Residential SMSF refinance

Making it easy to understand

Refinancing existing compliant SMSF loans for residential property

While SMSF lending is no longer allowed for residential property purchases where the contract of sale was exchanged after 10 August 2026, eligible existing SMSF lending for residential properties can still be refinanced.

If you have corporate trustee clients with an existing SMSF loan secured by residential property, refinancing may provide an opportunity to review current lending arrangements.

Who is this for?

This solution may suit SMSF corporate trustee clients who:

Already have an SMSF residential loan
Have an existing SMSF
Have an existing ATO compliant LRBA structure, including an existing Bare Trust
Are looking to review their current lending arrangements
Need an SMSF lending solution for a property where the contract of sale was exchanged before 10 August 2026

Key SMSF loan options that might help

Up to 90% LVR
Loan amount from $100k - $ 3million
No liquidity requirements
Min $150k net assets
Up to 30 year terms
Directors with credit impairment can be considered
Redraw available for compliant SIS Act purposes*

Property types

Pepper Money will consider the security types below where a contract of sale was exchanged before 10 August 2026:

House
Unit
Villa
Townhouse
Lifestyle properties
Serviced apartments
Studio apartments
Dual key
Other boarding and rooming houses

Key considerations: Refinancing options for residential property

What stays the same?

Property use and purpose must remain unchanged
Must be SIS Act compliant
No increase in loan amount (except for refinance fees and charges)

What's not permitted?

The loan amount cannot be increased
Changes to property use

Typical eligible security types

Houses (single title)
Units (single title)
Villas
Townhouses

The refinance process made easy

If they think it’s right for them, apply online with our super easy SMSF refi.* For corporate trustees only.

A light touch serviceability assessment based on the last 6 month’s repayment history, if

It’s for the same loan amount (plus loan set up fees)

Repayments have been made on time

Monthly repayments reduce; and

It’s up to 80% LVR

Step 1: Simply review the client’s existing SMSF structure

Confirm:

SMSF structure including the Limited Recourse Borrowing Arrangement (LRBA)
Corporate trustee structure

Step 2: Confirm compliance

The existing arrangement must be compliant with SMSF borrowing requirements and ATO and SIS Act compliant.

Step 3: Package the application

Gather supporting documentation and submit the refinance application for assessment.

Documentation requirements will vary depending on the scenario; however, this may include:

Existing loan information

Existing SMSF loan statements
SMSF documentation
SMSF Trust Deed
Variations to the Trust Deed (if applicable)
Identity verification for each member

Bare Trust documentation

Bare Trust Deed

Supporting documentation

Lease documentation (where relevant)
Other supporting information required for assessment including identity verification documents for each member
Contract of Sale (exchanged before 10 August 2026)
Privacy consent

All applications are subject to credit assessment and eligibility criteria, lending limits, valuation requirements, and SMSF compliance requirements. Terms, conditions, fees and charges apply.

Want to know more?

Talk to your BDM or workshop the scenario with the Pepper Money team. We’re here to help make SMSF lending easy.

Talk to your BDM

Important Information

Information is correct as at 28 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.

* Redraw available – twice a year per the anniversary of the loan, up to $50k at a time for repairs and maintenance of security property only