If you’re planning to purchase a residential investment property through your Self Managed Super Fund (SMSF), the next few weeks could be your final opportunity to secure finance under the current rules.
The Australian Government has officially passed legislation that prohibits new residential property borrowing through SMSFs. Following Royal Assent on 26 June 2026, the new law comes into effect on 10 August 2026.
For many property investors, one detail is especially important.
The Contract Date Is What Matters
The legislation focuses on the date your purchase contract is exchanged, not your settlement date.
If you sign a contract under an SMSF to purchase a residential property before 10 August 2026, the borrowing arrangement can still proceed under the transitional provisions, even if settlement takes place later.
This provides certainty for buyers who are purchasing off the plan properties, where settlement commonly occurs well after finance is formally approved.
Off the Plan Purchases Remain Protected
Many off the plan developments have settlement periods ranging from 12 to 36 months. In most cases, lenders only complete the final loan assessment shortly before settlement.
Provided your SMSF entered into the purchase contract before 10 August 2026, the legislation allows eligible borrowing arrangements to continue.
However, lenders will still assess:
• Your SMSF’s financial position.
• Loan servicing capacity.
• Investment strategy.
• Lending policy requirements at the time of settlement.
Meeting the transitional rules does not automatically guarantee loan approval.
Commercial Property Borrowing Is Unchanged
The current legislation only affects new residential property borrowing through SMSFs.
Borrowing to purchase eligible commercial property through an SMSF remains available under the existing lending framework.
Time Is Running Out
If you’re considering buying residential property through your SMSF and have not yet exchanged contracts, now is the time to act.
Speaking with an experienced mortgage broker can help you understand your borrowing options, assess lender requirements, and determine whether your purchase can proceed before the legislation takes effect.
Speak With A2Z Finance and Mortgage
At A2Z Finance and Mortgage, we help clients navigate complex lending scenarios, including SMSF lending, investment property finance, and tailored home loan solutions. With access to a wide range of lenders and years of industry experience, our team can help you understand your options before the new rules begin.
Contact our team today to discuss your SMSF lending strategy and whether acting before 10 August 2026 is the right decision for your circumstances.
