SMSF Refinance Eligibility: What Lenders Look For
Not every SMSF loan can be refinanced, and not every fund qualifies with every lender. These are the typical benchmarks we see when we assess an SMSF loan refinance. Each lender sets its own criteria, so we confirm current requirements during your assessment.
Eligibility Benchmarks
| Criterion | Typical Benchmark |
|---|---|
| Loan-to-Value Ratio (LVR) | Up to 80% for commercial property |
| Fund Liquidity | Some lenders require approximately 5% of loan amount or total SMSF debts in liquid assets post-settlement; requirements vary by lender |
| Min. SMSF Balance | Generally $200,000+ in total fund assets, though some lenders do not impose a minimum |
| Property Type | Commercial (investment, or business premises leased at market rent); sole purpose test must be met |
| Loan History | Clean repayment record on the existing SMSF loan |
| Bare Trust Structure | Original bare trust must remain intact; asset cannot have changed legal hands |
Documents to Have Ready
• SMSF trust deed and bare trust deed
• Last two years’ SMSF financial statements and tax returns
• Current loan statements and lender details
• Rental income evidence and the lease (for commercial premises)
• Current valuation or agent estimate
• Trustee identification and the fund’s investment strategy
Rules That Apply to Every Refinance
The new loan must replace, not increase, the existing borrowing. The asset must stay in the bare trust, and the trustee must never hold legal title during the switch. Existing LRBAs entered into before 10 August 2026 can still be refinanced; see the FAQs.
Special Cases
Last reviewed: October 2026.
