Non-bank lender opens self-managed super fund loans to borrowers with arrears, credit impairments or discharged bankruptcy
Non-bank lender MA Money has extended its self-managed super fund (SMSF) lending range to near-prime borrowers, as lenders reposition around the federal government’s ban on new residential SMSF borrowing.
Since 10 August 2026, SMSFs have generally been unable to enter into new limited recourse borrowing arrangements (LRBAs) to buy residential property. Existing loans are grandfathered, refinancing of existing residential LRBAs is still allowed, and funds can continue to borrow to acquire eligible business real property.
The restriction was part of the government’s agreement with the Greens to pass its tax reform package.
MA Money’s new products target the two channels left open. Near-prime loans are now available for refinancing existing residential properties and for purchasing or refinancing commercial properties through an SMSF.
Other lenders have moved in the same direction: ORDE Financial, for instance, now lends at up to 80% of the security’s value on eligible commercial and SMSF commercial properties across a wider range of locations.
Who the near-prime loans are for
Stephen Begnell, head of lending at MA Money, said the near-prime options are designed for clients who may not meet traditional lending criteria. He said they can accommodate arrears (including mortgage arrears), credit impairments and discharged bankruptcy.
“SMSF lending can involve complex borrowing structures and property requirements, so having access to a broader range of lending options is important,” Begnell said. “By introducing near prime across both residential and commercial SMSF lending, we’re giving brokers greater flexibility to support clients whose circumstances may fall outside traditional lending criteria.”
Tim Lemon (pictured), national sales manager at MA Money, added the refinance pricing gives brokers a reason to review existing client books.
“This gives brokers another reason to revisit their clients’ existing SMSF residential Loans and explore whether refinancing could provide a more suitable lending solution,” he said.
