What did the August 2026 change actually ban?

From 10 August 2026, most lenders stopped writing new residential SMSF loans — new limited recourse borrowing arrangements over residential property. In the months before the deadline, thousands of trustees settled purchases with whatever lender would get the deal done, often at 8–9% or more with specialist lenders, high fees and restrictive terms.

Two things the change did not do: it did not ban refinancing of existing SMSF loans, and it did not close commercial (business real property) lending, which remains open for both purchase and refinance.

Is refinancing an existing SMSF loan still allowed?

Yes — and the market is actively built for it. Several lenders now run products that are refinance-only: one bank lender offers an SMSF product that exists solely to take over other lenders’ loans, and at least one non-bank restricts its residential SMSF product to properties acquired before the 10 August 2026 cut-off. The deadline-era borrower is literally a defined product category.

Streamlined “easy refinance” lanes sit alongside the standard ones: where your repayments have been on time for 6–12 months, some pathways skip the full serviceability reassessment — no income documents, assessed on conduct, often reusing your existing legal advice.

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Who can refinance an SMSF loan right now?

The broad rules of thumb across the panel, as at 23 August 2026:

  • LVR to 80% fits the standard and express lanes; a smaller panel lends to 85%, and to 90% in some cases.
  • Clean repayment history for 6–12 months opens the express lanes with the lightest paperwork.
  • Corporate trustees are required by most lenders; a small number accept individual trustees.
  • Dollar-for-dollar only. Cash-out is almost universally excluded — the new loan pays out the old one plus capitalised costs.
  • Credit issues don’t end the conversation — near-prime lanes consider paid defaults and discharged bankruptcy, at higher rates.

What rates are available after the ban?

Lowest indicative residential refinance rate on the panel

6.89%

As at 23 August 2026. Indicative only.

Highest LVR available on refinance

90%

A smaller panel lends above 80% LVR. Corporate trustee required.

Indicative residential ranges run from 6.89%–7.45% p.a. up to 80% LVR on standard and express pathways, with commercial refinance from 7.39%. Our monthly rates pillar publishes the full range table by pathway and LVR band — ranges only, no lender names — and the calculator applies them to your numbers.