SMSF lending designed to support you
Expand your offering with a smoother, end-to-end digital process and clear lending frameworks. So you can deliver more value to customers.
You Asked. We acted.
Based on broker feedback, AMP Bank has rolled out 5 SMSF policy improvements and rolled out pre-approval, designed to reduce friction, improve certainty and help you submit more SMSF deals with confidence — live now.
We have made the following SMSF improvements
- Simplified liquidity test Reduced from 10% of total SMSF assets to 5% of the total loan amount
- Lower minimum loan size Reduced from $300,000 to $200,000
- Lower minimum SMSF fund size (net asset test) Reduced from $300,000 to $250,000.
- Minimum SMSF expense assumption reduced. SMSF expenses are now assessed more accurately based on typical fund costs
- Expanded acceptable security locations (Perth metro) Selected Zone 3 Perth metropolitan postcodes now accepted (subject to credit manager approval)
- Pre approvals now available
Competitive, transparent rates
Makes it easy for customers to understand what they’re paying, with a clear rate that supports their long‑term planning.
Offset deposit account
Lowers the interest customers pay by keeping their SMSF money beside the loan, while still allowing them to use it for approved SMSF costs.
P&I and Interest-only options (up to 5 years)
Helps your customers keep repayments lower at the start, so their SMSF has more cash available to manage fund costs.
Make your job easier
Expert support
An experienced team guiding you through every step of the SMSF lending journey.
Clear credit policy
Quickly see who’s eligible and what’s needed, without the back and forth.
Strong compliance framework
Feel confident you’re doing things by the books, with clear guardrails at each step.
Loan snapshot
- Loan term: Up to 30 years
- Repayments: Principal & Interest, with Interest‑Only available (subject to policy)
- Purpose: Purchase or refinance of residential investment property under an LRBA
- Borrower: SMSF trustee (corporate trustee required)
- Property use: Investment only (no owner‑occupation or personal use)
- Offset account: Available (subject to SMSF rules)
- Pre‑approvals: Now available for eligible SMSF borrowers
- Minimum loan amount: From $200,000
Clear SMSF LVR limits apply
- Residential investment property:
- Up to 80% LVR, subject to policy and security location
Who this loan is for (SMSF)
- SMSFs looking to invest in residential property within super
- Trustees seeking long‑term investment growth inside their fund
- SMSFs wanting cash‑flow flexibility, including Interest‑Only options
- Trustees who value greater certainty, with SMSF pre‑approvals now supported
- Experienced investors familiar with SMSF borrowing and LRBA structures
Key SMSF requirements apply
- Corporate trustee structure required
- Investment must meet sole‑purpose and arm’s‑length rules
- Simplified liquidity test:
- Minimum post‑settlement liquidity of 5% of the loan amount
- Minimum SMSF fund size:
- Net assets from $250,000
Find out more about SMSF lending
Check out our training hub
Explore our training resources to support you to lodge your customers SMSF application in Loanapp.
Visit our training hubCase Study 1: Using an SMSF Loan to Support Long‑Term Retirement Planning
Customer Profile
Name: Annie, 52
Annie owns a local accounting practice and has built a self‑managed super fund (SMSF) balance of around $1 million. With retirement targeted for age 65, she is focused on strengthening the long‑term stability of her super through asset diversification.
Annie’s broader goal is to generate reliable income in retirement, while ensuring her SMSF structure supports future succession planning for her daughter.
The Scenario
Annie’s SMSF purchases a residential investment property valued at $1.2 million using a variable interest‑only SMSF loan.
- SMSF contribution: $240,000
- SMSF loan: $960,000 (80% loan‑to‑value ratio)
- SMSF liquid assets (after settlement): $50,000
The property is leased to an unrelated third‑party tenant and generates around $70,000 per year in gross rental income, which supports loan repayments and ongoing SMSF expenses.
Annie chooses a variable interest‑only loan structure to help preserve cash flow in the early years. At an illustrative interest rate of approximately 6.9% p.a. (rates are subject to change), interest‑only repayments are around $5,500 per month.
As Annie approaches retirement, her SMSF can review its options, including:
- moving to principal and interest repayments,
- refinancing (subject to policy and market conditions), or
- selling the property to realise capital gains and improve liquidity.
Liquidity Assessment
As part of the loan assessment, Annie’s SMSF must demonstrate it can meet loan repayments and fund expenses without relying solely on rental income.
The assessment considers the SMSF’s liquid assets, such as cash and readily accessible investments, to ensure the fund can continue to meet its obligations if:
- interest rates increase,
- rental income is disrupted, or
- unexpected expenses arise.
Annie’s SMSF maintains a $50,000 liquidity buffer after settlement, exceeding the required 5% ($48,000) and supporting long-term loan sustainability.
Why an Interest‑Only SMSF Loan
For Annie, an interest‑only structure helps to:
- manage cash flow in the short to medium term,
- provide flexibility as retirement approaches, and
- support longer‑term retirement and estate planning objectives.
Important Considerations
- Everything must be done on normal commercial terms (no mates rates) and priced the same as you would with an unrelated person.
- Arm’s length transaction. SMSF specialist advice required.
- The property cannot be used for private purposes while held in the SMSF.
- Variable interest rates mean repayments can change over time.
- Borrowing within an SMSF adds complexity and risk, and requires careful planning.
- Professional advice is essential to ensure compliance with superannuation and lending requirements.
Key Takeaway
A variable interest‑only SMSF loan can support diversification and cash flow management for investors like Annie, while working toward long‑term retirement goals. As with any SMSF borrowing strategy, careful consideration of liquidity, risk and compliance is essential.
Case Study 2: Refinancing an SMSF Loan as Retirement Approaches
Customer Profile
Hughie, 60
Hughie is approaching retirement and has been investing through his SMSF for several years. He previously used an SMSF loan to acquire a residential investment property and has consistently reduced his debt over time.
With retirement nearing, Hughie’s focus is on freeing up cash flow within his SMSF and maintaining a simple, compliant structure.
The Scenario
Hughie’s SMSF holds a residential investment property valued at approximately $1.0 million. Through regular repayments and surplus cash flow, the existing loan balance has reduced significantly.
Hughie refinances the $205,000 balance, meeting AMP's minimum SMSF loan amount requirement of $200,000.
- Refinanced loan amount: $205,000
- Approximate LVR: ~20%
- Purpose: Refinance of an existing SMSF loan only
The refinance lowers ongoing repayments and frees up cash flow within the SMSF, helping Hughie prepare for retirement while retaining the investment property.
Liquidity Position
Following refinance, Hughie’s SMSF holds approximately $120,000 in liquid assets, which is significantly above AMP’s minimum liquidity requirement of 5% of the loan amount.
This provides confidence the SMSF can comfortably meet loan repayments and ongoing expenses as Hughie transitions into retirement.
No Cash‑Out
Hughie’s SMSF does not require any cash‑out as part of the refinance.
The reduction in repayments already improves SMSF cash flow, and the fund holds sufficient liquidity for its needs and Hughie’s future retirement needs. In any case, SMSF refinancing must comply with sections 67A and 67B of the Superannuation Industry (Supervision) Act 1993, which prohibit releasing funds to the SMSF for other purposes.
Key Takeaway
Refinancing an SMSF loan at a low LVR can help investors like Hughie reduce debt, improve SMSF cash flow and simplify their SMSF as retirement approaches, while remaining compliant with superannuation borrowing rules.
SMSF Loan documents
Other SMSF products for your customers
Important information
All information on this website is subject to change without notice. It's important your customers consider their particular circumstances and read the relevant Product Disclosure Statement and Target Market Determination or Terms and Conditions before deciding what's right for them.
A target market determination for these products is available at distributor.amp.com.au/tmd
This information hasn't taken their circumstances into account. The credit provider and product issuer is AMP Bank Limited ABN 15 081 596 009, AFSL No 234517, Australian credit licence 234517.