LRBA loans at competitive SMSF rates
Looking to expand your portfolio? Want more flexibility and value from your SMSF property investments? Talk to Homestar Finance, the SMSF loan specialists.
We help property investors get a better deal – with market leading rates, personalised service and loans packed with flexible features.
We offer competitive rates to suit eligible refinancing and purchasing needs.
No application fee, no monthly fee, no offset facility fee, and no annual fee (refinance special).
Spend less time on admin and paperwork and maximise the fund’s borrowing potential.
All wrapped up in just a few days with the help of your dedicated loan specialist.
Additional 0.60% interest rate applies.
Free offset facility.
Check out our rates and consider your options.
Rates |
||
|---|---|---|
| Loan-to-Value Ratio | Interest Rate | Comparison Rate |
| Up to 70% LVR | 6.93% p.a.1 | 7.02% p.a.2 |
| Up to 80% LVR | 7.03% p.a.3 | 7.19% p.a.2 |
| Up to 70% LVR | 7.33% p.a.1 | 7.42% p.a.2 |
| Up to 80% LVR | 7.43% p.a.3 | 7.51% p.a.2 |
| Fixed (1 year) - 0-70% LVR | 7.83% p.a.1 | 7.44% p.a.2 |
| Fixed (2 year) - 0-70% LVR | 7.83% p.a.1 | 7.53% p.a.2 |
| Fixed (3 year) - 0-70% LVR | 7.83% p.a.1 | 7.61% p.a.2 |
| Fixed (4 year) - 0-70% LVR | 7.93% p.a.1 | 7.73% p.a.2 |
| Fixed (5 year) - 0-70% LVR | 7.93% p.a.1 | 7.80% p.a.2 |
| Fixed (1 year) - 70-80% LVR | 7.93% p.a.3 | 7.62% p.a.2 |
| Fixed (2 year) - 70-80% LVR | 7.93% p.a.3 | 7.69% p.a.2 |
| Fixed (3 year) - 70-80% LVR | 7.93% p.a.3 | 7.77% p.a.2 |
| Fixed (4 year) - 70-80% LVR | 8.03% p.a.3 | 7.87% p.a.2 |
| Fixed (5 year) - 70-80% LVR | 8.03% p.a.3 | 7.94% p.a.2 |
| Fixed (1 year) - 0-70% LVR | 8.23% p.a.1 | 7.49% p.a.2 |
| Fixed (2 year) - 0-70% LVR | 8.23% p.a.1 | 7.62% p.a.2 |
| Fixed (3 year) - 0-70% LVR | 8.23% p.a.1 | 7.73% p.a.2 |
| Fixed (4 year) - 0-70% LVR | 8.33% p.a.1 | 7.88% p.a.2 |
| Fixed (5 year) - 0-70% LVR | 8.33% p.a.1 | 7.99% p.a.2 |
| Fixed (1 year) - 70-75% LVR | 8.33% p.a.3 | 7.59% p.a.2 |
| Fixed (2 year) - 70-75% LVR | 8.33% p.a.3 | 7.72% p.a.2 |
| Fixed (3 year) - 70-75% LVR | 8.33% p.a.3 | 7.83% p.a.2 |
| Fixed (4 year) - 70-75% LVR | 8.43% p.a.3 | 7.98% p.a.2 |
| Fixed (5 year) - 70-75% LVR | 8.43% p.a.3 | 8.09% p.a.2 |
1 LVR means ‘Loan to Value Ratio’. It is the amount of your loan divided by the valuation of your property, calculated as a percentage. For example, if you apply for a loan of $400,000, which will be secured by a property valued at $500,000, your LVR is 80%.
2 Rates shown apply to new eligible Owner Occupieda or Investment home loansb only, loan limits may apply depending on your product (refer to the product page) and at least one applicant is on PAYG employment. Rates are subject to change without notice. Existing borrowers may have different interest rates which are dependent on the rate offered to the borrower at the date when a home loan settled and any reductions or increases the lender decided to make on the existing loan over time. Accordingly, there is not one standard variable rate that applies to all Homestar home loans and existing customers can confirm their current rate(s) by logging in to our online Internet Access portal or by contacting customer service. Terms, conditions, and eligibility criteria apply.
^ Comparison rates are based on a $150,000 loan amount over 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Fees |
Variable | Fixed |
|---|---|---|
| Lender's Annual Facility Fee | $0 | $395 |
| Third Party Costs | $5954 | $5954 |
| Valuation Fee - Residential property (Any additional expenses incurred due to travel or properties greater than $1m in value may incur additional fee which will be charged at cost) |
$244.20 | $244.20 |
| Valuation Fee - Commercial property | At cost approx. $2500 | At cost approx. $2500 |
| Discharge Administration Fee ($0 if loan goes full term) | $2,2005 | $2,2005 |
| Loan Account Variation Fee | $250(i) | $250(i) |
| Loan Facility Variation Fee | $450(ii) | $450(ii) |
| Fixed Rate Lock Fee (Optional) | $0 | $495 |
Other fees and charges may apply.
Terms, conditions and eligibility criteria apply to all our loan products and features. Fees, charges and disbursements are payable. Final approval is subject to credit assessment. Information valid as at 18th April 2024 which is subject to change without notice. Please consider if the product is appropriate for your individual circumstances. If you need assistance or have any questions about a product or feature and its suitability, please contact our Loan Specialists.
You will need to meet the following criteria:
For refinance applications – these additional eligibility criteria apply:
For purchase applications – these additional eligibility criteria apply:
IMPORTANT: We recommend you obtain independent legal and financial advice on compliance with the Superannuation Industry (Supervision) Act 1993 and the considerations regarding property investment through an SMSF.
A self-managed super fund (SMSF) loan, also known as a Limited Recourse Borrowing Arrangement (LRBA), is a loan designed for people who want to buy a residential or commercial investment property through their self-managed super fund. The loan is made to a company or a trust with a corporate trustee.
An SMSF loan allows the trustees of the SMSF to borrow money to buy an eligible investment property as part of the SMSF portfolio. This is known as a Limited Recourse Borrowing Arrangement (LRBA). An eligible property purchased on or after the 10th August 2026, needs to meet the Business Real Property definition under applicable superannuation legislation. The property needs to be used wholly and exclusively for business purposes for the term of the loan.
Once purchased, the property is held in a separate custodian trust (bare trust) and any income generated is re-invested into the fund to repay the SMSF loan. When the loan is repaid, the SMSF acquires the deed title. The diagram above shows how this works.
Most lenders apply a ‘liquidity test’ on SMSF loans. This test requires that a minimum of between 10 and 20 per cent liquid assets (cash and shares) or a fixed cash amount must remain in the SMSF after the investment property is purchased. This can often restrict how much an SMSF can borrow.
At Homestar Finance, we do NOT apply a liquidity test. Instead, you can borrow the total amount you need without any liquidity restrictions – saving you time and extra paperwork.
The SMSF offset facility (sub-account) is specifically designed for transactions related to your Self Managed Super Fund (SMSF) and must comply with the Superannuation Industry (Supervision) Act 1993 (SIS Act).
Permitted uses of the SMSF offset facility include:
It’s important to note that personal use, business use outside the SMSF, and early withdrawals before meeting a condition of release are strictly prohibited. All transactions must benefit the SMSF’s investment strategy and adhere to trustee obligations.
SMSF offset facility transfers not allowed under the Superannuation Industry (Supervision) Act 1993 (SIS Act) are:
SMSF trustees are required to comply with several key obligations when using an SMSF Offset Facility, as governed by the Superannuation Industry (Supervision) Act (SIS Act):
To apply, you need to have an existing self-managed super fund set up as a corporate trustee or be in the process of creating one.
The ATO has a set of regulations that govern how you can borrow under a Limited Recourse Borrowing Arrangement. You must establish a bare trust to hold the property title for an SMSF loan.
IMPORTANT: We recommend you obtain independent legal and financial advice on compliance with the Superannuation Industry (Supervision) Act 1993 and the considerations regarding property investment through an SMSF.
For great rates, great savings and great service, Homestar Finance has you covered. Fill in your details to connect with a dedicated lending specialist.
Australians deserve a better deal. That’s why we’ve been challenging the market and rewriting the rulebook, since 2004.
By listening and understanding what’s important to property owners, we’ve developed a customer focused approach that helps thousands of property owners feel in control and save money every day.
Great customer service and competitive rates
Amazing service from the retention team, they were very efficient, fair and straight to the point. From the moment I first contacted them, to the last step of getting my rate updates in the system, everything was done and dusted within 10 days. I had a lot of queries, so I’m sure they would have done it in less than a week! Continue Reading
Cheap and cheerful home loans
We have been with Homestar for over 5 years now and we are very satisfied with their service. Rates are fantastic too. Some of the cheapest on the market for a full featured mortgage.
We are renovating and have had to top up our loan a few times and Homestar has always been easy to deal with. Continue Reading
Great Product and Customer Service
My dealing with Homestar has been exceptional from initial enquiry through to settlement whilst refinancing my SMSF property. By far the sharpest rate in the market with prompt and clear communication the entire way. Highly recommend this lender and SMSF mortgage product. Continue Reading
John and Michel were fantastic- the entire process was smooth and both were very responsive
Beats any bank hands down. Their Service was top notch and thorough and helped me navigate my way around what could have been a challenging process give mine was spread between a Top Up and an investment loan. Continue Reading
Great customer service
I’ve been a Homestar customer for a few years now, and recently requested a switch to a more competitive product. I’ve been impressed by the quality of the customer service (especially Regina from the Retentions team), and have had friendly & professional responses throughout the process. Importantly, the turnaround time has been super quick, with minimal time spent on hold / waiting for email responses. Continue Reading
SMSF is a common abbreviation for Self–managed Superannuation Fund or Self-managed Super Fund.
As the name suggests, a Self-managed superannuation fund is a super fund, but unlike a traditional super fund this type of fund puts you in control of your superannuation. An SMSF allows up to 6 members who have control over how the funds are invested.
For purchases:
For refinances:
In addition to above, for Homestar Finance SMSF loan applications the property must be in a completed state, meaning no real estate under construction can be purchased with an SMSF.
Your SMSF can invest in new or established residential or commercial real estate. There are some restrictions, for instance with Homestar Finance the property must be in a completed state, meaning no real estate under construction can be purchased with an SMSF.
No. Homestar Finance’s Star Blue SMSF Loan do not cover properties under construction or vacant land. And because the SMSF loan must be used for an established dwelling that is producing income, you cannot live in the property.
Yes. We just need a letter from your accountant that confirms regular contributions, advises us about the ongoing costs of the SMSF, and confirms that contributions from your regular super fund have transitioned across to your SMSF.
If you are buying property with your SMSF fund, you must ensure that the Bare Trust is noted as the purchaser.
A Limited Recourse Borrowing Arrangement (LRBA) is a legal structure that allows an Australian self-managed superannuation fund (SMSF) to borrow money to acquire a single asset, with the lender’s recourse limited to that asset if the fund defaults.
If you took out an SMSF loan to purchase the SMSF property, you are not permitted to use additional loan funding to make improvements. Renovating an SMSF property is a complex issue, and it is always recommended that you seek professional advice before making any significant changes to your SMSF investment.
Find out more in our blog article Renovating SMSF Property: Can You Make Big Improvements.
Homestar Finance will only lend to an SMSF with a corporate trustee. For SMSF loan borrowing purposes, the trustee of the SMSF cannot be the same as the trustee of the security/property Bare Trust.
Find out more in our blog article Understanding How Members and Trustees Work in Self Managed Super Funds (SMSF).
At Homestar Finance, we don’t apply a liquidity test. So, you can borrow the total amount needed without liquidity restrictions.
Find out more in our blog article How Much Super Do I Need to Buy an Investment Property?
SMSF property cannot be used for personal use or rented out to anyone related to you. There are various other regulations when it comes to owning residential or commercial property through your SMSF. Any violations could lead to significant financial, civil or criminal penalties.
1 Rates shown apply to new eligible SMSF home loans only, up to 70% LVR, loan amount minimum of $150,000 up to max of $3,500,000. Rates are subject to change without notice. Existing borrowers may have different interest rates which are dependent on the rate offered to the borrower at the date when a home loan settled and any reductions or increases the lender decided to make on the existing loan over time. Accordingly, there is not one standard variable rate that applies to all Homestar home loans and existing customers can confirm their current rate(s) by logging in to our online Internet Access portal or by contacting customer service. Terms, conditions, and eligibility criteria apply.
2 Comparison rates are based on a $150,000 loan amount over 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
3 Rates shown apply to eligible new refinance applications for SMSF residential home loans only, with a minimum loan amount of $150,000, a maximum loan amount of $3,500,000 and a maximum LVR of 80%. Eligible properties are limited to residential properties that were already held by the SMSF prior to 10 August 2026. Existing borrowers may have different interest rates which are dependent on the rate offered to the borrower at the date when a home loan settled and any reductions or increases the lender decided to make on the existing loan over time. Accordingly, there is not one standard variable rate that applies to all Homestar home loans and existing customers can confirm their current rate(s) by logging in to our online Internet Access portal or by contacting customer service. Terms, conditions, and eligibility criteria apply.
4Third party costs reasonably incurred in providing this service may include legal, custodian, mortgage management, land registry and electronic processing fees. These costs may vary and are payable by the applicant.
5Discharge fee is waived if loan reaches full term as per the loan agreement.
Other fees and charges may apply.
DISCLAIMER: Terms, conditions and eligibility criteria apply to all our loan products and features. Fees, charges and disbursements are payable. Final approval is subject to credit assessment. Information valid as at 11th May 2026 which is subject to change without notice. Please consider if the product is appropriate for your individual circumstances. If you need assistance or have any questions about a product or feature and its suitability, please contact our Loan Specialists.
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