Inside the SMSF trillion-dollar moment

With younger investors driving growth and refinancing opportunities emerging, non-bank lenders are positioning to capture a maturing SMSF borrowing market

A FEW years from now, people will look back on the moment Australia’s self-managed super funds assets crossed the $1 trillion mark and wonder whether it was simply a milestone or the start of a structural shift in how Australians invest for retirement. Already the signs are clear: trustees are embracing property like never before, using their super not just to save but to build – income, independence and, in many cases, commercial futures tied to their own businesses. This evolution isn’t driven by one factor alone. Younger investors are entering the SMSF space in record numbers, drawn by the transparency and control it offers. Seasoned trustees are doubling down on tangible assets amid market volatility. And brokers are waking up to the refinancing potential of high-rate legacy loans. At the same

The profile of SMSF trustees is changing dramatically, with younger investors flocking to the self-directed model. “According to the ATO, Gen X and millennials accounted for over 79% of newly established SMSFs as of July 2024, with 10% coming from trustees aged just 25 to 34,” says Siobhan Williams, head of mortgages at Pepper Money. This demographic shift brings with it new perspectives and investment priorities. These younger trustees are more tech-savvy and hands-on with their investments than previous generations of SMSF holders.

Risk management remains top of mind for many SMSF investors as they consider their asset allocation strategies. “SMSF investors are likely to continue diversifying their portfolios across more stable asset classes to minimise risk exposure,” says Heinnen. “We expect direct or indirect investments in real estate to play a crucial role in this diversification strategy.” For many investors, property through an SMSF represents a way to insulate investments from personal financial pressures. “Pleasingly for SMSF members, given an SMSF and its associated liabilities are siloed from a borrower's general expenses and liabilities in their own name, cost of living pressures and higher interest rates are less likely to impact an SMSF's borrowing power, resulting in a more set-and-forget investment strategy,” Bannister says. This separation of personal and SMSF finances creates a buffer that many find attractive in uncertain economic times.

$1,000,000

Total funds invested in SMSFs hitting highs

“What's driving this? It's a mix of wanting more control and transparency; seeing property as a stable, income-generating asset; and a growing entrepreneurial mindset, particularly among those buying commercial property for their own business use,” Williams explains. The growth in superannuation balances has contributed to this trend, providing younger investors with the capital needed to enter the property market through their SMSFs. “These trustees are digitally savvy, self-directed and actively looking for lending solutions that align with their investment strategies,” Williams adds. “Property, particularly commercial, offers both income and business utility, making it highly appealing.”

Despite occasional market volatility, real estate continues to attract SMSF trustees looking for tangible assets with reliable income streams. “We continue to see a notable cohort of SMSF trustees increasing their allocation towards real estate assets,” says Cory Bannister, senior vice president and chief lending officer at La Trobe Financial. “Several factors are driving this change: volatility in equity markets, lower returns from traditional and cash investments, and a growing desire for tangible assets that generate consistent rental income.” The appeal of property extends beyond simple diversification. Bannister notes that SMSF trustees are “responding to longer-term demographic and population trends, seeking to build more defensive, income-focused portfolios as they plan for retirement”.

Homeownership is a fundamental part of the Australian dream. However, the path can be challenging, especially when traditional lending can be strict and unforgiving. We’re here to change that. Since 2000, Bluestone Home Loans has been helping borrowers with complex or unique financial situations access the market with confidence, offering a chance to purchase property – when others won’t – by providing tailored lending solutions. We empower brokers to serve a broader range of clients, from self-employed professionals to borrowers with past credit issues or those seeking niche lending options. With a 25-year legacy, Bluestone Home Loans has become a trusted leader in the Australian lending market, known for delivering innovative, flexible and straightforward solutions that break the mould of traditional lending.

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La Trobe Financial is Australia's premier alternative asset manager and a proven and trusted investment partner for institutional and retail investors, with c. A$20 billion assets under management. We believe that property and homeownership are the foundation of wealth creation and achieving financial independence. That is why we have created our broad product range offering lending solutions to suit your needs at every life stage, from buying your first home through to building your business and maximising your SMSF and retirement income.

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A significant portion of existing SMSF loans now sit at interest rates far above current market offerings, creating a major opportunity for brokers and lenders alike. “Many SMSF loans written five-plus years ago remain on high fixed interest rates, some as high as 9–11%,” Williams points out. “In the current rate environment, this is no longer viable, and we're seeing increased appetite among trustees to refinance and restructure.” The refinancing trend is gaining momentum as trustees become more aware of potential savings.

As a leading Australian non-bank lender, Liberty offers innovative solutions at competitive prices to support customers with greater choice. Over the past 25-plus years, this free-thinking approach to loan solutions has seen more than 700,000 customers get financial across a wide range of home, car, personal and business loans, as well as SMSF lending and insurance products. Liberty remains the only non-bank lender with an investment-grade credit rating offering custom and prime solutions to help more people get financial.

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“We continue to see a notable cohort of SMSF trustees increasing their allocation towards real estate assets”

Cory Bannister, La Trobe Financial

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“The market's resilience provides comfort to many that property remains an enticing investment opportunity within an SMSF,” says Heinnen. “This long-held appetite among Australians, combined with a desire to take control of their investments, is continuing to drive steady growth in the SMSF market.” As these independent retirement vehicles grow in popularity and sophistication, a quiet revolution is taking place in how Australians approach property investment through their retirement savings.

“SMSF refinancing remains an exception but [is] growing as changing economic landscape and investment goals prompt a rebalancing of SMSF portfolios,” Heinnen says. “Engaging with reputable and compliant lenders is crucial, ensuring SMSF trustees meet all regulatory requirements so that the tax treatment of LRBAs isn’t compromised.” This situation has created an opening for brokers to revisit existing clients and offer significant value through refinancing. “We continually discuss the importance of refinance and the pivotal role a mortgage broker has as the only adviser licensed to provide credit advice,” says Richard Chesworth, head of specialised distribution at Bluestone Home Loans. “We see considerably more room to increase the refinance activity, and it also provides an avenue for a broker to build experience in the SMSF lending space, while at the same time exploring other needs of the members beyond the SMSF loan.” The opportunity extends beyond just saving money for clients. Chesworth explains that refinancing "can in some cases shift the loan from negatively geared to positively geared, enabling the fund to pay the debt down faster or further diversify the SMSF”. The passive nature of many SMSF loans contributes to this opportunity, with trustees often not actively managing these debts. “SMSF trustees and their advisers can often become complacent with an SMSF loan as you can't access further equity and you can't cross-collateralise the asset into another loan, so it by default can become quite passive. This often results in the SMSF paying a significantly higher interest rate than what's currently available,” Chesworth says.

“SMSF lending broadens the appeal of a broker to meet their customer needs and [those of ] referral partners, to enable them to meet the needs of more customers”

Richard Chesworth, Bluestone Home Loans

time, widespread knowledge gaps remain, opening the door for brokers who can guide trustees through a complex regulatory environment. As non-bank lenders ramp up product innovation and education, SMSF property investment is evolving into one of the most active frontiers of Australia’s retirement landscape. “Australia's passion for property is no secret,” says Matthew Heinnen, group manager for commercial at Liberty. “Current ATO data indicates there are over 625,000 SMSFs holding $990 billion in assets, with investment in real property growing.” The impressive numbers tell only part of the story behind this surge in property investment through SMSFs.

Industry experts

Christopher Lee

MFAA head credit adviser, Finsure Finance and Insurance

Stewart Saunders

Heritage Bank

Darren McLeod

Beyond Bank

Fernando Lemos

Bank Australia

Industry experts

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Bank Australia

Fernando Lemos

Beyond Bank

Darren McLeod

Heritage Bank

Stewart Saunders

MFAA head credit adviser, Finsure Finance and Insurance

Christopher Lee

MFAA head credit adviser, Finsure Finance and Insurance

Stewart Saunders

Heritage Bank

Darren McLeod

Beyond Bank

Fernando Lemos

Bank Australia

Industry experts

Bank Australia

Fernando Lemos

Beyond Bank

Darren McLeod

Heritage Bank

Stewart Saunders

MFAA head credit adviser, Finsure Finance and Insurance

Christopher Lee

The generational shift - SMSFs so hot right now

Cory Bannister

La Trobe Financial

Richard Chesworth

Bluestone Home Loans

Matthew Heinnen

Liberty

Siobhan Williams

Pepper Money

Siobhan Williams is an expert in non-bank lending and is passionate about giving Australians helpful loan options that set them up for success. Williams is the head of mortgages at Pepper Money, leading a talented team who partner with brokers to provide real-life solutions for their clients. With over 20 years’ experience in financial services, she has seen a vast array of scenarios from brokers. From simple residential home loans to commercial lending and complex deal structures, Williams and her team are dedicated to finding ways to say yes when the banks say no.

Pepper Money

Siobhan Williams

Matthew Heinnen brings over 25 years’ experience to his role leading Liberty Group’s commercial lending business. His well-established background in financial operations and sales management has given him a wealth of industry knowledge. Heinnen prides himself on his ability to build strong relationships with business partners. An inspired and resilient leader, he has a strong interest in the learning and development of his entire team. Heinnen holds a Bachelor of Commerce majoring in Finance and Financial Management Services from Swinburne University of Technology.

Liberty

Matthew Heinnen

Richard Chesworth, head of specialised distribution at Bluestone Home Loans, is a market-leading commentator on SMSF-related lending solutions. He has played an active role in the development of the limited recourse borrowing sector since the introduction of the legislation in 2007 and has been responsible for the development and oversight of several leading bank and non-bank SMSF lending solutions, from 2008 through to Bluestone Home Loans’ entry to the market. Chesworth continues to work closely with key SMSF industry professionals to support the long-term growth of the segment, regularly sharing his first-hand SMSF leveraging experience with mortgage brokers, accountants and financial planners, as well as with some of Australia’s central policy agencies by contributing to past policy reviews and market guidance and application of the LRBA legislation.

Bluestone Home Loans

Richard Chesworth

Cory Bannister is senior vice president and chief lending officer at La Trobe Financial. He has over 20 years’ experience in financial services and has held a number of positions across credit and distribution since joining the business in 2000. As CLO, Bannister is focused on managing substantial wholesale and retail investors. He holds diplomas in mortgage lending and business accounting and resides in Melbourne.

La Trobe Financial

Cory Bannister

The refinancing opportunity

Published 09 June 2025

“The market’s resilience provides comfort to many that property remains an enticing investment opportunity within an SMSF. This long-held appetite among Australians, combined with a desire to take control of their investments, is continuing to drive steady growth in the SMSF market”

Matthew Heinnen, Liberty Financial

“Many SMSF loans written five-plus years ago remain on high fixed interest rates, some as high as 9–11% ... this is no longer viable, and we’re seeing increased appetite among trustees to refinance and restructure”

Siobhan Williams, Pepper Money

Pepper Money is a people-focused non-bank providing a refreshingly real-life approach to lending across home loans, commercial loans, equipment finance and car loans. We work with all sorts of people and businesses, from blue-collar to blue-chip. We take a uniquely flexible human approach, assessing each person’s situation individually. Since 2000, we have helped over 530,000 Australians achieve their financial goals. We’re consistently recognised as Australia’s leading non-bank lender known for being broker-friendly with supportive and responsive BDMs and offering a wide range of products that meet different customer needs – especially those of non-conforming and self-employed customers.

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$800,000

$600,000

$400,000

$200,000

Mar 2021

Jun 2021

Sep 2021

Dec 2021

Mar 2022

Jun 2022

Sep 2022

Dec 2022

Mar 2023

Jun 2023

Sep 2023

Dec 2023

Mar 2024

Jun 2024

Sep 2024

Dec 2024

Source: ATO’s SMSF Quarterly Statistical Report, December 2024

15%

<25

Age breakdown of SMSF members

Source: ATO’s SMSF Quarterly Statistical Report, December 2024

12%

25–34

35–44

45–49

50–54

55–59

60–64

65–69

70–74

75–84

85+

Property's enduring appeal

lending more accessible and efficient, he adds. “Technological advancements are likely to streamline loan application processes and improve compliance and reporting, further supporting this growth.” The push into commercial property through SMSFs is expected to continue, with trustees looking beyond residential real estate. Williams says, “We're seeing more trustees look to diversify into commercial property, not just residential, and explore opportunities to support their small business premises through their SMSF.” The benefits of considering this specialisation extend beyond transaction revenue. “For brokers looking to master this area, the benefits go beyond just closing deals,” she explains. “You'll forge stronger referral relationships with accountants and financial advisers, who appreciate having knowledgeable lending partners.” The industry is optimistic about both near-term and long-term growth prospects. “We expect SMSF lending to continue growing, both in client demand and broker participation,” Williams says. “Over the next few years, we see refinancing activity, commercial property loans and younger investor engagement as key growth drivers.” The partnership between brokers and lenders creates a powerful combination for serving this market.“By partnering with a flexible and diverse non-bank lender like Liberty, brokers can continue to grow their book, strengthen client relationships and tap into new high-value segments,” says Heinnen. For brokers and non-bank lenders, the trillion-dollar moment represents a rare confluence of demographic change, product opportunity and structural demand. As lending becomes more personalised and SMSF strategies more sophisticated in this era, the brokers who succeed will be those who treat SMSF not as a niche but as a key part of a broader advisory offering.

Substantial growth and innovation ahead

Despite growing awareness, substantial knowledge gaps remain around SMSF property investment options. "Our research with News.com.au found that 80% of Australians know it's possible to buy property with super, but most haven't explored the details,” Williams says. “That's a huge education gap and a powerful opening for brokers to guide clients.” This knowledge gap presents both a challenge and an opportunity for mortgage brokers looking to specialise in this area. “Our broker education sessions continually raise the awareness for refinance,” says Chesworth, highlighting the importance of ongoing education in the sector. The complexity of SMSF lending requires a specific approach from brokers, who need to walk a fine line between credit advice and financial advice. “We lead with a broker-focused SMSF lending education approach,” Chesworth explains. “This extends well beyond lending parameters, providing brokers a deeper understanding of why the structures are as they are, plus what can and can't be done while a borrowing is in place. Plus the importance of keeping discussions to credit advice and not overstepping into financial advice.”

Professional support can make all the difference for brokers entering this complex field. Heinnen notes that, “given the complexity of asset allocation, seeking advice from an SMSF specialist could be beneficial. They can offer strategic guidance tailored to the fund's specific needs and objectives”. Deep experience in the market also leads to high levels of trust that appropriate solutions can be supplied. Of La Trobe Financial, Bannister says: “As the non-bank with the longest track record in SMSF lending, our dedication to this segment gives brokers and SMSF members confidence that we’re actively working to offer a solution. When looking at specifics, our ability to provide funding up to $3 million at 80% LVR for residential property, and $10 million at 70% LVR for commercial property, both without price loadings for unique or high-density securities, continues to be an extremely valuable proposition for brokers.”

Education and trust remain key

Successful SMSF brokers share certain traits and approaches that set them apart. “High-performing brokers in the SMSF lending space are defined by a strong technical knowledge of SMSF lending structures and regulations,” says Bannister. “They are also highly consultative, working closely with SMSF members, their advisers, planners and accountants to ensure a lending solution complements the fund's current and future investment strategy and compliance obligations.” Communication skills feature prominently among the necessary attributes for success in this specialised field. “Best-in-class brokers are proactive, staying abreast of market trends and any regulatory changes,” Bannister adds. “They possess a depth of knowledge in the segment and display outstanding communication skills, recognising that SMSF transactions often require more education and time than standard residential loans.” Professional development has become a hallmark of successful brokers in this space. Heinnen says, “High-performing brokers are seeking accreditation and extra training to meet the growing market demand for SMSF lending. Fortunately, plenty of help is available for brokers who are new to this type of lending.” Education remains a consistent theme. “These brokers are confident in using non-bank lending solutions and know how to match flexible products with complex borrower needs,” says Williams. “They also make the most of lender support, like having direct access to credit teams and taking advantage of training to handle tricky deals more smoothly.” Rather than treating SMSF lending as an isolated specialisation, successful brokers integrate it into their broader service offering. “A high-performing broker in this space includes SMSF lending as part of their overall business to meet their customers’ needs and [is] not purely focused on SMSF,” Chesworth explains. “SMSF lending broadens the appeal of a broker to meet their customer needs and [those of] referral partners, to enable them to meet the needs of more customers.”

What makes a successful SMSF broker?

Non-bank lenders see substantial growth potential in the SMSF lending market over the coming years. “SMSF lending is an increasingly important growth pillar for La Trobe Financial,” says Bannister. “As the SMSF sector continues to grow and SMSF trustees seek greater control over their investment choices, demand for lenders specialising in this space will rise." Heinnen notes that this growth trend is expected to continue. “As more Australians turn to SMSFs for greater control over their retirement savings, the demand for SMSF property loans is likely to increase,” he says. Technological progress will play a key role in making SMSF

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