SMSF Loan Calculator: LRBA Feasibility
An SMSF loan through a Limited Recourse Borrowing Arrangement (LRBA) lets a self-managed super fund borrow to buy property. The fund must service the loan using rental income and super contributions alone. This calculator helps assess whether the fund's cash flow is sufficient and how much liquidity buffer remains.
Your details
Fund
Property
Rates, insurance, management, maintenance
Loan
SMSF lenders typically cap at 60-70% for residential
SMSF loans price above standard investment loans
Fund
| Property price | $900,000 |
| Deposit at 65% LVR | $315,000 |
| Purchase costs | $45,000 |
| Total cash required at settlement | $360,000 |
| Fund balance | $600,000 |
| Liquidity remaining | $240,000 |
| Gross rent 5.00% gross yield | $45,000 |
| Less property expenses | $9,000 |
| Net rent | $36,000 |
| Plus contributions | $55,000 |
| Plus other fund income | $8,000 |
| Total inflows | $99,000 |
| Loan repayments (P&I) | $54,181 |
| Interest-only alternative lower outflow, no principal reduction | $46,800 |
| SMSF admin, audit & advice | $4,500 |
| Total outflows | $58,681 |
| Annual surplus / (shortfall) | $40,319 |
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Who lends for an SMSF purchase?
Most major banks withdrew from SMSF lending, so limited recourse borrowing arrangements are now written mainly by non-bank and specialist lenders. Expect a rate above a standard investment loan, a maximum LVR commonly around 70% to 80% for residential and lower for commercial, and a liquidity requirement that the fund holds a cash buffer after settlement.
Because the loan is limited recourse, the lender can only take the single asset held in the bare trust if the fund defaults - the rest of the fund is out of reach. That confined security is what drives both the pricing and the tighter LVR, and it is why lenders look hard at whether contributions plus rent genuinely cover the repayment without the fund running dry.
Policy varies far more between SMSF lenders than it does in ordinary residential lending, particularly on acceptable property types, related-party leases and the minimum fund balance. Comparing a few is worth the effort. You can browse the SMSF lenders on our panel or post the scenario and let matching lenders respond.
Frequently asked questions
What is limited recourse?
If the fund defaults, the lender can only take the property held in the bare trust - not the fund's other assets. That protection is why SMSF loans price above standard investment loans and cap at lower LVRs.
How much liquidity should the fund keep?
There is no fixed rule, but auditors and lenders generally expect a buffer covering vacancy, repairs and any pension payments. A fund with almost no liquidity after settlement is a common audit concern.
General advice warning: This calculator provides general information only. It does not take into account your objectives, financial situation or needs, and it is not personal credit or financial advice.
Results are estimates based on the inputs and assumptions shown. Any interest rate used is an example and is not an offer of credit. Speak to a licensed credit representative before acting on these figures.