SMSF Loans


SMSF loans are complex and often problematic. Secura's process gives you a quick response and an easy path to settlement. 

Secura Super Loans for SMSFs

If you have a Self Managed Super Fund (SMSF), your SMSF may be able to borrow from Secura Funds in order to purchase a commercial or retail investment property or a residential investment property, as long as you utilise an acceptable structure. In this situation, your SMSF will provide an equity contribution from its superannuation funds assets and may be able to borrow the balance of the purchase cost.

Our Secura Super Loans are not for consumers and are not governed by the National Credit Code.  We only lend to SMSFs with a company as trustee.

Borrowing in your SMSF to purchase an investment property

Our loans are available for new and established SMSFs. The benefit of gearing through a loan creates the potential for an SMSF to acquire property worth more than its SMSF's available cash funds. Some of our key loan parameters are:

Borrower We only lend to SMSFs that have a company as trustee.
Property Types We lend on commercial and retail properties and residential investment properties. For commercial properties, we can lend where the SMSF members or a related party are also the tenants of the property.

We lend based on asset value (determined by a valuation from one of our panel valuers) and loan serviceability by the SMSF.

Loan Amount We can provide loan amounts from $300,000 to $1,500,000.

Higher or lower amounts are subject to negotiation.

LVR Our Super1 Loans apply up to 60% of the value of the property. If you want to borrow more, you may be able to take out an additional Super2 Loan.
Security Our Super1 Loans are secured by 1st mortgage and also require a guarantee from the SMSF Trustee’s directors.

All our Super Loans operate as limited recourse loans – this means that the amount recoverable from the SMSF on default is limited to the secured property itself, and all other assets of your SMSF are protected.

Term Standard fixed term of 1 year.

Potential for annual agreed rollover for up to 5 years in total.

Payment Interest only, during the Term.
Interest Rate We determine the interest rate based on each loan proposal.

Interest is payable monthly in arrears.

Interest rates are fixed annually for the term of the loan. Each year, they are adjusted proportionally for movements in the RBA cash rate. If you are unhappy with the adjustment, you have 3 months at the old rate to re-finance.

Super2 Loans


If you want to borrow a bit more, you can take out an additional Super2 Loan.

LVR: A Super2 Loan allows you to borrow up to 80% LVR on a residential investment property and 75% on a commercial property.

We set the interest rate based on each loan proposal. The interest rate for Super2 Loans is approx. 50% higher than for the Super1 Loan.

Our Fees* Establishment fee:  The higher of $5,000 and 2% of the principal sum.

Management fee: 2% p.a. plus GST payable at the same time as interest.

Rollover fee: By negotiation, for each annual rollover of the loan,

  *Other fees and expenses may payable to third parties including legal fees and valuation fees.

Restrictions The property must be an asset that meets the 'sole purpose test' of solely providing retirement                 benefits to fund members.

If a residential property, it must not be (i) acquired from a related party of a member: (ii) Lived in by a fund member or any fund members' related parties (iii) Rented by a fund member or any fund members' related parties.

No development, construction or refurbishment.

No vacant land.

No redraw facility is available.

The loan must be for a single property.

An existing property can be refinanced, if the property meets the requirements of the SIS Act.

A loan for an existing property bought without borrowing is not allowed; however you can borrow to repay existing SMSF loans plus costs.

A director’s guarantee must not allow indemnity against the Property Trustee.

How It Works

The rules around borrowing through an SMSF are complex. In summary, a Property Trustee will purchase the property on behalf of the SMSF and become the property’s legal owner, holding it in trust for the SMSF Trustee as beneficial owner.

  • The rules for purchase/borrowing in relation to a property in an SMSF require that you appoint a Property Trustee to purchase the property on behalf of your SMSF Trustee. It is the Property Trustee that enters into the Contract of Sale and pays the deposit.
  • Your SMSF Trustee applies for a Secura Super Loan. If your loan is approved, at settlement the Property Trustee mortgages the property to Secura.
  • At settlement, your SMSF Trustee pays the balance of purchase price after the loan, all legal costs and stamp duty.
  • After settlement, your SMSF Trustee collects rent, pays the usual outgoings on the property and makes the loan repayments. It manages the property in the same way as any other real estate investment.
  • The property is held in trust for the SMSF Trustee by the Property Trustee and once the loan is repaid, the legal title may be transferred from the Property Trustee to the SMSF Trustee, or the property may be sold.

You should speak to your financial planner and professional tax adviser before deciding whether to borrow in order to invest within your SMSF. Unless your SMSF can fund the cost of the purchase, you should not sign a Contract before you know that you can borrow.

What you'll need to apply

As we mentioned above, the rules around borrowing through an SMSF are complex. In addition to the usual financial information for a loan application, we need to check your legal structure. Go to our Contact page for our contact details.

Established SMSF If you have an established SMSF, we will need to see:

A certified copy of SMSF Trust Deed

A certified copy of Property Trust Deed

One of our panel legal advisors will review of the SMSF Trust Deed and the Property Trust Deed prior to settlement. If you have used an approved SMSF legal service provider, we can accept their certificate without our own review.

New SMSF If you are setting up a new SMSF to make a purchase, you can choose to use an SMSF legal service provider approved by us to provide the SMSF legal documentation. These lawyers will act for you, not us. The advantage of this approach is that you will receive a cost-effective document package that complies with current legal requirements and is acceptable to us without the extra cost of legal review by our lawyers.  Your own lawyer can still do the conveyancing.


Investing With Us 

In addition to borrowing for your SMSF’s investment property, you may also like to invest funds with us through your SMSF. We offer excellent returns to our investors on 1st mortgage investments and 2nd second mortgage investments.  For more information on our current loans, click here.