Into people. Not just transactions
At Thinktank, we work exclusively with mortgage brokers and that focus drives our commitment to ongoing innovation. We’re always developing new products and offerings designed to help brokers deliver the best possible experience and outcomes for their clients.
We take pride in listening to broker feedback and providing straightforward solutions to the requests and suggestions we receive. This approach has driven numerous recent changes to our product offerings and we remain dedicated to adapting to the evolving market to meet the diverse needs of brokers and borrowers.
Thinktank was launched in 2006 in response to a previously unanswered demand for straightforward, set-and-forget commercial lending solutions. Our product suite was extended in 2013 to include SMSF lending, residential loan options in 2018, and continuing its tradition of innovation and diversification, launched private lending products in 2024.
At a time when traditional super returns feel as fickle as a hastily announced tariff, self-managed super funds (SMSFs) have emerged as a compelling alternative.
As of March 2025, there were 646,168 SMSFs registered, according to the latest Australian Taxation Office (ATO) figures, comprising 1.19 million members.
In fact, there was a total of $73.6 billion in LRBAs in March 2025 - setting yet another record high and up $4 billion in just 12 months.
But what’s behind the recent SMSF boom?
Belinda Wright, head of partnerships and distribution at non-bank lender Thinktank, says many Australians have developed greater awareness that superannuation is likely to be their largest and most tax-effective financial asset outside the family home.
“Yet, in many cases, it sits idle in industry funds with little engagement or genuine optionality. By contrast, SMSFs offer personal control, flexibility in investment choices, and a closer sense of ownership over long term wealth strategies,” Wright says.
Volatile markets, increasing balances, and uncertainty around retirement policy have also pushed many to take a more active role in the management of their super, according to Wright.
“With the right advice and structure, SMSFs can be incredibly effective wealth vehicles – and Australians are increasingly responding to that,” she says.
Greater control
As trustees increasingly treat their funds as dynamic investment vehicles rather than passive retirement accounts, SMSF lending has evolved from what was once a relatively small niche to a core segment of the lending landscape.
Rising contribution limits have played a role, according to Wright, with larger SMSF balances leading to greater borrowing capacity and appetite for investment.
“Commercial property continues to rise in popularity, with a preference for owner occupied assets – as professionals such as doctors, lawyers, physios, tradies, and a variety of other small business operators are increasingly wanting to own the premises they operate from, choosing to have their rent effectively contribute to their retirement,” Wright says.
“At the same time, there’s a notable surge in residential SMSF lending, particularly in metro and near city locations where trustees see long-term growth potential on the back of a growing population and entrenched housing supply issues.”
Mahesh Thapa, co-founder and partner at Sydney-based financial services firm AM Advisory, says he’s seen strong demand for limited recourse borrowing arrangements (LRBAs) to purchase property in both the commercial and the residential space.
“Commercial property loans remain in high demand among small business owners seeking to own their business premises via their SMSF. Meanwhile, residential SMSF loans are also growing in popularity as trustees aim to diversify and build long-term wealth,” Thapa says.
“Compared to last year, there’s more confidence and a clearer understanding of how to use leverage within super to create value.” In fact, there was a total of $73.6 billion in LRBAs in March 2025 - setting yet another record high and up $4 billion in just 12 months.
Meanwhile, Nicholas Wilcox, director and finance broker at Sydney-based brokerage Blue Crane Capital, says interest rate pressure had pushed would-be investors to their buying limits and tightened serviceability, meaning purchasing through an SMSF has gained in popularity.
“I have clients who have gone down the property investing path and a few still want to buy more property,” Wilcox says.
“[An SMSF] gives clients another option. They are looking at their fund and saying, ‘I’ve got $200,000 growing at five per cent a year. I think property may be able to outperform that.’”
Outside of purchases, refinancing SMSF loans can also provide good savings for borrowers, with brokers often able to find much more competitive interest rates, particularly in the current lending environment.
“Many legacy SMSF loans were established with higher interest rates and shorter loan terms, which can result in unnecessarily high monthly repayments,” Wright says.
“By refinancing, trustees may be able to secure a much more competitive rate or extend the loan term, ultimately improving the fund’s cash flow and producing more capital for investment.”
Team effort
While some brokers may see all these indicators as a sign to jump feet first into the SMSF space, there are several things to be aware of before they do.
For instance, the likely reintroduction and passage of Division 296 legislative amendments – introducing additional tax obligations for larger funds – has created one potential headwind.
“These changes are expected to introduce a $3 million cap on funds before a higher rate of tax will apply along with tax being payable on unrealised gains,” Wright says.
“Should this come into effect, we believe the popularity and relevance of SMSF [to] acquire and hold property will remain, although the size of funds and assets within them may contract. It is definitely a case of ‘watch this space’.”
However, Wright also says brokers shouldn’t be discouraged by this or the perceived level of complexity typically associated with SMSF finance.
“SMSF lending does have a few more moving parts: bare trusts, LRBAs, contribution rules and regulatory compliance overlays among other requirements. But complexity doesn’t mean it’s difficult for brokers to produce a well-structured deal and work with experienced lenders. That’s where Thinktank comes in,” Wright says.
“We support brokers every step of the way – our relationship managers will walk through scenarios, review structures, and help avoid the common traps (like trying to arrange cash out on a refinance, which isn’t allowed beyond the meeting costs of changing lenders).
“We also provide broker training, and direct access to our credit team for pre-submission support. Brokers aren’t expected to be SMSF experts so we help fill those gaps.”
For Thapa, getting the loan structure right from day one is crucial.
“Any errors at the setup stage can delay the process or invalidate the entire arrangement,” he says.
“Clarity, compliance, and communication are the three pillars brokers must uphold in this space.”
Wright says brokers can do this by partnering with the right professionals – accountants, financial advisers, and a lender who knows the ropes.
“Learn the basics: LRBAs, contribution rules, and what’s allowed, and not allowed, under super law. And don’t be afraid to lean on your lender – we’re here to make you look good,” she says.
“Most importantly: ask questions and bring us into the conversation early. The earlier we can get involved, the smoother the process will be for you and your client while un-necessary costs can be avoided.
“SMSF lending is one of the better ways brokers can differentiate and add real long-term value to clients. It’s genuinely worth the learning curve.”
SMSF lending case study 1
Security property in Silverwater, NSW
• $2,600,000
• 65 per cent LVR
• 30 years P&I
The three borrowers are business partners, all self-employed project managers of different construction companies.
The purpose of the loan was to purchase an industrial property using their individual SMSFs.
Thinktank was able to help the borrowers achieve their wealth management goals through our tenants in common structure. This enabled the three individual borrowers to purchase the property in three individual SMSFs.
SMSF lending case study 2
Security property in Sydney CBD, NSW
• $1,300,000
• 75 per cent LVR
• 30 years P&I
The borrowers were colleagues who operate a clinic together. One PAYG, the other self-employed; they sought to purchase the office premises from which they work.
Thinktank was able to help the borrowers achieve their investment objective through our tenants in common structure. This enabled them to purchase the property utilising their individual SMSFs.
The borrowers’ FY24 financials were not yet lodged. Thinktank’s Mid Doc option allowed the lender to satisfy serviceability without delaying the purchase.
