SMSF Loans | Double Bay Mortgage Broker - Your Double Bay Mortgage Broker

Using Your Super to Buy Investment Property

A Self-Managed Super Fund loan allows your SMSF to borrow money to purchase property, giving your fund the ability to hold real estate as part of a broader retirement strategy. At Double Bay Mortgage Broker, we work with trustees who want to understand their options and connect with lenders who offer SMSF loan products suited to their fund's circumstances.

How SMSF Borrowing Works

Borrowing inside an SMSF is done through a Limited Recourse Borrowing Arrangement, commonly called an LRBA. Under this structure, the property is held in a separate holding trust, sometimes called an SMSF bare trust, while the fund holds the beneficial interest. The SMSF acquires full legal ownership once the loan is repaid. If the loan defaults, the lender's recourse is limited to the asset held in the trust, meaning other fund assets are protected. This is one of the defining features of an SMSF property loan.

Important Legislative Changes from August 2026

The rules around SMSF borrowing changed significantly in 2026. From approximately 10 August 2026, new LRBAs can only be used to acquire business real property. This means new SMSF residential loans using an LRBA are no longer available for arrangements entered into after that date. An SMSF may still hold existing residential property and may acquire residential property without borrowing, subject to the usual rules. If you entered into an arrangement before the commencement date, transitional protections may apply, but whether a transaction qualifies depends on the specific documentation and circumstances involved. You should obtain specialist legal advice before assuming any grandfathering applies to your situation.

SMSF Commercial Loans Remain Available

SMSF commercial loans are not affected by the 2026 restriction. Business real property, meaning land and buildings used wholly and exclusively in one or more businesses, continues to be an eligible asset for a new LRBA. This makes commercial property one of the primary options for trustees looking to use super to buy investment property through borrowing. Whether a property qualifies as business real property depends on its actual use at the time of acquisition and is a question of fact. A property marketed as commercial does not automatically meet the definition.

Tax Considerations Inside an SMSF

A complying SMSF pays tax at a concessional rate of 15 percent on assessable income, including net capital gains. Where a property has been held for at least 12 months, a one-third CGT discount may apply, which can reduce the effective rate on the gain. In pension phase, assets that support a retirement-phase income stream may qualify for an exemption on investment income, including capital gains, through what is known as exempt current pension income. However, this exemption is not automatic and depends on how the fund calculates its exempt proportion, whether an actuarial certificate is required, and whether minimum pension payment requirements have been met.

From 1 July 2026, members with a total superannuation balance above $3 million are subject to Division 296 tax, which applies an additional 15 percent to earnings attributable to the amount above that threshold. SMSF rental income and realised capital gains may contribute to the Division 296 calculation. Unrealised increases in property value do not by themselves produce assessable income under this measure. LRBA amounts are disregarded when calculating a member's balance for Division 296 purposes. An election was available to reset the cost base of CGT assets to market value as at 30 June 2026, which may be relevant for funds holding property acquired before that date.

Double Bay Mortgage Broker does not provide tax or legal advice. These matters should be discussed with a licensed SMSF specialist and a registered tax adviser.

The Simple Steps

Initial Consultation

Your journey begins with a conversation about your property goals - whether you're purchasing a home, investing, refinancing, or seeking another type of loan. Our Finance & Mortgage Brokers explain the overall loan application process, assess your financial position, and begin identifying suitable loan options from a wide panel of banks and lenders across Australia.

Financial Assessment

Your broker conducts a detailed review of your finances, including income, expenses, assets, liabilities and savings. They determine your borrowing capacity and explain key terms like loan-to-value ratio (LVR), lenders mortgage insurance (LMI), and any government schemes or discounts you may be eligible for.

Loan Comparison & Selection

With a clear understanding of your financial situation, our Finance & Mortgage Brokers research and compare a range of loan options. These may include fixed or variable interest rate loans, products with offset accounts, or flexible repayment features. Our brokers help you weigh the pros and cons of each loan, ensuring you choose the one that aligns best with your needs and preferences.

Loan Pre-Approval

Securing loan pre-approval provides a clear idea of how much you can borrow and strengthens your position in the property market. Your broker prepares and submits the required documents - such as payslips, tax returns, and bank statements - to the lender for assessment. Pre-approval also gives you confidence to make offers when you find the right property.

Formal Loan Application

Once you've chosen your preferred loan, your broker completes and submits the formal application to the lender. They manage all required documentation, respond to any queries from the lender, and keep you informed throughout the process to avoid unnecessary delays.

Loan Approval & Settlement Preparation

After your loan is formally approved, our brokers review the loan agreement with you and confirm that all terms - such as interest rate, fees, and repayment schedule - are clear and understood. They also help you set up your loan account and arrange any necessary insurance, such as mortgage or home loan protection.

Settlement & Ongoing Support

At settlement, the lender advances the funds and ownership of the property is transferred to you. Our brokers coordinate with your solicitor or conveyancer to ensure everything runs smoothly. After settlement, our Finance & Mortgage Brokers remain available for ongoing support - whether it's managing repayments, exploring refinancing opportunities, or helping with future property plans.

SMSF mortgage broker comparing SMSF lenders and loan interest rates for a trustee client

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What to Know About SMSF Loan Rates and Requirements

SMSF loans are assessed differently to standard home loans, and the lending criteria can vary significantly between lenders. At Double Bay Mortgage Broker, we help trustees compare SMSF lenders and understand what each requires before submitting an application.

SMSF Loan Interest Rates and Rate Types

Lenders offering SMSF loan products typically provide both SMSF variable rate and SMSF fixed rate options. Variable rates move in line with lender decisions and market conditions, while fixed rates lock in a set repayment for a defined period. The SMSF loan interest rate offered will depend on the lender, the loan-to-value ratio, the type of property, and the fund's overall financial position. Because SMSF loans carry additional complexity and risk for lenders, rates are generally higher than those available on standard investment loans.

Refinancing an Existing SMSF Loan

For trustees with an existing residential LRBA entered into before the August 2026 commencement date, refinancing may still be available. The legislation provides that the restriction on new residential LRBAs does not apply to maintaining or refinancing a borrowing under an arrangement entered into before commencement. However, the ATO had not published updated guidance on all aspects of this as at July 2026. A significant change to the terms of an existing LRBA may end the arrangement and trigger the post-commencement rules. Trustees considering home loan refinancing of an SMSF arrangement should seek specialist legal advice before proceeding.

Double Bay Mortgage Broker works with a range of lenders to help trustees understand their SMSF loan application options and identify products that suit the fund's structure and objectives. We recommend all trustees work closely with a licensed SMSF specialist adviser throughout this process, as the rules are complex and the consequences of getting it wrong can be significant.

Hear From Our Clients

Our Client Reviews

Nick and the team at Azura Financial exceeded our expectations at every step. Their guidance was clear, their expertise was evident, and they handled every financial detail with care — giving us complete peace of mind throughout the process. We couldn't have asked for a better team by our side. Thank you very much, V&V.

Van Tran

As a founder, getting a mortgage requires a couple more hoops to jump through, which is why I couldn't recommend Nick O'Sullivan and the Azura team more highly. Not only were they able to offer a seamless process, but Nick was also patient with us as we changed our minds about when to buy (over a period of years!). The truth is anyone can approach a bank and get a mortgage, but when things don't go perfectly (e.g. abrupt government changes), that's when you want a pro on your team like Nick.

Shaun Cunningham

As a first home buyer, Carl and the team at Azura were incredibly helpful throughout the whole process. They made everything feel straightforward and were always there to answer any questions along the way. I’ve already recommended them to friends and would highly recommend them to anyone looking to get a mortgage!

sarah ander

Your Questions Answered

Frequently Asked Questions

Why choose Double Bay Mortgage Broker over a broker based elsewhere?

Choosing a local broker means working with someone who genuinely understands the Double Bay area, the types of properties here, and the people who live and invest in this community. We are not a call centre or a faceless online service. We are a local business that takes pride in building real relationships with our clients. When you work with Double Bay Mortgage Broker, you get personalised service from someone who is invested in your outcome. We are accessible, we communicate clearly, and we are here for the long term. Many of our clients come back to us when their circumstances change, and that kind of ongoing relationship is something we value deeply.

Can Double Bay Mortgage Broker help if I am self-employed?

Yes, we work with self-employed clients regularly. Getting a home loan when you are self-employed can be more involved than a standard application because lenders assess income differently for business owners. Some lenders require two years of tax returns, while others offer what are known as low-doc loans, which require less documentation but may come with different conditions. At Double Bay Mortgage Broker, we understand how to present a self-employed application in a way that gives it the strongest possible chance of being assessed fairly. We will take the time to understand how your income works and match you with lenders who are well suited to your type of borrowing situation.

What documents will I need to provide?

The documents required will depend on your individual circumstances, but as a general guide, most lenders will want to see proof of identity, recent payslips or tax returns, bank statements, details of any existing debts or liabilities, and information about the property you are looking to purchase or refinance. If you are self-employed, you may need to provide additional documentation such as business financial statements or BAS statements. At Double Bay Mortgage Broker, we will give you a clear checklist of what is needed for your specific situation so you are not scrambling to pull things together at the last minute. Being organised early can help keep the process on track.

How long does the home loan process take?

The timeline can vary depending on a number of factors, including the lender you go with, the complexity of your application, and how quickly documents are provided. In general, once we have everything we need from you, a straightforward application can take anywhere from a few days to a few weeks to receive formal approval. At Double Bay Mortgage Broker, we work to keep things moving as efficiently as possible and keep you updated along the way. We know that waiting for news on something as important as a home loan can be stressful, so we make it a priority to stay in regular contact and answer your questions promptly.

What is refinancing and how do I know if it is worth looking into?

Refinancing means replacing your existing home loan with a new one, either with your current lender or a different one. People refinance for a number of reasons, including accessing equity in their property, consolidating debts, changing their loan structure, or simply reviewing whether their current loan still suits their needs. At Double Bay Mortgage Broker, we can review your existing loan and compare it against what else is available in the market. We will give you an honest assessment of whether refinancing makes sense for your situation. There are costs involved in refinancing, such as exit fees or application fees, and we will make sure you understand these before making any decisions.

I am a first home buyer. Can Double Bay Mortgage Broker help me?

Absolutely. Buying your first home is one of the biggest financial decisions you will ever make, and it can feel overwhelming when you are not sure where to start. At Double Bay Mortgage Broker, we work with first home buyers regularly and understand the questions and concerns that come with it. We will walk you through the process from start to finish, explain the different loan options available to you, and help you understand what government grants or schemes you may be eligible to apply for, such as the First Home Owner Grant. We want you to feel informed and confident at every stage, not left in the dark.

What types of loans can Double Bay Mortgage Broker help with?

We help clients with a wide range of lending needs. This includes home loans for owner-occupiers, investment property loans, refinancing existing loans, construction loans, and loans for self-employed borrowers. We also assist with commercial finance and asset finance depending on your situation. Whether you are buying your first home in Double Bay, looking to grow a property portfolio, or wanting to review your current loan to see if there is a more suitable option out there, we are here to help. Every client has a different set of circumstances, and we take the time to understand yours before recommending any course of action.

How much does it cost to use Double Bay Mortgage Broker?

In most cases, our service comes at no direct cost to you. Mortgage brokers in Australia are typically paid a commission by the lender once a loan settles. This means you can access our knowledge and support without paying out of pocket. We are upfront about how we are paid and will always explain this to you clearly before we get started. There are some situations where a fee may apply, and if that is the case, we will let you know well in advance so there are no surprises. Transparency is something we take seriously at Double Bay Mortgage Broker.

Why should I use a mortgage broker instead of going directly to my bank?

When you go directly to your bank, you only see what that one lender has to offer. A mortgage broker like Double Bay Mortgage Broker has access to a broad panel of lenders, which means we can present you with a wider range of options. Your bank is focused on selling its own products, whereas we are focused on finding the right fit for your circumstances. We also know how different lenders assess applications, which means we can help you put your best foot forward. For residents in Double Bay, having someone local who understands the property market in this area can make a real difference.

What does a mortgage broker actually do?

A mortgage broker acts as the go-between for you and a range of lenders. Rather than you having to approach each bank or lender on your own, a mortgage broker does the legwork for you. At Double Bay Mortgage Broker, we look at your financial situation, understand what you are trying to achieve, and then search through a wide panel of lenders to find options that suit your needs. We handle the paperwork, liaise with lenders on your behalf, and guide you through each step of the process. It is our job to make sure you understand what you are signing up for before you commit to anything.

SMSF Loans Double Bay

Buy Property Through Your Self-Managed Super Fund