Last updated on 10 October 2026
Which banks give loans to SMSF?
While most major Australian banks no longer offer SMSF loans, there are several second-tier banks and hundreds of non-bank lenders who are now leading this field.
SMSF Australia do not recommend any specific lending institutions but have compiled a selection of banks and non-banks who do offer loans to SMSF in relation to limited recourse borrowing arrangements (LRBA).
The LRBA rules were updated on 10 August 2026, limiting property acquisition to business real property (BRP). The government ban on residential loans does not impact existing LRBAs. An SMSF can still acquire eligible residential property or vacant land, provided it can pay for it from fund cash resources and does not require a loan.
| Lending Institution | Type | Investments | Security trust/Bare trust/Custodian |
| NAB Super Lever | Bank | Shares, ETFs and Managed funds | NAB security trust |
| BOQ SMSF loans | Bank | Residential and commercial property | SMSF custodian |
| La Trobe Financial | Non-bank lender | Residential and commercial property | SMSF custodian |
| Flexdoc – AMP Super Edge returning to SMSF lending from Q1 2026 | Flexdoc is a mortgage broker and AMP is a Bank | Residential and commercial property | Depend on the lender but generally will be SMSF custodian |
| Redzed | Non-bank | Residential and commercial property | SMSF custodian |
| loans.com.au – residential loans | Non-bank lender | Residential and commercial Property | SMSF custodian |
| Liberty Financial | Non-bank lender | Residential and commercial Property | SMSF custodian |
| Better Mortgage Management | Non-bank lender | Residential and commercial Property | SMSF custodian |
| Mortgage House | Mortgage broker and non-bank lender | Residential and commercial Property | SMSF custodian |
| Reduce SMSF Loans | Non-bank | Residential property | SMSF custodian |
LVR – loan to value ratio
ETFs – Exchange traded funds
Deciding on the best option for your SMSF depends on a number of factors such as:
- Interest rates
- Loan to value ratio
- Fees
- Loan term
- Repayments
The SMSF lending environment is constantly changing. Generally, commercial lending has lower loan to value rations (LVR) than residential property which means an SMSF will need a higher deposit. Some lenders have an LVR of 80% for residential and commercial property which may eventually go higher. Of course, each lender will vary and research is important.
Banks and non-banks
Banks are regulated by APRA and ASIC and are funded from customer deposits and other wholesale sources and provide transaction accounts, savings and loans. Examples of banks include traditional banks such as Westpac, NAB, CBA and ANZ and credit unions such as Great Southern Bank, Newcastle Greater Mutual Group and Beyond Bank.
Non-bank institutions are regulated by ASIC, do not hold a banking license and are financial institutions that primarily provide loans and include on-line lenders and specialised mortgage providers. Non-banks are not deposit taking institutions and do not provide transaction accounts.
Hint – Using an offset loan account from a bank can help lower your mortgage balance, which may save the SMSF interest on the loan. The ATO do not consider an offset account being a borrowing or a charge. However, if a non-bank provides an offset account, it might not meet SIS requirements. Often, an offset account is set up as a sub-account of the main loan, which could breach the borrowing rules. The ATO have warned SMSF trustees to do their due diligence before setting up an offset account with a non-bank lender.
We strongly recommend you seek advice from your superannuation specialist and financial planner before establishing an LRBA to ensure compliance with legal and SIS requirements and ensure it meets the retirement goals of the SMSF members.