SMSF Borrowing Calculator
Buying property inside a self-managed super fund involves a specific loan structure called a limited recourse borrowing arrangement, and the numbers work differently to a standard investment loan. This calculator is built for SMSF trustees who want to check whether a purchase is viable before spending money on setup costs and advice.
How to use this calculator
Start with the basics: property type, state, purchase price, and your target LVR. If you are not sure on LVR, leave it at the 80% default and adjust once you have spoken to a lender. Residential SMSF loans typically go to 80%, commercial to 70%.
The fund section is where this calculator does its real work. Enter your total fund balance (not just cash – include shares, existing property, and any other assets), the liquid assets you could realistically use for the purchase before settlement, and your combined annual contributions. The calculator uses these figures to run three fund health checks: whether you have enough liquidity to cover the upfront costs, whether the fund can service the loan from contributions and rent income, and whether the loan is proportionate to your fund size.
The expandable section lets you add running costs (fund admin, audit, ASIC levy, property maintenance, strata) if you want a more accurate cash flow picture. The setup cost field captures bare trust establishment and lender application fees, which are upfront amounts that come out of the fund.
Results update as you type. The repayment comparison shows both interest only and principal and interest side by side so you can see the cash flow difference. Note that SMSF loans carry higher interest rates than standard investment loans and are available through fewer lenders, so the rate field is worth updating once you have a lender in mind.
Common Questions
How much can an SMSF borrow to buy property?
There is no fixed cap on the dollar amount, but most lenders apply stricter LVR limits than they would for a personal investment loan. For residential property, the typical maximum is 80% LVR. For commercial property, most SMSF lenders sit at 65-70%. Your fund also needs to demonstrate it can service the loan from contributions and rental income, and lenders want to see that the purchase does not leave the fund dangerously illiquid. The fund health checks in this calculator give you an early read on where you stand before you approach a lender.
What is a limited recourse borrowing arrangement?
An LRBA is the legal structure used when an SMSF borrows to buy an asset. The “limited recourse” part means the lender’s claim is limited to the asset being purchased – they cannot go after other fund assets if the loan defaults. The property is held in a separate bare trust during the loan term and transfers to the SMSF once the loan is repaid. Setting this structure up correctly requires a solicitor, an SMSF-specialist lender, and usually an SMSF administrator or accountant familiar with the rules.
Can I use any lender for an SMSF loan?
No. The pool of lenders offering SMSF loans is significantly smaller than for standard investment loans, and not all of them lend for both residential and commercial property. Some have minimum fund balance requirements, others have restrictions on property type or location. Rates are also higher than standard investment rates because of the additional complexity and risk from the lender’s perspective. Part of what I do is identify which lenders are actually available and competitive for your specific fund and purchase.
Does the SMSF need to be set up before I apply?
Yes. The fund needs to be established and have a trust deed in place before a lender will assess an application. You also need a bare trust established specifically for the property being purchased – this is separate from the SMSF itself. If your fund is not yet set up or is newly established, that affects timing and, in some cases, lender eligibility. If you need help with either the SMSF or bare trust setup and are not sure who to use, get in touch and I can connect you with specialists in my professional network who handle this regularly.
SMSF property lending is one of the more complex areas of the mortgage market, and the calculator is a starting point, not a green light. If the fund health checks are looking reasonable and you want to understand what a lender would actually approve, book a call directly using the button below and we can go through your fund’s numbers together.
