| 

SMSF Home Loans: For Existing Clients & Refinancing

If your SMSF already holds a residential property through a Limited Recourse Borrowing Arrangement (LRBA), this page is for you. From 10 August 2026, section 67A of the Superannuation Industry (Supervision) Act 1993 no longer permits new SMSF LRBAs for residential property. If you’re looking to buy a new property through your SMSF, borrowing is now limited to business real property, see our SMSF Commercial Property Loans page. This page covers what the change means for existing clients.

What Changed, and What It Means for You

  • Existing residential SMSF LRBAs are fully grandfathered. If your loan has already settled, or contracts were exchanged before 10 August 2026, nothing changes, no action is required.
  • Refinancing an existing residential SMSF loan is still available, and remains one of the most common reasons existing clients contact us.
  • New residential property purchases inside an SMSF using borrowing are no longer available from 10 August 2026 onward.
  • Your SMSF can still purchase residential property outright with cash, without borrowing.
  • New SMSF borrowing is now focused on business real property, see our Commercial Property page for details.

Refinancing Your Existing SMSF Loan

If your SMSF residential LRBA is coming off a fixed rate, or you simply want to review your structure, refinancing is still fully available and doesn’t affect your grandfathered status. Call Jay on 0425 228 882 for a confidential, obligation-free review of your existing loan.

Staying Compliant With Your Existing SMSF Property Loan

Your existing residential SMSF property loan continues to carry the same ongoing compliance obligations as before. Your fund must be able to service the loan from rental income and member contributions, this is one of the most common areas we help existing clients review. Maintenance and repairs are permitted; capital improvements that change the fundamental character of the asset are not. Your SMSF must be audited annually, and a property loan adds complexity and cost to that audit. If you have questions about any of these obligations for your existing loan, call us for a review.

Common Questions

What happens to my existing SMSF property loan?

Nothing changes. Existing residential SMSF LRBAs are fully grandfathered under the 10 August 2026 changes. You can continue making repayments and managing your fund exactly as before.

Can I still refinance my SMSF home loan?

Yes. Refinancing an existing residential SMSF loan remains available and doesn’t affect its grandfathered status. Call us to review your current structure and rate.

Can my SMSF still buy residential property?

Yes, but only with cash. From 10 August 2026, an SMSF can no longer borrow, through a new LRBA, to buy residential property. If your fund has enough capital, it can still purchase residential property outright, without borrowing. This is general information only; talk to a licensed financial adviser about whether this suits your fund.

I want to buy a new property through my SMSF: what are my options?

New SMSF borrowing is now limited to business real property. Visit our SMSF Commercial Property Loans page for details, or call Jay on 0425 228 882 to discuss your situation.

Call Jay, 0425 228 882
YML Finance | ACL 398415 | MFAA Member 20+ Years | SMSF Specialist

General information only. Not financial product advice, tax advice or legal advice. SMSF decisions require a licensed financial adviser, registered tax agent and legal practitioner. YML Finance Pty Ltd ACL 398415. YML Legal Pty Ltd provides legal services separately from YML Finance. Interest rates quoted are indicative only and subject to change. We act in accordance with the Best Interests Duty. Remuneration: commission from lender at settlement, see our Fees & Remuneration page. Complaints: Lodge a complaint or contact AFCA on 1800 931 678.