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
This is a grant available to Australian citizens or permanent residents who wish to buy or build their first home, which will be their principal place of residence within 12 [...]
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 [...]
The general appeal of a fixed rate is the rate of interest paid on a loan doesn’t change for a set period. That means when the lender puts its interest [...]
Superannuation is generally preserved until you reach your preservation age and meet a condition of release, such as retirement. There are limited circumstances where early access may be permitted, including [...]
The appropriate amount of life insurance depends on your individual circumstances. Factors typically considered include: Outstanding debts (such as a mortgage) Ongoing living expenses Income replacement needs Children’s education costs [...]
If you’re self-employed and want to apply for a home loan, you will need to provide evidence of your business’ financial position. In addition to the regular personal financial information [...]
The cost of advice depends on the complexity of your situation and the type of advice provided. All fees and any commissions (where applicable) will be clearly disclosed so you [...]
All investments carry some level of risk, but risk can be managed — not eliminated. Ways to manage risk include: Diversifying across asset classes Avoiding concentration in a single investment [...]
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 [...]
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 [...]
One of the biggest advantages of buying off the plan is time. Unlike traditional property purchases with relatively short windows to round up the total finance, you will have at [...]
The tax treatment of premiums depends on the type of cover and how it is structured. For example: Income protection premiums are often tax deductible when held outside superannuation. Life, [...]
Banks can only offer their own products and policies. A broker provides access to multiple lenders, helping you compare options and structure a loan that aligns with your goals and [...]
If you’re having a hard time saving for your first home, your family can help you with a cash gift to put towards your deposit A gifted deposit home loan [...]
