SMSF Refinance

The Superannuation Industry (Supervision) Act 1993 (Cth) permits the refinancing of a limited recourse borrowing arrangement loan if specific criteria are met. SMSF loans, like any other property loan, can be refinanced, allowing the Fund to have a lower interest rate. Regularly assessing loan arrangements can help your SMSF save money and continue to build a solid financial future.

Things to keep in mind when refinancing your SMSF loan:

  1. Terms and conditions

The terms and conditions of SMSF loans are typically extensive. As a result, before deciding to refinance, SMSF trustees should familiarize themselves with these terms. In order to reflect the new lender, the Deed of Custodian Trust may need to be amended as well.

2. Decisions and requirements issued by the ATO

Be aware of ATO requirements while refinancing loans in the SMSF. The amount borrowed by the Fund against the property cannot be increased by refinancing the loan. It’s also worth noting that the loan can’t be used to ‘upgrade’ the asset.

Criteria for eligibility:

  • To refinance an SMSF, you must generally meet a number of stringent approval conditions, which include:
  • Borrowing up to 80% of the property’s worth is possible (so the entire cost to switch or refinance the loan must be no more than this amount).
  • An SMSF home loan can only be used to purchase a typical residential property in a metro area.
  • After settlement, you should have between 10 and 20% of the property worth in liquid assets.
  • The new loan cannot be larger or smaller than the existing loan, and it must have a period of 15 to 30 years.
  • The current loan must be older than one year and have been paid on time for the previous six months.

Documents required for SMSF refinancing: 

  • SMSF trust deed
  • Custodian trust deed
  • Most recent super fund statement evidencing contributions, investments, rental
  • Audited SMSF annual returns for the previous two years.
  • A letter from an accountant confirming that the company trustee is not in trading.
  • Tax and regulatory returns for the fund.

SMSF Refinancing FAQs

Can I use the refinance to gain equity?

While you can refinance an SMSF loan, you can’t release equity or raise the amount you’re borrowing under the Superannuation Industry (Supervision) Act 1993 (SIS Act). It’s important to mention that necessary security property repairs and maintenance may be approved in certain instances.

How long will refinancing my SMSF loan take?

From application to settlement, refinancing an SMSF loan takes a bit longer than refinancing a standard loan, and can take anywhere between four and six weeks. This is due to the fact that SMSF lending is a highly specialized sector of lending that necessitates far more documentation than a standard home loan.


Refinancing an SMSF loan is more difficult than refinancing a standard home loan, and it necessitates a lot more paperwork. OzBroker can assist you with getting your application approved hassle-free. You may contact us at or 0426667696


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