Understanding how we assess SMSF lending scenarios
SMSF lending involves specific structures, documentation requirements and regulatory considerations. This page provides a practical overview of how we approach SMSF lending.
Whether your SMSF corporate trustee client is exploring a refinance of existing SMSF property (acquired before 10 August 2026) or a new business real property opportunity, understanding the basics can help you package strong applications.
Eligibility
SMSF lending is available to eligible Corporate Trustee SMSFs and is subject to credit assessment, lending criteria and SMSF compliance requirements. Terms, conditions, fees and charges apply.
Key SMSF policy features
| Policy area | Policy |
|---|---|
| SMSF structures we support |
|
| Assets required | Only $150k net assets required |
| Liquidity requirements | No liquidity requirements |
| Credit impairment | SMSF corporate trustee directors with credit impairment accepted. Prime option:
Near Prime option:
|
| Additional contributions | Additional contributions that can be satisfactorily evidenced from recurring income streams |
| Prime to Near Prime options | Full & Alt Doc |
| O/O purpose | O/O purpose (associated trading business tenancy agreement) available for commercial security |
| Loan sizes | Loan sizes from $100k - $5 million |
| Loan terms | Up to 30 year loan terms |
| Interest only | Up to 5 years interest only |
| LVR |
|
| Redraw |
|
Acceptable purposes
Residential refinance
Commercial property
Security types
Residential refinance
contracts exchanged before 10 August 2026
- House
- Unit
- Villa
- Townhouse
- Lifestyle properties
- Serviced apartments
- Studio apartments
- Dual key
- Other boarding and rooming houses
Business real property acquisition and refinance
- Office
- Industrial
- Retail
- Commercial property
- Boarding and rooming houses (subject to policy)
- Residential – used 100% for ongoing business purposes for the term of the loan (evidence must be provided)
Want to know more?
Frequently asked questions
A Bare Trust is used by an SMSF generally to acquire a loan to purchase a property while complying with the SIS Act. The Bare Trustee holds the legal title to the property (and the mortgage) during the loan term, while the SMSF holds the beneficial interest. Once the loan is repaid, the asset will be transferred to the SMSF.
An LRBA is an arrangement where the SMSF trustee obtains a loan to purchase the relevant asset, the asset is held in a bare trust and the SMSF acquires a beneficial interest in the asset. After the loan has been repaid, legal ownership of the asset is transferred to the SMSF
Business real property is property used wholly and exclusively for business purposes. The focus is on how the property is being used rather than simply its zoning. To comply with the definition of business real property, the asset must be wholly and exclusively used for business purposes for the duration of the LRBA. Your client’s financial and tax adviser will provide information in relation to eligible business real property.
Important Information
Information is correct as a28 July 2026 and subject to change at any time.
This content is for accredited Pepper Money brokers, introducers and intermediaries, including those applying for accreditation. It shouldn't be distributed to or relied upon by consumers.
It is recommended that your clients obtain independent financial and tax advice.
