SMSF refinance loans

Refinancing your SMSF loan can provide several financial advantages, including:
- Lower interest rates – reduce your loan repayments and maximise SMSF savings
- Lower fees – minimise ongoing costs that impact your fund’s growth
- More suitable loan terms – extend your loan term, improve repayment flexibility and loan conditions
- Access to new features – leverage loan features like an offset account to reduce the amount of interest payable
- Access to specialised SMSF lenders – receive customer support tailored to SMSF borrowers

By refinancing, you can optimise your SMSF’s financial position while ensuring compliance with superannuation regulations.

To be eligible for refinancing, your SMSF loan must meet specific lender criteria, including:
- Compliance with SMSF lending rules – the loan must adhere to Limited Recourse Borrowing Arrangements (LRBAs) and ATO regulations
- Loan-to-Value Ratio (LVR) requirements – you typically need an LVR 80% or less, meaning your SMSF must have sufficient equity in the property (at least 20% equity)
- Strong SMSF financials – the SMSF needs to demonstrate steady cash flow and rental income to meet repayment obligations

A Loan Consultant at Yard can assess your SMSF’s eligibility and recommend suitable options.

While refinancing could lead to long-term savings, there are upfront costs to consider, including:
- Loan application fees – charged by the new lender for processing your refinance application
- Property valuation fees – required to determine the current market value of your SMSF property
- Legal and settlement costs – covers the preparation of loan documentation, compliance checks, and settlement processing
- Discharge fees – some lenders charge a fee to exit your existing SMSF loan so you should refer to your existing loan agreement to clarify the fees that would apply
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It’s important to compare these costs against potential savings on interest rates and fees to ensure refinancing is financially beneficial for your SMSF.

Yes. You can refinance an existing SMSF loan with a different lender, for both residential and commercial property. Existing residential SMSF loans can still be refinanced, even though SMSFs can no longer borrow to buy residential property. Refinancing may give your fund access to a lower interest rate, lower fees or loan features that better suit its strategy. Yard is a specialist SMSF lender that refinances both residential and commercial SMSF loans. Yard SMSF loans include unlimited additional repayments and an optional 100% offset facility. A dedicated Yard Loan Consultant manages your refinance from application to settlement.

Switching lenders may be worth considering if you want to:
- Reduce your rate: Access a lower interest rate or better loan terms
- Cut costs: Reduce fees and ongoing charges
- Add flexibility: Gain features such as additional repayments or an offset account
- Work with a specialist: Deal with a lender that has specialist SMSF lending experience

Speak with a Yard Loan Consultant about refinancing your SMSF loan. All loans are subject to Yard's credit criteria.

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You can refinance a residential or commercial SMSF property with Yard.
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Residential SMSF
‍- Standard residential investment house, unit/apartment or townhouse.
Some exclusions include:
- Vacant Land
- Construction
- Purchase or refinance of owner-occupied properties
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Commercial SMSF
‍Examples of acceptable commercial property include:
- Strata offices and showrooms
- Retail outlets (e.g. shops, restaurants)
- Industrial factories and warehouses
- Medical suites
- Childcare centres, and others

You can review Yard's commercial SMSF loan product and features here.

Refinancing can play a crucial role in your SMSF’s financial planning by:
- Reducing costs – lower loan repayments free up more funds for other superannuation investments
- Enhancing cash flow – improved loan terms can provide greater flexibility for fund management
- Aligning with long-term goals – refinancing ensures your loan structure supports your SMSF’s retirement strategy
- Compliance considerations – any refinance must adhere to SMSF borrowing rules, ensuring it continues to serve the sole purpose test of benefiting members' retirement savings
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Before refinancing, it's advisable to consult with an SMSF financial advisor to ensure the new loan structure aligns with your SMSF’s overall investment objectives.

Principal & Interest and Interest Only options are available. You can make unlimited additional repayments and use our optional 100% offset facility feature to save on interest.

Yes, Yard's SMSF loans must be supported by personal guarantee(s) required from all members/beneficiaries of the SMSF.