What’s changing

New legislation will prevent SMSFs from using a Limited Recourse Borrowing Arrangement (LRBA) — the structure that allows a super fund to borrow money to purchase property — for residential property purchases from 10 August 2026.

In plain terms: an LRBA lets your SMSF borrow to buy an investment property, with the loan secured only against that property rather than the fund’s other assets. From 10 August 2026, this pathway will no longer be available for new residential purchases.

The good news: if a property purchase contract is exchanged on or before this date, it remains valid under the current rules — even if settlement takes place afterwards. Existing SMSF loans and arrangements aren’t affected either way.

Introducing the Uptain SMSF Residential Special

To help eligible borrowers make the most of the time remaining, Uptain is offering a promotional variable rate on new SMSF residential purchase loans.

Offer highlights:

• Variable rate from 6.94% p.a.*
• Up to 80% LVR (loan-to-value ratio — the portion of the property’s value you can borrow)
• Available under a compliant SMSF Bare Trust structure
• For new SMSF residential purchase applications only

To qualify

• The property purchase contract must be signed on or before 10 August 2026.
• Settlement must occur within 90 days of formal loan approval.

What to do next

If this is something you’ve been weighing up, the practical step is simple: talk to your mortgage broker. We’ll be able to walk you through whether an SMSF purchase makes sense for your situation, help you understand the numbers, and manage the process end-to-end so the contract can be signed in time.

For brokers: if you’ve got a client considering an SMSF residential purchase, now’s the time to bring the scenario to us — time-sensitive contracts move faster when we hear from you early.

Disclaimer: This offer is a limited-time promotion valid until 31 August 2026 and may be withdrawn or varied at any time. Not available for pre-approval applications. Subject to Uptain’s credit assessment, lending criteria, and loan eligibility requirements. Fees and charges apply. Interest rates are subject to change after settlement in accordance with the loan terms and conditions. Terms and conditions apply.

Information regarding SMSF borrowing legislation in this article is general in nature only and does not constitute financial, legal, or tax advice. You should seek independent professional advice about your SMSF and how these legislative changes may affect your circumstances.