that property is held in a separate trust (a bare or holding trust) until the loan is paid off. "Limited recourse" means that if things go wrong, the lender can claim only against that property, not against the rest of your fund's assets. Repayments come from the fund, usually paid from rental income and member contributions. Because of the extra legal structure, setup takes longer than a normal home loan, and lenders have their own rules about the fund's size and finances. It pays to line up your accountant and solicitor early.

No, and this is where SMSF investors most often get caught out. Residential property bought by your fund can't be lived in by you, your relatives or anyone related to a member, and it can't be rented to them either, even at market rent. It has to be held purely to provide retirement benefits, which is known as the sole purpose test. Commercial property is different. A fund can buy business premises and lease them to a member's own business at market rent. That's why SMSF home loans for residential property and SMSF lending for commercial property are really two separate conversations. Breaches can bring heavy penalties, so get your accountant or SMSF specialist to confirm the plan before you sign a contract.

It depends on the lender. Typically it's up to 80% of the property's value, and loan sizes can go as high as $3 million with some lenders. You'll need to fund the other 20% from inside the fund, plus stamp duty, legal and setup costs. Some lenders set a minimum amount of net assets (one we work with asks for $150,000). Some want cash left in the fund after settlement as a safety net, while others don't set a liquidity requirement at all. The real question is whether the fund can comfortably cover repayments from rent and contributions, including in a quiet year. We run those numbers with you and your accountant before an offer goes in.

Yes. Refinancing an SMSF loan is allowed as long as it's for the same property, and it's often worth reviewing when your fixed rate ends or the market has moved. There are limits. You can't borrow extra to renovate or improve the property in a way that changes what it is, and the new lender's paperwork has to line up with your existing trust structure, so there are legal and valuation costs to factor in. Because of that, mortgage refinancing for an SMSF is rarely as quick as a personal refinance, and easy refinance options with minimal documentation are less common. Some lenders now accept alt doc income verification. We compare the savings against the cost of switching before we recommend a move.

Possibly. SMSF lenders look at the fund's income and at the members' ability to keep contributing, and for self-employed members that can be hard to show with standard documents. Some lenders now accept alt doc income verification, which suits loans for self-employed members. A few will also count extra contributions, as long as you can show they come from a recurring income stream. Credit history matters, but some lenders will consider directors with credit impairments, usually on near prime terms with a higher rate. It's worth being upfront early, because a decline can complicate things later. We'll tell you which lenders are worth approaching.

For some people it works well. For others it adds cost and risk they didn't expect. Putting a large slice of your super into one property means your retirement leans on a single asset. SMSFs also carry ongoing costs like audits and accounting, and borrowing makes mistakes more expensive. A decision like this shouldn't rest on a broker's word alone. A licensed financial adviser and your accountant should confirm that an SMSF suits your goals. Our role is the lending side: finding the right lender, structuring the loan and working alongside your advisers. As an SMSF broker serving investors across Sydney and beyond, we're happy to join a call with your accountant or adviser.