SMSF Loans Borrowing
Borrowing to Invest with a Self-Managed Super Fund
Borrowing through a Self-Managed Super Fund (SMSF) can be a smart strategy to grow your retirement wealth, especially when investing in property or assets. At SMSF Depot, we guide trustees through compliant borrowing structures to ensure long-term returns and ATO compliance.
What Is Limited Recourse Borrowing Arrangement (LRBA)?
Under SMSF rules, trustees can borrow via a structure called an LRBA (Limited Recourse Borrowing Arrangement). This means your SMSF borrows funds to purchase a single acquirable asset usually property while limiting the lender’s recourse to only that asset.
When Can an SMSF Borrow?
Borrowing is permitted when:
The asset aligns with your Investment Strategy.
Your Trust Deed allows borrowing.
The asset is not for personal use.
This strategy is commonly used to invest in:
Residential or commercial property
Shares or managed funds (less common due to setup cost)
Compliance and Structuring with SMSF Depot
At SMSF Depot, we help set up LRBAs, Bare Trusts, and guide you through the full lending process. We ensure:
Compliance with ATO regulations
Proper asset titling and structure
Assistance in loan sourcing and documentation