SMSF Loan Refinancing Australia

Yes, you can refinance an SMSF property loan to a new lender. The existing LRBA structure must be maintained and the bare trust deed updated to reflect the new lender. The property title stays in the name of the bare trustee throughout the process. Not all lenders offer SMSF refinancing, so a specialist pathway is usually required.

The bare trust remains in place but the bare trust deed needs to be updated to reference the new lender and new loan facility. The property title stays in the name of the bare trustee for the benefit of the SMSF. Your solicitor or conveyancer will handle the deed update as part of the refinance settlement process.

Most SMSF lenders cap refinance LVR at 70% to 80% for residential property and 65% to 75% for commercial property. Some lenders may offer slightly higher LVRs depending on the property type, location, rental income and fund position. The LVR available on a refinance is usually similar to what would be offered on a new SMSF purchase.

Common documents include the SMSF trust deed, bare trust deed, corporate trustee details, current loan statements, recent SMSF financial statements and tax returns, member contribution statements, the property valuation, lease agreements for investment properties, and details of any related-party lease if the property is leased back to a member's business.

SMSF refinancing typically takes 4 to 8 weeks from application to settlement. The process can take longer than a standard residential refinance because the lender needs to review the SMSF structure, bare trust, fund financials and compliance position in addition to the property and borrower details.

Yes, SMSF commercial property loans can be refinanced to a new lender. The lender will review the lease, tenant quality, rental income, fund position and LRBA compliance. If the property is leased back to a related party such as your own business, the lease must be at market rate and properly documented.

Yes, SMSF refinancing usually involves discharge fees from the outgoing lender, application or establishment fees with the new lender, bare trust deed amendment costs, legal and conveyancing fees, valuation fees and potentially break costs if the existing loan is on a fixed rate. These costs should be weighed against the long-term savings from a lower rate or better terms.

Yes, you can switch between any SMSF lenders as long as the new lender accepts the existing LRBA structure and the bare trust details are updated correctly. Some borrowers move from a major bank to a non-bank for a better rate, while others move in the opposite direction if they want a longer loan term or different product features.