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SMSF loans and regular home loans both finance property, but they operate under different rules. An SMSF loan is taken out by your super fund for investment property and must meet strict superannuation regulations. A regular home loan is taken out by individuals for owner occupied or investment use. Residential Lending Group connects you with trusted SMSF specialists to help you choose the right structure for your goals.
This diagram shows how a Limited Recourse Borrowing Arrangement works within an SMSF. SMSF members make contributions into the fund. The SMSF enters into an LRBA with a lender to purchase an asset. The property title is held in a bare trust while the loan is repaid. Rental income and contributions support repayments. The lender holds a mortgage over the asset, and recourse is limited to that asset only.
Thinking about setting up a Self-Managed Super Fund? An SMSF gives you direct control over your retirement investments, including property, but comes with strict responsibilities and compliance requirements. This guide outlines the key steps involved and explains how Residential Lending Group can connect you with trusted SMSF specialists to support your setup and financing journey.
