More Australians are exploring Self Managed Super Funds (SMSFs) to take control of their retirement savings — and one powerful strategy includes using your SMSF to invest in property.
But SMSF loans are complex and regulated under strict legal and financial frameworks. This guide breaks it down clearly — and shows how Anitha Varghese at Kanova Loans can guide you every step of the way.
An SMSF (Self Managed Super Fund) is a private superannuation fund managed by you or a group (up to 6 members). Unlike retail or industry super funds, SMSF members are also trustees, meaning you make the investment decisions — and are responsible for compliance.
SMSF Trustees: You (and any co-members) act as trustees of the fund.
SMSF Accountant & Auditor: Handles compliance, financial reporting, and mandatory annual audits.
Mortgage Broker: Like Anitha Varghese, who finds the right lenders, structures the loan legally, and ensures documentation is correct.
SMSF Lender: A bank or specialist lender offering non-recourse loans.
Legal Team: To set up a compliant SMSF Trust Deed and Bare Trust structure.
SMSFs are not allowed to borrow directly, so a separate Bare Trust is created to hold the property and take out the loan. This structure protects the SMSF from risk — the loan is non-recourse, meaning if the loan defaults, the lender can only seize the property (not other SMSF assets).
🔐 The Bare Trust becomes the legal owner, while the SMSF remains the beneficial owner.
Lenders generally require:
20–30% deposit from your SMSF balance (or more depending on lender)
Total SMSF balance of at least $200,000–$250,000 to ensure liquidity post-purchase
Ability to meet loan repayments strictly from SMSF income (rent and contributions)
Yes — SMSF loans usually have higher interest rates than standard investment property loans. Why?
Lenders take on more risk
Legal and compliance requirements are stricter
Limited lender market for SMSFs
👉 Expect rates around 6.5%–7.5% p.a. approximately, depending on loan size, LVR, and lender policies.
SMSF setup & Trust Deed: $2,000–$3,000+
Bare Trust setup: $1,500–$3,000
Annual audit & accounting: $2,000+
Loan application/legal fees: Varies by lender
Stamp duty: Applies fully — even on incorrect transfers, with no state concessions for errors.
💡 Note on Fees & Costs:
The fees and costs listed above are estimates based on industry averages as of July 2025. Actual costs may vary depending on your SMSF structure, service providers, and lender policies.
If your SMSF buys property from a related party, it must comply with strict rules under section 66 of the SIS Act. Non-compliance can result in:
Auditor rejection
A forced rescission of the transaction
Repayment of stamp duty again
Prosecution and penalties for trustees
✅ Always seek written advice from your SMSF auditor before proceeding with such transactions.
Prepares the SMSF’s financials
Ensures audit-ready compliance
Guides on super contributions, liquidity requirements, and income projections
Works closely with your mortgage broker and legal team
At Kanova Loans, we simplify SMSF lending by managing:
✅ Lender comparisons (big 4 banks & specialist SMSF lenders)
✅ Loan structuring with Bare Trusts
✅ Working with your accountant and solicitor for seamless compliance
✅ Application preparation and settlement support
With over 10 years of experience, Anitha Varghese helps you avoid costly mistakes and make confident, compliant investment decisions.
| Topic | Details |
|---|---|
| Minimum SMSF Balance | $200,000+ |
| Deposit Required | 20–30% |
| Loan Type | Non-recourse |
| Structure | SMSF → Bare Trust → Property |
| Key Players | Trustees, Broker, Auditor, Accountant, Solicitor |
| Compliance | Annual audit, SIS Act, related party rules |
Let Anitha Varghese and the Kanova team ensure your investment is structured, compliant, and stress-free. 📞 Call us today or book online.
Kanova Loans proudly supports SMSF property investors and borrowers across:
Oran Park, Camden, Narellan, Leppington, Gregory Hills, Campbelltown, Harrington Park, Edmondson Park, Liverpool, Prestons, Ingleburn, Macarthur Region, South West Sydney, and greater Sydney metro areas.
Although we’re based in Sydney’s South West, Kanova Loans proudly assists clients across all of Australia through secure phone consultations and online Zoom meetings. Whether you’re in Brisbane, Melbourne, Perth, or regional NSW — we’re here to help you with SMSF loans, home loans, and more.
Whether you’re setting up your first SMSF or seeking expert help structuring a compliant SMSF loan, Anitha Varghese and the Kanova Loans team are here to help — in person, over the phone, or via Zoom.
Disclaimer: Kanova Loans and Anitha Varghese are authorised to provide credit assistance under the National Consumer Credit Protection Act. However, we are not licensed to provide financial product advice under the Corporations Act. For advice regarding SMSFs, retirement planning, or superannuation contributions, we recommend you consult with a licensed financial adviser or SMSF specialist.
© Kanova Financials PTY Ltd
| ACN 634 774 002 | Australian Credit Licence 389328 | CRN: 486204
Kanova Loans helps Australians access home, car, and commercial finance through expert guidance and top lender comparisons — led by trusted senior mortgage broker Anitha Varghese.
