Why banks won't fund this
Many SMSF borrowers want to refinance because their current bank becomes difficult. Banks often impose conditions on SMSF loans that are overly restrictive—requiring quarterly valuations, limiting leverage, or refusing to lend on additional properties. When the trustee asks to refinance or extend, the bank demands a fresh assessment and updates, causing delays.
Other SMSFs are stuck with older loans at high rates (8–10% p.a.) because they're trapped—the current lender has poor service, or refinancing fees seem too high. Banks don't compete aggressively for existing SMSF borrowers and often use their position to extract higher fees.
How specialist lenders look at this differently
Specialist lenders assess deals using a different framework:
- Refinancing is faster because the property exists. Valuation is quick, title is clear, and the lender just needs to verify equity and SMSF compliance.
- Competitive rates and terms. Private lenders actively compete for SMSF refinancing business, so you often get better rates and more flexibility than your current lender.
- Consolidation and restructuring is possible. Want to combine multiple loans, release equity, or switch properties? Specialist SMSF lenders can restructure your borrowings in ways banks won't.
Ready to explore your options?
Tell us about your situation and we'll show you what lenders can offer.
Describe Your SituationWhat a typical deal looks like
Illustrative example — not a real caseAn SMSF owns two residential investment properties: one mortgaged at 6.2% p.a. and another at 6.8% p.a. Both loans are with a major bank that has become unhelpful—they won't release equity without a full refinancing process, and the SMSF trustee is frustrated with quarterly valuation demands.
A private lender proposes consolidating both properties under one facility at 5.10% p.a. for 20 years. The SMSF trustee approves the settlement occurs in 11 days. The new loan is based on the property values and SMSF equity—no unnecessary conditions. Annual interest savings are approximately $22K. The SMSF can also access $80K in released equity if needed for additional investment.
What lenders want to see
For this scenario, lenders focus on:
- Current loan documents — to understand existing terms and any early exit requirements.
- Property title and valuations — for each property being refinanced.
- SMSF deed and financials — current fund structure and asset position.
- Statement of SMSF liabilities — existing loans, interest rates, monthly payments.
- Trustees' details — names, roles, contact information for each trustee.
- Rationale for refinancing — why you're moving (better rates, consolidation, equity access, etc.).
When this might not work
Specialist lending has limits:
- Current lender has a strong claim on property — unusual security arrangements may complicate refinancing.
- SMSF is in breach of lending covenants — if the current lender has flagged a breach, new lenders may be cautious.
- Property values have dropped since original purchase — negative equity prevents refinancing.
- SMSF has fallen into arrears on current loan — this is a major red flag and lenders will decline.
- SMSF is subject to ATO investigation — compliance issues can block refinancing.
Our panel includes specialist lenders who actively fund this scenario.
- $100K–$20M
- From 4.99% p.a. onwards
- 0.5–2% lower than existing bank rate
- 10–14 days
- Yes — combine multiple properties
- Yes — up to LVR limits
- Negotiable or covered by lender
- 5–30 years available
Describe your situation and we'll match you with the best options.
How to get funding — Step by step
The process is straightforward:
- Step 1: Describe your deal. Tell us the property type, location, value, and what you need the funds for.
- Step 2: Get matched. Our AI matches your situation against specialist lenders on our panel.
- Step 3: Move forward. Contact your matched lenders directly. Settlement can happen within days.