Home Loans for SMSF Trustees in North Brisbane, QLD, What Still Works
If you run a self-managed super fund and you've been looking at property, the rules changed in August 2026 and they changed in a way most people haven't caught up with yet. New limited recourse borrowing arrangements to buy residential property inside an SMSF are no longer permitted. That's not a proposal or a consultation paper - it passed Parliament in June and came into force on 10 August 2026.
That doesn't mean your SMSF can't hold property or that your existing loan is at risk. It means the pathways have narrowed, and knowing which ones remain open is where the conversation needs to start. Whether you're already holding a residential property inside your fund, looking at commercial premises for your business, or refinancing an existing SMSF loan, the options are different now and worth understanding clearly.
Our team works with SMSF trustees across North Brisbane, QLD on the lending arrangements that remain available, comparing across our panel of 60+ lenders. The SMSF lending side of things is specialist territory, and getting the structure right from the start matters more here than almost anywhere else in the lending space.
Key takeaways
- New SMSF residential borrowing has been banned in Australia since 10 August 2026.
- Existing residential LRBAs are fully grandfathered, including refinancing to a new lender.
- Business real property LRBAs and SMSF cash purchases of residential property still proceed.
Can SMSF trustees still borrow to buy property in North Brisbane?
SMSF trustees can still borrow to buy business real property, and can still refinance an existing residential limited recourse borrowing arrangement. What they can no longer do is enter a new LRBA to acquire residential property. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 closed that pathway from 10 August 2026, with full grandfathering for any arrangement entered before that date.
How does SMSF property lending actually work?
A limited recourse borrowing arrangement is the only legal structure for an SMSF to borrow money to buy an asset. The fund doesn't hold the property directly during the loan - it sits inside a bare trust, and the lender's recourse is limited to that asset if the fund defaults. Once the loan is repaid, the legal title transfers to the fund.
The "limited recourse" element is what makes LRBA lending fundamentally different from personal property finance. The lender cannot pursue the fund's other assets or the trustees personally if the property falls in value and the loan can't be fully recovered. That protection for the fund comes at a cost: smaller panels, higher rates, and tighter maximum LVRs than you'd see on a residential investment loan in your own name.
Most trustees we speak to after the August changes are in better shape than they think. Their existing loan is grandfathered, their fund can still buy commercial property, and in some cases refinancing to a sharper rate is genuinely worth doing. The trap is assuming everything is off the table when the ban is actually narrower than that.
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What SMSF property arrangements are still available?
The ban is specific: new LRBAs to acquire residential property are prohibited. Four arrangements remain fully open.
What still works:
- › Refinancing an existing residential LRBA: if your fund already holds a residential property under an LRBA entered before 10 August 2026, you can refinance that loan to a different lender. The grandfathering is complete - no forced sale, no LVR reset, no compliance obligation arising from the change.
- › Business real property LRBAs: your SMSF can still borrow to buy commercial property - an office, a warehouse, a retail tenancy - under a new LRBA. This includes buying the premises your own business operates from, which is one of the most compelling SMSF strategies for business owners and is entirely unaffected by the 2026 legislation.
- › Residential property purchased with cash inside the fund: the ban applies to borrowing, not to ownership. If your fund has the balance to purchase residential property outright, it can still do so. The sole purpose test applies as always - no member or related party can live in it.
- › Transitional protection on contracts signed before 10 August 2026: a binding purchase contract entered before the commencement date is protected even if settlement falls after it. The property date that matters is the contract date, not settlement.
What do SMSF trustees need to qualify for a property loan in North Brisbane?
SMSF lending is assessed differently from personal lending, and the lender panel is narrower - the major banks largely exited SMSF lending in 2018 and 2019, so this is mostly specialist and second-tier lenders. That makes the panel your broker has access to more important here than on almost any other loan type.
What lenders typically require:
- › Minimum fund balance: most specialist lenders want to see between $200,000 and $300,000 in fund assets before they'll consider an SMSF loan application.
- › Post-settlement liquidity: after the loan settles, the fund typically needs to retain around 10% of the loan amount, or between 5% and 10% of the asset value, as a liquid buffer. Lenders want to see the fund can service the debt without selling the asset.
- › LVR ceiling: residential LRBAs (grandfathered and refinancing) typically allow 65% to 80% LVR depending on the lender. Commercial LRBAs usually sit lower, at 60% to 70%.
- › Rental income assessment: lenders typically accept 70% to 80% of gross rental income when calculating the fund's ability to service the debt.
- › Trust deed and bare trust structure: the LRBA must be set up correctly under the SIS Act 1993, with a compliant bare trust, before the lender will proceed. This is a documentation requirement, not a financial one, but it needs to be in place before application.
Whether these thresholds are available to your fund specifically depends on which lenders your broker has access to and on the fund's own profile. It's worth a conversation before you commit to a structure.
Source: APRA and specialist SMSF lender published policy (mid-2026).
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What does the negative gearing and CGT change mean for SMSF trustees?
The same legislation that introduced the residential LRBA ban also changed the rules on negative gearing and capital gains tax, and those changes interact with SMSF property in ways that are easy to misread.
On negative gearing: the restriction on offsetting net rental losses against other income applies to established residential property purchased after Budget night, 12 May 2026, and commences 1 July 2027. Superannuation funds are explicitly excluded from this restriction - the negative gearing rules for SMSFs are unaffected. An SMSF holding residential property under a grandfathered LRBA can still offset losses against fund income as before.
On CGT: the 50% CGT discount for individuals is being replaced by cost base indexation plus a 30% minimum tax on the real gain, from 1 July 2027. SMSFs have their own separate CGT treatment and are not subject to this individual-rate change. The fund's existing 10% discount rate for assets held more than 12 months is a superannuation-law provision, not the individual discount being reformed. Your accountant and SMSF adviser are the right people to work through how this affects your fund's specific position - this is tax advice territory, not lending.
Source: Treasury Laws Amendment (Tax Reform No. 1) Act 2026; Australian Taxation Office.
When does SMSF property borrowing not make sense?
Even where an SMSF loan is available, it isn't always the right structure. Commercial property LRBAs suit funds with the balance and the liquidity to sustain them - a fund with $250,000 in assets and a $600,000 commercial purchase means almost all of the fund's value is in a single illiquid asset, with a debt on top of it. Concentration risk inside super is real and it's different from the same risk in a personal investment portfolio, because super has its own rules about when you can access it.
The rate loading on SMSF loans is typically around 1% to 2% higher than a comparable investment loan in your own name. Over a 20-year term that's a meaningful cost, and for some trustees buying in their personal name and contributing the rental income to super separately is a simpler and cheaper arrangement. That calculation is worth doing before you commit to the LRBA structure, and it's a conversation that belongs with your accountant alongside your broker.
Where I'd push back on the LRBA structure is when the fund is essentially being built around one property. A well-diversified fund that holds a commercial property alongside other assets is usually a more resilient position than one where the loan repayments depend on a single tenant not leaving. That's a risk question as much as a lending one, and it's worth sitting down with your SMSF adviser before the loan application goes in.
Tom Kelly · Director - Home & Car Loans, Kelly Brothers Finance · Chat to Tom →
How to set up or refinance an SMSF property loan in North Brisbane, QLD, step by step
Step 1: Talk to us
We start by working out which SMSF lending pathway is actually available to your fund - refinancing an existing residential LRBA, a new commercial LRBA, or a cash purchase - and which lenders on our specialist panel are worth approaching for it.
Step 2: Confirm the fund's position and structure
We review the fund balance, the post-settlement liquidity position, and the bare trust structure with your SMSF adviser before any application goes in. A lender won't proceed without the documentation being right, and fixing it after you've applied costs time.
Step 3: Match to a specialist lender and apply
We prepare the application and submit it to the lender whose policy best fits the fund's profile. SMSF files are manually assessed by a credit officer, so the quality of the submission matters more than it does on a standard residential file.
Step 4: Manage through to settlement
We stay across the file from approval through to settlement, coordinating with your solicitor and SMSF administrator so the bare trust and the title transfer happen in the right order.
What approval challenges do SMSF trustees face?
The common hurdles:
- › Narrow lender panel: the major banks exited SMSF lending in 2018 and 2019. Applications go to specialist and second-tier lenders whose policies differ significantly - which lenders your broker can access determines what's available to you, in a more direct way than on a standard residential loan.
- › Fund balance below the floor: a fund with less than $200,000 in assets will find the specialist lender panel closes further. If the fund is still building, it's worth knowing the threshold before you start the process rather than after you've found the property.
- › Bare trust not in place: the LRBA structure requires a bare trust to hold legal title during the loan term. Applications that arrive without a compliant bare trust established are delayed while documentation is fixed - which can cost a contract if there's a settlement deadline in play.
- › Sole purpose test and related party exposure: no member of the fund or related party can use, occupy or benefit from the property. A commercial property rented to the trustee's own business is permitted under the business real property rules; a residential property rented to a family member is not. Getting this wrong is a compliance issue, not a lending one, but lenders ask about it and a wrong answer ends the application.
Frequently Asked Questions
Is the SMSF residential borrowing ban permanent?
Yes, as legislated. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 contains no sunset clause or review date for the residential LRBA ban. New residential borrowing inside an SMSF is prohibited from 10 August 2026 until Parliament changes the law.
Can I refinance my existing SMSF residential loan to a better rate?
Yes. Existing residential LRBAs entered before 10 August 2026 are fully grandfathered, which includes refinancing to a different lender. The ban applies to new acquisitions, not to managing an existing compliant arrangement.
Can my SMSF still buy commercial property with a loan?
Yes. Business real property LRBAs are unaffected by the 2026 legislation. Your fund can enter a new LRBA to purchase commercial property, including premises your own business occupies, provided the arrangement meets the standard SMSF lending and SIS Act requirements.
What LVR can an SMSF borrow to on a commercial property?
Most specialist lenders allow 60% to 70% LVR on commercial LRBAs, which means a deposit of 30% to 40% plus costs. LVRs vary between lenders and depend on the property type, lease profile and fund balance. Whether this is available to your fund depends on which lenders your broker has access to.
Does my SMSF need a minimum balance to get a property loan?
Most specialist lenders require between $200,000 and $300,000 in fund assets before they'll consider an application. The fund also needs to retain a liquidity buffer after settlement. A fund below those thresholds will find the lender panel narrow considerably.
Should SMSF trustees use a mortgage broker or go direct to a lender?
A mortgage broker, every time. The major banks don't offer SMSF loans, so going direct means approaching one specialist lender with no comparison. A broker with access to multiple specialist lenders can match your fund's profile to the lender whose policy fits, without leaving a trail of declined applications on the fund's credit file.
Your Next Steps
The SMSF lending landscape has changed significantly in 2026, and understanding which pathways remain open for your fund is the starting point for any property decision inside super. Whether you're looking to refinance an existing residential loan, buy commercial premises for your business, or simply want to know where your fund stands, the answer depends on your fund's specific profile and which specialist lenders are on the table.
If SMSF property lending is on your horizon, the next step is simple. Get in touch with the Kelly Brothers Finance team or call 07 3847 9450. We'll work through where you stand across our 60+ lender panel.
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External Resources
Kelly Brothers Finance · North Brisbane, QLD · Kelly Brothers Brokerage Pty Ltd (ACN 662 331 320), authorised under Australian Credit Licence 517192 · General information only - this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions.
