A general guide to the factors that drive SMSF borrowing capacity — deposit, liquidity, rent and serviceability. Not financial or tax advice.
7 June 2026 · By Foundation Finance · Last reviewed 10 June 2026
What we can — and can’t — advise on
Foundation Finance operates as a credit representative under an Australian Credit Licence. We can advise on the credit product — the loan itself, how it’s structured, and which lenders suit your situation. Whether a self-managed super fund, trust or company structure is right for you is financial product, tax and legal advice, which sits with your licensed financial adviser, accountant or solicitor. This page covers the credit side only.
"How much can our SMSF borrow?" is the first question most trustees ask. The honest answer is: it depends on the fund and the lender. Here are the main factors, in general terms — this is not financial product or tax advice.
What drives SMSF borrowing capacity
Fund balance and deposit — SMSF loans usually need a larger deposit (lower LVR, often around 70–80%), so the fund's available balance is a key limit.
Liquidity buffer — lenders typically want the fund to keep a cash buffer after the purchase, so not all of the balance is available as a deposit.
Rent + contributions — the property's expected rent plus ongoing contributions are assessed for serviceability, usually at a higher buffer rate than a standard loan.
Lender policy — SMSF lenders vary widely in LVR, minimum loan size, liquidity tests and which properties they accept.
Get an indicative figure
Our SMSF borrowing power calculator combines a deposit-based limit and a serviceability-based limit and shows the lower of the two. It's indicative only and not financial or tax advice — your actual capacity depends on lender policy and your fund's full position.
The big caveat
Whether your SMSF should borrow to buy property is a decision for you, a licensed financial adviser and your accountant — not something we advise on. We arrange the loan once that decision is made. See SMSF property loans.
Who handles what
Getting it right usually means a small team. Here’s who does which part — we’ll gladly work alongside your other professionals.
Us (Foundation Finance)
The loan — structure, features, lender selection, serviceability and the application.
Licensed financial adviser (AFSL)
Whether an SMSF or investing via super suits you, and any financial-product advice.
Registered tax agent / accountant
Your tax position — negative gearing, deductions and CGT for your circumstances.
Solicitor
Legal structures, trust deeds, contracts and asset protection.
Quantity surveyor
An ATO-compliant tax depreciation schedule for your property.
General advice warning: The information on this page is general in nature and factual only. It does not take into account your objectives, financial situation or needs, and is not financial product, tax, credit or legal advice. Tax, superannuation and SMSF outcomes depend on your circumstances — speak to a registered tax agent and a licensed financial adviser before acting. Any estimates or calculator results are indicative only and not an offer of credit, a quote, or a guarantee of approval or savings.
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