A Limited Recourse Borrowing Arrangement (LRBA) is a specialised borrowing structure used by eligible SMSFs to acquire certain assets, including qualifying commercial property.
Under an LRBA, the lender’s security is generally limited to the asset purchased under the arrangement rather than the SMSF’s broader asset pool.
Because these structures involve specific legal, compliance, and lending requirements, they must be established correctly from the outset and are typically implemented with assistance from accountants, solicitors, financial advisers, and specialist lenders.
Other FAQs
Recent legislative changes mean new SMSF borrowing arrangements for residential property are generally no longer available. However, eligible SMSFs may still be able to borrow to acquire qualifying commercial property [...]
As financial advisers, we help individuals and families make informed decisions about their money and long-term financial future. This can include guidance around budgeting, cash flow, investments, superannuation, retirement planning, [...]
Yes. Self-employed borrowers often require more detailed income assessment, and lender policies can vary significantly in this area. We help identify lenders whose criteria align with your business structure and [...]
Salary sacrificing can be an effective way to build retirement savings tax-efficiently, particularly for higher income earners. Concessional contributions are generally taxed at a lower rate than many personal marginal [...]
For most lenders a pre-approval is valid for 90 days, but it can often be extended by resupplying your income and expense information to your lender.
Depending on your loan, penalty fees could apply if you’re paying off your current mortgage early. But these may be offset by repayment savings when you switch home loans. We’ll [...]
Insurance is not mandatory, but if your financial plan depends on your income or ability to provide for others, having appropriate protection can reduce financial vulnerability. The purpose of insurance [...]
Deposit requirements vary between lenders and depend on factors such as the property's location, use, value, and the overall strength of the SMSF. In most cases, SMSF borrowers should expect [...]
Now is always a great time to shop around or check that you have the right loan for your needs. We’re a great starting point. It will depend on what interest [...]
Yes. Eligible Self Managed Super Funds (SMSFs) can purchase qualifying commercial property, either outright using available fund assets or through a Limited Recourse Borrowing Arrangement (LRBA), subject to superannuation and [...]
This is one of the most common and important retirement questions. The longevity of your savings depends on several factors, including: How much income you draw each year Investment returns [...]
Many buyers get swept up on a wave of rising property prices when they hand over their deposit in exchange for a floor plan. Historically, property is a consistent long-term [...]
SMSF commercial property loans may attract different interest rates and fees compared to standard residential lending. This is because SMSF lending involves specialised structures, additional compliance requirements, and a smaller [...]
Yes, there are several ways to structure asset and vehicle finance, including: standard loan agreements lease arrangements commercial hire purchase The right structure will depend on your goals, cashflow and [...]
No. Financial planning is about making the most of what you have, regardless of your income or net worth. Many people benefit most from advice earlier in life, when good [...]
