SMSF Property Loans: Can You Still Refinance After the 10 August 2026 Changes?
New SMSF loans for residential property are restricted from 10 August 2026. Existing loans and refinancing are not. Here is what that means.
The short version
- New SMSF loans (called limited recourse borrowing arrangements, or LRBAs) to buy residential property are restricted from 10 August 2026. New loans are limited to business real property.
- Loans that existed before 10 August 2026, and refinancing them, are not affected.
- Contracts that were binding and exchanged before that date are also exempt.
- Few lenders do SMSF loans, so rates, rules and fees vary a lot. Get advice from your SMSF accountant and solicitor first.
If you hold an investment property inside your self-managed super fund (SMSF), the rules just changed. The headlines can be confusing, so here is what we know, and what it means for refinancing.
What changed on 10 August 2026
The Government passed new laws in the Treasury Laws Amendment (Tax Reform No. 1) Act 2026, which received Royal Assent on 26 June 2026. From 10 August 2026, a new SMSF borrowing arrangement can only be used to buy business real property, such as commercial premises. It can no longer be used to buy residential property.
| Situation | What it means |
|---|---|
| New SMSF loan for residential property from 10 August 2026 | Restricted under the new rules |
| Existing SMSF loan from before 10 August 2026 | Not affected |
| Refinancing an existing SMSF loan | Not affected |
| Contracts binding and exchanged before 10 August 2026 | Exempt |
| New SMSF loan for business real property | Still allowed |
Can I still refinance my SMSF loan?
If your loan was in place before 10 August 2026, refinancing it is not affected by the new rules. That does not mean every lender will say yes. Lender policies differ, and the market for SMSF loans is small.
Lenders that offer SMSF loans commonly look at:
- How much your fund holds in cash and other assets after settlement.
- The fund’s income, including contributions and rent.
- The loan-to-value ratio. Deposits for SMSF loans are often larger than for normal home loans.
- Whether your trust deed allows borrowing.
- The property and the structure, including the bare trust that holds it.
Rates on SMSF loans are often higher than standard investor loans, so shopping around can matter.
SMSF rules are strict, and the penalties for getting them wrong are serious. Before you refinance, talk to your SMSF accountant and your solicitor about your fund and your trust deed. We can then help with the lending side.
Get the SMSF Refinance Checklist
The questions to ask and the documents to gather before you refinance a loan inside your SMSF.
Send me the checklistWe will email it straight to you.Your next steps
- Find the date your SMSF loan was set up.
- Book time with your SMSF accountant and solicitor.
- Gather your fund’s financials and trust deed.
- Talk to us about lenders who offer SMSF refinancing.
Sources and when we checked
Figures checked on 16 October 2026. Sources: Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (Royal Assent 26 June 2026); Australian Taxation Office (SMSF borrowing changes from 10 August 2026). Rules, rates and thresholds can change, so confirm with the official sources or a broker before you act. This article is general information only and is not personal advice.
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This article is general information only and does not take into account your personal financial situation, needs or objectives. Consider whether it is appropriate for you before acting on it. Figures and rules can change, so always check the latest details with the relevant authority.
Richard Morris is a Credit Representative (CRN 570376) of Strategic Mortgages Perth (ACR 570592), authorised under Connective Broker Services Pty Ltd (Australian Credit Licence 389328). This is not tax or legal advice. Please speak to your accountant or solicitor about your own situation.