SMSF Lending · Residential Property · Australia

SMSF residential property loans after the 2026 changes

From 10 August 2026, a self-managed super fund can no longer use a new limited recourse borrowing arrangement (LRBA) to buy residential property. If your SMSF already has a residential property loan, it continues, and it can still be refinanced.

Talk to us about refinancing → Call 1800 705 505

Existing loans continue · Refinancing still permitted · Business real property still eligible

Australian suburban residential investment property held by a self-managed super fund

10 Aug 2026The change commenced

10 August 2026New residential LRBAs end

Existing loansContinue

RefinancingStill permitted

Business real propertyStill eligible

Can an SMSF still borrow to buy residential property?

Not under a new LRBA from 10 August 2026.

SMSFs can generally no longer enter into new LRBAs to acquire residential property. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 received Royal Assent on 26 June 2026. From 10 August 2026, a new LRBA can only be used to acquire real property that is business real property, as defined in section 66 of the Superannuation Industry (Supervision) Act 1993. Arrangements entered into before then are not affected.

Buying your business premises or other business real property? See our SMSF commercial property loans.

Australian couple reviewing the residential property their self-managed super fund holds

If your SMSF already has a residential property loan

Your existing loan continues

The change applies to arrangements entered into on or after 10 August 2026. A residential LRBA entered into before then is not affected, and refinancing it is still permitted under the new rules, subject to each lender's policy.

✓Existing residential LRBAs continue under the existing rules, and you don't have to unwind them
✓Refinancing an existing residential LRBA is still permitted, subject to lender policy
✓A purchase under a contract entered into before 10 August 2026 can proceed, even if it settles later
✓Your SMSF can still buy residential property without borrowing, if it complies with super rules and its investment strategy

Rules that still apply

If your SMSF holds residential property

Residential SMSF property comes with strict conditions, whether or not it was bought with a loan. Getting these wrong can put your fund's compliance at risk.

You can't live in it

No fund member or related party may live in the property. It must be a genuine investment.

You can't rent to family

It can only be leased to an unrelated, arm's-length tenant at genuine market rent.

You can't buy it from yourself

Unlike commercial property, an SMSF generally can't acquire residential property from a member or related party.

It must meet the sole-purpose test

The property must be held solely to provide retirement benefits to fund members.

The essentials

SMSF residential lending at a glance

What's still available for residential property in an SMSF. We'll confirm the finer detail with you directly based on your fund, your existing loan and the property.

Loan purposeRefinance an existing LRBA

Lenders and termsSpecialist SMSF lenders; terms set per fund

Eligible loansResidential LRBAs entered into before 10 Aug 2026

Maximum LVRSet by the lender for your fund

How refinancing works with us

From review to refinance

Review your loan

We look at your current SMSF loan, the property, its rent and the fund's position.

Check lender policy

Lending requirements and appetite for SMSF refinancing may differ between lenders, so we confirm what is available for your fund.

Refinance the existing borrowing

The new loan refinances the borrowing under your existing arrangement, which is what keeps it outside the new rules.

Stay compliant

The property must still meet the sole-purpose test and be leased at arm's length to an unrelated tenant.

Why Greenline for SMSF lending

A mortgage manager that approves the deals others decline

Specialist SMSF expertise

We structure SMSF property loans day in, day out, including refinancing existing residential loans.

Business real property too

Buying business premises through your fund? See our SMSF commercial property loans.

Clear on the 2026 change

We'll check how the change affects your loan, and point you to your adviser for legal or tax questions.

Mortgage-manager flexibility

As mortgage managers we can structure the loan to fit your fund, not the other way around.

SMSF residential questions after the change

Frequently asked questions

Can my SMSF still borrow to buy residential property?+

Not under a new LRBA. From 10 August 2026, SMSFs can generally no longer enter into new LRBAs to acquire residential property: a new LRBA can only be used to acquire real property that is business real property.

What happens to my existing SMSF residential loan?+

It continues. The change applies to arrangements entered into on or after 10 August 2026, so a residential LRBA entered into before then is not affected, and you don't have to unwind it.

Can I refinance my existing SMSF residential loan?+

Yes. Refinancing an existing residential property LRBA is still permitted under the new rules, subject to each lender's policy. Lending requirements and appetite may differ between lenders.

I signed a contract before 10 August 2026. Is my purchase affected?+

Where the contract of sale was entered into before 10 August 2026, the purchase can proceed even if it settles after that date. Setting up an SMSF, applying for finance or receiving approval in principle before then doesn't necessarily mean a purchase is covered, so check your situation with your adviser.

Can my SMSF buy residential property without borrowing?+

Yes. The change is about new LRBAs, not SMSF ownership of residential property. An SMSF may still buy residential property without borrowing if it complies with super rules and its investment strategy.

What is business real property?+

Property that meets the definition of business real property in section 66 of the Superannuation Industry (Supervision) Act 1993. A property being commercially zoned doesn't automatically make it eligible, and mixed-use properties need careful consideration. See our SMSF commercial property loans.

Can I live in a property my SMSF owns?+

No. Under the sole-purpose test, a residential property owned by your SMSF cannot be lived in by you, any other fund member, or any related party. It must be a genuine arm's-length investment held to provide retirement benefits.

Already have an SMSF residential loan?

Let's review your SMSF loan.

Speak to a Greenline broker about refinancing an existing SMSF residential property loan, or about buying business real property through your fund.

Call 1800 705 505 Get in touch

SMSF borrowing is complex and this page is general information only — it is not financial, tax, credit or SMSF advice and does not consider your objectives or circumstances. Consider the appropriateness of any strategy and seek advice from a licensed financial adviser, accountant or SMSF specialist before acting. Lending criteria and LVRs are a guide and subject to lender policy and approval.

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