SMSF borrowing capacity calculator
Estimate how much your SMSF may borrow for property under a limited recourse borrowing arrangement. Test balance, contributions, rent and rates first.
How much can an SMSF borrow for property?
An SMSF can borrow for property only through a limited recourse borrowing arrangement. Lenders typically assess the fund's balance, member contributions, expected rent and liquidity, and often require a larger deposit than personal loans. Use this estimate to frame the conversation, then confirm lending, compliance and suitability with an SMSF specialist in Australia.
Liquidity matters as much as the loan
Funds that borrow heavily for one property can be left with little cash for repayments, member benefits or vacancies. Lenders and auditors look closely at remaining liquidity.
Strict rules on the property
The property must meet the sole purpose test, cannot be lived in or rented by members or related parties if residential, and generally cannot be substantially improved using borrowed funds.
Costs to factor in
Include establishment, bare trust, legal, audit and accounting costs alongside the deposit and duty. These ongoing costs reduce net returns.
Frequently asked questions
Can my SMSF borrow to renovate?
Borrowed money generally cannot be used to improve the property. Repairs and maintenance rules are specific; get advice.
Do all lenders offer SMSF loans?
No. Fewer lenders offer LRBA loans and criteria vary.
Is the estimate approval?
No. Lenders make their own assessment.