Yes, a self-managed super fund (SMSF) can borrow to buy property, using a limited recourse borrowing arrangement (LRBA). SMSF loans are harder to get than a normal home loan: most of the big banks stopped offering them, so they now come mainly from a smaller group of lenders, with tighter terms.

In this video, the McKern Finance team explains how lenders assess SMSF loans: in their experience, up to about 80% of the property value for residential and 60–70% for commercial (this varies by lender), with repayments serviced from the property's rent plus the fund's own income. They also cover why more SMSF trustees buy commercial property, where returns tend to justify the extra costs of setting up and running the fund. Remember that property held in an SMSF must meet the sole purpose test, so you can't live in it or rent a residential property to family.

In this video

00:00 Are loans harder to get for Self-Managed Super Funds?

1:02 Do people buy residential or commercial properties?

General information only, not personal advice.