After helping Australians navigate the ins and outs of SMSF lending for more than 30 years, I’ve heard just about everything. Whether someone is wondering, “Can my super actually buy property?” or trying to understand “What rules apply when borrowing through an SMSF?”, the questions tend to be the same — but the circumstances are always unique.
That’s exactly why our CEO Richard, one of Brisbane’s most experienced SMSF mortgage advisers, has pulled together the most common (and most important) SMSF loan questions we hear daily. This FAQ covers eligibility, loan structures, compliance requirements, borrowing costs, and even alternatives you may not have considered.
If you’re also exploring the residential side of SMSF investing, you may find this guide helpful: our complete breakdown on buying residential property through your SMSF.
For a single person, $700,000 can provide a comfortable retirement if managed well...
Retiring at 60 with $500,000 is possible but requires careful planning...
To generate $70,000 annual income in retirement...
Generally $1.4–$1.75M without Age Pension, or $800k–$1.2M with Age Pension.
Yes, retiring at 70 with $800,000 provides a strong retirement position...
$1M can last 25–40+ years depending on withdrawal rate...
Typically 25–40+ years depending on returns and pension supplements.
Wealthy retirement usually means $100k–$150k annual income...
Only 1–2% of Australians have $2M+ in super...
Yes — $120,000/year is an excellent retirement income...
Approximately 5–7% of Australians have $1M+ in super at retirement...
Key mistakes include retiring with debt, poor diversification, non-compliance in SMSFs...
Yes, SMSFs can invest in residential and commercial property...
SMSF property can be worthwhile if you have a strong balance and long timeframe...
Most SMSFs can borrow 60–70% LVR, requiring 30–40% deposit...
Technically yes, but not recommended for property...
The 5% rule restricts in-house assets (loans to members, etc.)...
No — members and related parties cannot live in or rent SMSF residential property...
No — violates the sole purpose test...
High costs, strict compliance, liquidity limitations...
Monthly rent should equal 2% of purchase price — rarely achievable in Australia...
Assumes 50% of rent goes to expenses...
7% gross yield approximates cash flow break-even...
4–6% yield = $280–$404 per week...
Flexibility, capital allocation, opportunity cost, taxation...
Depending on returns, $10k can grow to $16k–$26k...
$1k/month for 30 years grows to $1.2M–$2.2M depending on returns...
Requires 26% annual return — unrealistic without leverage and extra contributions...
Combination of home ownership, property, superannuation and business ownership...
Invest in low-cost index funds and hold for decades...
An asset return guideline — adapted in Australia for shares, property, cash...
Healthcare, legal, accounting, engineering and other approved professions...
Doctors, dentists, medical specialists and some allied health...
LMI waiver, guarantor loan, or First Home Guarantee...
Often $90k+ for nurses/allied health; no minimum for doctors...
Be in eligible profession, meet LVR requirements, prove registration...
Yes — many lenders waive LMI up to 90% LVR...
ANZ, NAB, CBA, Westpac and several regional lenders...
Borrow 90% of value with no LMI fee — for eligible professions...
Rare — only sometimes refundable within 1–2 years...
Yes for investment property (over 5 years). No for owner-occupied.
5–10% deposit normally; 20% to avoid LMI.
Yes — guarantors allow lenders to waive LMI even with low deposit.
5–20% deposit personally; 30–40% deposit for SMSF property...
Single: $100k–$130k; couple: $110k–$160k combined...
Depends on age, goals and tax bracket — full comparison included...
Setting up and managing an SMSF can be one of the most rewarding financial decisions you make — but it’s not for everyone. It’s a powerful tool for those who value control, flexibility, and tailored investment strategies, but it also demands diligence, compliance, and ongoing attention.
Bottom line: Treat your SMSF like a business. Make decisions with a clear strategy, informed advice, and the discipline to follow through. Done right, your SMSF can be a cornerstone of a secure and prosperous retirement.
Ready to explore SMSF property investment? These are complex waters, but you don't have to navigate them alone. With our 50+ years of combined experience, we've guided hundreds of clients through successful SMSF property purchases across Brisbane and the Sunshine Coast.
Get in touch for a no-obligation chat about whether SMSF lending could work for your retirement strategy. Real advice from real people who understand the local market.
8 min read Self-managed super fund property investment has become one of the
