Self-employed SMSF lending guide (October 2025)
- Jenny Fentino
- Oct 7
- 4 min read
Updated: Oct 20
Self-employed entrepreneurs are used to building their own path. Managing super should be no different. Our focus at Flexdoc is on self-employed (we call them self-made) borrowers, who can often times slip through the cracks when it comes to conventional lending.
While many others preach SMSF lending, we like to specialise in SMSF lending for the self-employed. That doesn't mean we can't assist PAYG borrowers. It just means that we like to lean in and do the harder work for self-employed borrowers to help them grow their wealth while they're growing their business.
This guide is for those who have already made that decision to set up an SMSF (self-managed super fund) or in the process of setting up their fund.
SMSF property investing
An SMSF gives business owners control over how their retirement savings are invested, and that often means turning super into something tangible, like property. Official sources estimate that around 15% of 644,000 existing SMSFs have some type of property exposure.
For some, that means buying a commercial property through their SMSF and paying rent back to their own fund. It’s a powerful way to turn a business expense into an investment that grows over time. Lenders generally will lend up to 80% but there needs to be strong contributions to cover repayments with buffers in place.
Others prefer residential property, using their SMSF as part of a broader wealth strategy to diversify assets and build long-term stability. Both options have merit, depending on personal goals and cash flow needs.
Again, appetite for residential lending inside an SMSF is up to a maximum of 80%. There is one lender we work with that will go up to 90%, but again the deal needs to service to go this high.
SMSF lending & property investing
One of the key mistakes people make is assuming that you can build within an SMSF. Contribution and renovations are typically not accepted due to the nature of Superannuation legislation.
Again, our expertise isn't on the superannuation area itself, we just work on the lending and helping fund the right property. You'll need to ask your accountant or financial planner about these rules.
But generally, the contract of purchase needs to be a single contract (as opposed to house and land builds, which are two part contracts). Completed houses, apartments (greater than 50sqm), town houses work best. For commercial, the property needs to be completed and either freehold or strata titled.
Metro areas are also better options, as some regional and remote areas might be on lender exclusion or restriction lists.
Self-employed SMSF lending
Lending is our focus. Today’s SMSF lending market is more flexible than ever. New lenders, mostly second tier non bank financial institutions, are innovating and coming up with new solutions.
The key issue with self-employed borrowers using an SMSF is around lumpy contributions. Lenders now recognise that self-employed professionals don’t always earn in steady monthly instalments. Some years are better than others. Many have lump-sum income events tied to projects or seasonal peaks.
New lenders have seen this as an opportunity and designed SMSF loan products to allow for this, with flexible assessment around contributions. Generally lenders will want to see a bare trust set up, a corporate trustee for the SMSF, one to two years of contribution track record and other cost disclosures such as insurance, legal, or accounting fees.
Acceptable income assessment documents include SMSF bank statements, superannuation rollover statements, ATO portal contribution statements and other evidence to show funds going into the funds. When the contributions are not adequate to service within the fund, lenders may opt also for a full personal assessment of each SMSF member to fund any shortfalls.
Work with professional advisors
Assessment gets more complicated if there are other liabilities within the fund.
Contribution history is key. Sometimes accountants and financial planners may advise their clients to use their cumulative contributions caps. Lenders are becoming better at understanding these during the assessment process, some more flexible with others.
We must stress though that these types of loans work best with the right team of advisors. A trusted financial planner ensures compliance and alignment with retirement goals. An experienced accountant structures contributions and deductions effectively. And a legal advisor helps set up the SMSF correctly to avoid costly mistakes.
Interested in knowing more about SMSF lending for self-employed professionals? Reach out to our expert team to schedule a call to learn more about self-employed SMSF lending.
Disclaimer: For full disclosure, we reiterate that the decision to set up an SMSF needs to be made by its members with advice and guidance from their qualified accountant or financial planner. We only assist on the lending, once the decision to set up an SMSF has already been made.
If you don't have a planner or accountant and is licensed to work in the SMSF space, we do have a network of professionals that can assist you if you would like an introduction.