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How it Works for Borrowers

Fairer Terms. No Surprises.

The simplest, smartest, fastest and most transparent way for Self-Managed Superannuation Fund (SMSF) trustees to apply for an investment property loan, and have it approved, funded and settled – 100% online.

interest rates from 3.73% p.a. (3.93% p.a. comparison rate)
loan amounts from $200,000 to $3,000,000
flexible loan terms from 1 to 15 years
limited recourse SMSF investment property loans

Funding your SMSF investment property loan has never been easier

Our marketplace lending platform provides you the opportunity to access funding for a new SMSF investment property purchase or LRBA refinance, directly from multiple investors looking to fund these types of loans. Unlike with banks and other traditional lenders, you’ll know within seconds whether your fund qualifies for credit and how much it is eligible to borrow. Our quick, efficient process means no hassles or wasted time.

  • Check your fund's eligibility

    Simply complete the secure user registration, answer a few quick questions about your fund and the property you intend purchasing, and our platform will instantly determine your fund’s eligibility for a LendEx SMSF investment property loan. Best of all, it will cost you nothing but a few minutes of your time to get the answer you need. It's that easy.

  • Submit your loan request

    Assuming your fund pre-qualifies for a LendEx SMSF investment property loan, and the loan amount and interest rate we provided in your tailored quote is acceptable to you, simply complete the loan request (application) and our platform will provide an instant decision so that you know exactly where you stand.

  • Get your loan approved

    Next, we’ll provide you access to a personalised borrower dashboard. Here you'll be able to get real-time updates on the status of your loan. You'll also be able to directly upload (click, browse, drag and drop) any requests for additional information required by our credit assessment team.

  • We'll get your loan funded and settled

    Once all of the directors of your fund's corporate trustee have electronically signed the Loan Agreement, we'll get your loan listed in our online marketplace. All you need to do now is sit back and relax as you watch your loan get funded and effortlessly settled. It's that simple!

What should you do before you get started?

Seek Professional Advice

Purchasing an investment property through a SMSF must be done under very strict borrowing conditions called a 'limited recourse borrowing arrangement' (LRBA), and should not be contemplated without first seeking independent SMSF advice from a suitably qualified accountant or financial planner, holding an Australian Financial Services Licence (AFSL).

Find a SMSF Specialist
Review Loan Suitability

Okay. So, you've obtained independent financial advice and are ready to proceed with the purchase or refinance of a commercial or residential investment property loan for your fund. The next step is to read our borrower eligibility criteria before applying for a LendEx SMSF investment property loan.

Borrower Eligibility Criteria
Obtain Funding Approval

Your fund has purchased a property and you are ready to get a loan. Well, we'd like to help you with that. Applying online for a LendEx SMSF investment property loan is the fastest, simplest and most transparent way for your fund to get a limited recourse commercial or residential investment property loan approved, funded and settled. What are you waiting for?

Get Your Loan Pre-Approved

SMSF Loan Grades and Interest Rates

Each borrower has unique characteristics that influence their probability of default on a loan. That's why we use cutting edge technology to individually tailor your interest rate based on your fund's likelihood of repayment. What's more, we pride ourselves on providing terms that are fair and fully transparent. So, you'll get a competitive rate, with no sneaky contract terms or hidden fees.

Commercial Property

LendEx Loan Grade Band
Interest Rate Range
Establishment Fee
Comparison Rate Range
AA

4.07% to 5.13% p.a.

Maximum of 3.00% (excl. GST)

4.27% to 5.33% p.a.

A

5.48% to 7.05% p.a.

Maximum of 3.00% (excl. GST)

5.68% to 7.25% p.a.

B

7.36% to 8.50% p.a.

Maximum of 3.00% (excl. GST)

7.56% to 8.70% p.a.

C

N/A

N/A

N/A

D

N/A

N/A

N/A

HR

N/A

N/A

N/A

Residential Investment Property

LendEx Loan Grade Band
Interest Rate Range
Establishment Fee
Comparison Rate Range
AA

3.73% to 4.65% p.a.

Maximum of 3.00% (excl. GST)

3.93% to 4.85% p.a.

A

5.02% to 6.39% p.a.

Maximum of 3.00% (excl. GST)

5.22% to 6.59% p.a.

B

6.74% to 7.70% p.a.

Maximum of 3.00% (excl. GST)

6.94% to 7.90% p.a.

C

N/A

N/A

N/A

D

N/A

N/A

N/A

HR

N/A

N/A

N/A

Please Note:

The interest rates detailed above are based on the current prevailing minimum / maximum interest rates applicable to individual loans approved by LendEx and which are assigned a LendEx loan grade (specific underlying loan credit risk designation) within a particular LendEx loan grade band (a group of underlying loans within a specific credit risk category range). Individual LendEx loan grades provide investors a useful snapshot of the overall credit quality of the loan as assessed by LendEx.

For example: Individual loans are assigned a ‘loan grade’ designation (i.e. a ‘credit risk’ designation) of say AA1, AA2, AA3, which are then grouped into an overarching LendEx loan grade band of “AA”. The individual loan’s grade and the overarching loan grade band, is designed to provide investors with a simple qualitative credit quality (credit risk) assessment indicator (i.e. a loan grading indicator), that alerts investors to the credit quality of a loan as determined by LendEx during the credit assessment process undertaken to determine the underlying obligor’s (borrower’s) creditworthiness.

Loans grouped in the AA, A and B LendEx loan grade bands are assessed by LendEx as having superior credit quality attributes, and a lower probability of default, to that of loans distributed in the lower loan grade bands of C, D and HR. As such, the interest rate payable to an investor by an obligor (borrower) on a loan funded in the “AA” LendEx loan grade band, will be less than that of a loan funded in the “A” LendEx loan grade band. This is a direct result of each loan being individually priced to reflect the credit quality of the specific loan (this is commonly referred to in the industry as “risk-based pricing”). Meaning, the interest return investor(s) receive on a specific loan they have funded, is adjusted to reflect the credit quality of the specific loan and the counterparty credit risk the investor is accepting on that loan.

All LendEx SMSF investment property loan requests are assessed against a proprietary LendEx SMSF credit assessment scorecard that automatically rejects any loan request (application) that does not meet our normal credit criteria and our assessment of the creditworthiness of the applicant (i.e. the borrower). Each individual loan that meets our normal credit criteria from time-to-time is then assigned a specific LendEx loan grade and priced individually accordingly. Rates shown above are subject to change and are indicative only. Neither LendEx, nor any of its associates, guarantees or make any representations as to the performance of the asset backed securities (Notes) issued by the LendEx Origination Trust to the LendEx Lending Fund corresponding with a specific loan an investor has elected to invest in, as the performance of individual asset backed securities (Notes) is solely dependent on the performance of the underlying loan by the obligor (borrower).

More Accessible.
Truly Straightforward.

Property is a proven and stable long term investment asset class. When you look back over ten, twenty, thirty, even fifty years, you get a picture of exactly how strongly property has performed. Combine this strong performance with an ever-increasing number of small business operators establishing a SMSF, and wanting the security and stability of owning their own business premises, and there is little wonder why the use of limited recourse borrowing arrangements (LRBAs) have become such popular investment strategies for SMSF trustees.

The only problem is, the banks' appetites for this type of lending has diminished over the past few years, resulting in this select group of borrowers needing to seek out new alternative funding sources. Enter LendEx. A dynamic and innovative investment and lending platform that makes funding SMSF investment property as accessible and straightforward as possible.

Get Your Loan Pre-Approved

Frequently asked questions?

Who are LendEx's ideal borrowers?

LendEx currently offers loans to qualifying self-managed superannuation funds (SMSFs) with a corporate trustee who are looking to access funding for the purposes of purchasing a new commercial or residential investment property, or to refinance an existing LRBA commercial or residential investment property loan from a related party or financial institution.

The directors/members of the corporate trustee and SMSF are often professionals or small to medium sized business owners looking to purchase business premises from which they intend operating their practice or business. These trustees/members ideally have a minimum of ten (10) years left in the accumulation phase until they reach preservation age and intend transitioning to the pension phase.

They are generally uncomfortable with the idea of having to provide a bank or similar financial institution personal or director guarantees (LendEx doesn’t require them), and usually have a preference for maintaining a diversified SMSF investment portfolio across multiple asset classes. This usually necessitates them preserving 30% to 50% of their SMSF’s available capital in cash, fixed interest investments and shares, rather than assigning more capital than is needed out of their SMSF into the limited recourse borrowing arrangement (LRBA) than is absolutely necessary to adequately service the debt.

While this usually means that the loan to valuation ratio (LVR) of the LRBA in isolation could be considered high (up to 80%), these directors/members typically take a more considered view of the combined SMSF and LRBA assets and liabilities, LVR and liquidity ratio, to determine and maintain what can reasonably be considered a more conservative gearing ratio of 50% or less.

What type of property security does LendEx accept?

LendEx accepts real property (first mortgage) for loans funded through the LendEx Lending Fund.

SMSF investment property loans offered through LendEx are only available to SMSFs with a corporate trustee for the purposes of purchasing or refinancing income producing commercial or residential investment property.

Unfortunately, we do not offer loans for new construction (off-the-plan), private owner-occupier or investment purposes. While we don’t as a general rule offer loans for specialised properties such as hotels, motels, petrol stations, child care centres, caravan parks, retirement villages, etc. we are favourable to considering these types of property on a case-by-case basis. For more detailed information on acceptable and unacceptable security, we recommend that you speak to one of our Client Success Managers on 1800 536 339 to assist you further.

What is LendEx's lending criteria?

LendEx utilises proprietary technology that leverages our credit assessment scorecards and models to instantly assess an SMSF’s eligibility for a LendEx SuperMaximiser Loan against our lending criteria using a range of information obtained directly from the borrower and other data sources.

During a three-stage credit assessment process, we run proprietary algorithms and data analytics through two distinct bespoke credit scorecards at different stages in the loan origination process, to make a final credit determination taking into account three primary areas of criteria (the corporate trustee and its associates, the SMSF and the LRBA (including the property and the loan)).

For additional information regarding our eligibility criteria please see the Borrower Eligibility section of our website.

How much can I borrow?
LendEx currently facilitates loans of between $200,000 and $3,000,000. The actual amount your SMSF can borrow will be determined during our initial eligibility assessment and subsequent more comprehensive credit assessment of your SMSF’s:
  • legal and compliance structure;
  • capacity to repay the loan;
  • collateral (the property security) being pledged;
  • the amount and quality of the capital you have available to offer to support the loan;
  • character and that of its associates.
How do I submit a loan request (Application)?
Purchasing an investment property through a SMSF must be done under very strict borrowing conditions called a 'limited recourse borrowing arrangement' (LRBA), and should not be contemplated without first seeking independent SMSF advice from a suitably qualified accountant or financial planner, holding an Australian Financial Services Licence (AFSL).

Assuming you’ve already obtained independent financial advice and you’ve familiarised yourself with our Borrower Eligibility criteria and are now ready to proceed with a loan request, all you need to do is complete our online form consisting of the following parts and you're good to go:
  • User Registration
  • In this section of the online form you’ll need to provide us with some personal information about you (name, surname, date-of-birth, mobile phone number, identity information, etc.) to set you up as the primary contact with online access for the SMSF. Please note that you must be one of the directors of the corporate trustee of the SMSF.
  • Eligibility Questionnaire
  • In this section of the online form you’ll need to provide us with information about the corporate trustee of your SMSF, the SMSF (the trust), the limited recourse borrowing arrangement (LRBA), the property you propose purchasing or loan you propose refinancing, and the loan.

    Following submission of the questionnaire we will provide an instant eligibility decision as to whether or not your SMSF qualifies for a LendEx SMSF investment property loan.
  • Application
  • Assuming your SMSF qualifies for a LendEx SMSF investment property loan, and the loan amount and interest rate we provided in the tailored quote is acceptable to you, simply proceed to complete the final section of the online form and our platform will provide an instant decision as to whether or not your loan request has been “pre-approved” so that you know exactly where you stand. It's that easy.

    There are no fees or charges payable for completing the eligibility questionnaire or making an application for a LendEx SMSF investment property loan.
Can I monitor the progress of my loan request (Application)?

Once you’ve successfully submitted an application and your loan request has been “pre-approved”, we’ll provide you access to your personalised Borrower Dashboard in our secure online Member Area. Here you'll be able get real-time updates on the status of your loan. You'll also be able to directly upload (click, browse, drag and drop) any requests for additional information required by our credit assessment team using the dashboard wizard.

Fairer Terms.
More Transparent.

We thought we’d turn the Australian investment property lending industry on its head by introducing good old-fashioned fairness, transparency and service. Not only do we leverage technology to provide a superior customer experience, but we've re-invented the SMSF investment property loan to ensure it is much fairer than similar loans offered by traditional lenders, with no director guarantees, no hidden costs, no early repayment penalties and definitely no surprises.

We’ve even developed a borrower dashboard that enables you to track the status of your application and loan at any time, so you’ll know exactly where you stand and what is happening with your loan at all times, in a totally transparent and empowering way. And don’t worry, although you can do everything online, you’ll still have access to a dedicated team of SMSF lending specialists based right here in Australia to assist you via phone, chat or email.

Get Your Loan Pre-Approved

What are you waiting for? Get started now!

Why not apply for a LendEx SMSF investment property loan right now, and experience the fastest, simplest and most transparent way to get your fund pre-approved for an SMSF investment property loan for your fund?

Need Help?

If at any time you'd like some help – please feel free to chat with one of Client Success Managers using the online chat function to the right of your screen.
Or, if you'd prefer to speak to a real person here in Australia, simply give us a call on 1800 536 339.

IMPORTANT NOTICES

By accessing or using this website you agree to be bound by our Terms of Use.

LendEx Group Limited ACN 166 950 376, LendEx RE Limited ACN 168 531 851 and LendEx Services Pty Ltd ACN 168 531 888 (collectively LendEx Group, LendEx, we, us, our) provide the LendEx Lending Platform (Platform) comprised of software systems and applications via lendex.com.au and its sub-domains, which facilitates marketplace lending transactions between Members that invest or apply to invest through the LendEx Lending Fund using the Platform (Investors) and Members that borrow or apply to borrow using the Platform (Borrowers). LendEx RE Limited ACN 168 531 851 holds Australian Financial Services Licence (AFSL) Number: 477 371 and is the Trustee for the LendEx Lending Fund (Fund). LendEx Services Pty Ltd ACN 168 531 888 is an authorised representative of LendEx RE Limited and is the manager of the Fund and operator of the Platform. Perpetual Corporate Trust Limited ABN 99 000 341 533 acts as custodian of the Fund and P.T. Limited ABN 67 004 454 666 acts as security trustee for the LendEx Origination Trust.

Investment returns (interest rates) in this website are displayed on an annualised basis and are gross of investment management fees. Comparison rates in this website are true only for the examples given and are based on a loan of $400,000 over a 15-year term. Different amounts and terms will result in different comparison rates. Costs such as late payment fees, ad hoc property valuation fees, and cost savings such as fee waivers or rebates, are not included in the comparison rate but may influence the cost of the loan. Where a fixed rate term applies, after the fixed rate period expires the interest rate will revert to the applicable Variable Rate. All loan interest rates are displayed on an annualised basis. Terms, conditions, fees, charges and lending criteria apply.

All information contained in this website is for general advice purposes only and does not take into account your objectives, financial situation or needs. Before acting on any general advice contained in this website, LendEx recommends you consider whether it is appropriate for your particular circumstances. Investors should read and understand our disclosure documents, including the relevant Offer Document (Information Memorandum (IM)) before considering making any investment decisions regarding any LendEx financial products. LendEx does not guarantee nor warrant the performance of any investments in asset backed securities (Notes), the maintenance or repayment of capital, or any particular rate of return. Investors should read and understand our disclosure documents before making any decision to invest in asset backed securities (Notes) through the Fund. Borrowers should read and understand our eligibility criteria, loan product information and how personal and credit-related information will be collected, used and disclosed by us in accordance with our Privacy Policy & Credit Reporting Policy, before applying for a loan.