How to Access Superannuation to Buy a House: Our Top 10 Tips

Owning a home is a dream for many Australians, and for some, accessing superannuation savings and funds can help make this dream a reality.

In this guide, we’ll cover the top 10 tips on how to access your superannuation to buy a house, whether it be a residential home, investment property, or commercial property. We’ll also delve into the Home Super Saver Scheme and the intricacies of setting up a Self Managed Super Fund (SMSF).

1. Understanding Superannuation and Its Restrictions

Superannuation, or ‘super’, is a compulsory savings program designed to provide Australians with an income in retirement. The funds in your super account are generally only available once you reach the preservation age (between 55 and 60, depending on your birth year) and retire. However, there are specific conditions under which you can access your super early, and one such condition is through the Home Super Saver Scheme.

A mortgage broker helps clarify the restrictions and conditions of accessing superannuation for property investment. They can explain how different superannuation rules apply, particularly regarding the preservation age and conditions of release. This knowledge ensures you make informed decisions without risking non-compliance with superannuation laws.

2. First Home Super Saver Scheme (FHSSS)

The Australian Government introduced the First Home Super Saver Scheme (FHSSS) to help first-time homebuyers save money for a house deposit. Under the FHSSS, you can make voluntary contributions to your superannuation fund, which can later be withdrawn to purchase your first home. 

Here’s how it works:


  • You must be a first-time homebuyer.

  • You need to live in the premises you are buying, or intend to, as soon as practicable.

  • You must not have previously owned property in Australia, including an investment or commercial property.

How It Works

  • You can make voluntary contributions of up to $15,000 per financial year and a total of $30,000 across all years.

  • These contributions can be either concessional (before tax) or non-concessional (after tax).

  • When you’re ready to buy your first home, you can apply to release your voluntary contributions, plus associated earnings.

Applying for Release

  • Request a determination from the ATO to find out the maximum amount you can withdraw.

  • Once approved, the ATO will release the funds to you, and you must sign a contract to purchase or construct a home within 12 months.

The First Home Super Saver Scheme (FHSSS) can be tricky to navigate, but mortgage brokers simplify this process by guiding you on how to make voluntary contributions and the best time to request a release of funds. They help you maximise your savings within the FHSSS limits and ensure you meet all eligibility criteria, making the path to your first home smoother.

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3. Using Superannuation for an Investment Property

While you generally can’t use your super to buy an investment property directly, only a portion of it, you can do so through a Self Managed Super Fund (SMSF). Here’s what you need to know:

Self Managed Super Fund (SMSF)

An SMSF is a private superannuation fund that you manage yourself. It allows you to invest in property, among other assets, but you must follow strict rules, applicable taxes, and regulations.

Setting Up an SMSF

  • Establish a trust and trust deed.

  • Appoint trustees (you can be a trustee along with other members).

  • Register the SMSF with the Australian Taxation Office (ATO).

  • Set up a bank account for the SMSF.

  • Roll over your existing superannuation funds into the SMSF.

Investing in Property through SMSF

  • The property must meet the sole purpose of providing fund members retirement benefits.

  • It must be an arm’s length transaction, meaning the property must be bought and maintained commercially.

  • If borrowing is involved, it must be done under a Limited Recourse Borrowing Arrangement (LRBA).

When considering an SMSF to purchase an investment property, a mortgage broker provides detailed insights into SMSF regulations, the setup process, and compliance requirements. They assist in structuring your SMSF properly, ensuring it meets all ATO guidelines, and helping you choose investment properties that align with your retirement goals.

To learn more about finding the right lender for your investment property, read our article on commercial lenders.

4. Commercial Property through SMSF

Commercial properties and vacant land can also be purchased through an SMSF like investment properties. The process is essentially the same, but there are additional benefits for business owners:

Benefits for Business Owners

  • You can lease the commercial property to your business, provided it is done at market rates and follows all legal protocols.

  • This can be a strategic way to use your superannuation to support your business while growing your retirement savings.

Important Considerations

  • Ensure compliance with all SMSF regulations.

  • Be aware of the costs of setting up and maintaining an SMSF, as they can be higher than industry or retail super funds.

Purchasing a commercial property through an SMSF involves specific benefits and compliance requirements. Mortgage brokers guide you through the legalities of leasing commercial property to your business, ensuring transactions are conducted at market rates and in compliance with SMSF rules. This expert advice helps optimise your investment returns while maintaining regulatory compliance.

For business owners, having a reliable accountant is crucial.

5. Legal and Financial Advice

Accessing superannuation for residential property or investment involves complex legal and financial considerations. It’s crucial to seek professional advice to make informed decisions about personal contributions and comply with all regulations.

Consulting a Financial Advisor

  • A financial advisor can help you understand the tax implications, investment risks, and the overall impact on your retirement savings.

  • They can assist in creating a long-term strategy that aligns with your financial goals.

Legal Advice

  • A solicitor with experience in superannuation and property law can guide you through the legal aspects of using your super to buy property.

  • They can help you navigate the SMSF setup, ensure compliance, and manage contracts and transactions.

Mortgage brokers often have a network of trusted legal and financial advisors. They can connect you with professionals specialising in superannuation and property law, ensuring you receive comprehensive advice on tax implications, investment risks, and regulatory compliance. This network covers all legal and financial aspects of your investment.

6. Understanding the Risks

Investing in property through your superannuation is not without risks. Property markets can fluctuate, and you could lose money. Understanding these risks and considering whether property investment aligns with your retirement strategy is essential.

Market Risks

  • Property values can decrease, affecting your superannuation balance.

  • Rental income is not guaranteed and can fluctuate based on market conditions.

Compliance Risks

  • Failing to comply with SMSF regulations can result in significant penalties.

  • Ensure you stay current with legislative changes impacting your SMSF and property investments.

Property investment through superannuation involves inherent risks, and mortgage brokers help you assess these risks thoroughly. They provide insights into market trends, potential fluctuations, and risk mitigation strategies.

7. The Importance of Due Diligence

Thorough due diligence is essential before making any investment decision. This involves researching the property market, understanding the potential returns on the same property, and assessing the property’s long-term value.

Research and Analysis

  • Study market trends and economic forecasts.

  • Evaluate the location and potential for capital growth.

  • Assess rental yield and occupancy rates for investment properties.

Professional Inspections

  • Engage property inspectors to assess the condition and value of the property.

  • Ensure there are no hidden issues that could affect your investment.

Due diligence is critical when investing in property through superannuation. Mortgage brokers assist in conducting thorough market research, property inspections, and financial viability assessments. They ensure you make well-informed decisions based on accurate and detailed information, helping you avoid costly mistakes.

8. Superannuation Contribution Strategies

Maximising your tax rate on your super contributions can enhance your ability to save for a property. There are various contribution strategies you can employ:

Concessional Contributions

  • These are pre-tax contributions, such as salary sacrifice and employer contributions, which are taxed at 15%.

  • The annual cap for concessional contributions is $27,500 (as of 2023).

Non-Concessional Contributions

  • These are after-tax contributions, with an annual cap of $110,000 (as of 2023).

  • Non-concessional contributions can help you reach your savings goal faster, but be mindful of the caps to avoid excess contributions tax.

Maximising superannuation contributions can significantly impact your ability to invest in property. Mortgage brokers advise on the most effective contribution strategies, including concessional and non-concessional contributions. They help you understand the benefits and limitations of salary sacrifice arrangements, enabling you to boost your super savings efficiently.

9. Using a Mortgage Broker

Navigating the property market and securing a home loan can be complex. A mortgage broker can be invaluable in finding the right loan and negotiating favourable terms.

Benefits of a Mortgage Broker

  • Access to a wide range of lenders and loan products.

  • Expert advice tailored to your financial situation.

  • Assistance with the loan application process.

Choosing the Right Broker

  • Look for a broker with experience in property investment and SMSFs.

  • Check their credentials and reviews from previous clients.

  • Ensure they have a thorough understanding of your financial goals and constraints.

The complexities of securing a loan for property investment can be overwhelming. Mortgage brokers have insider knowledge of lender policies, access to exclusive loan products, and can negotiate favourable terms on your behalf. Their advice ensures you secure the best financing options for your property purchase.

10. Long-Term Financial Planning

Buying a property using your superannuation is a significant financial decision that should be part of a broader retirement and tax savings strategy. Long-term planning ensures you can achieve your retirement goals while fulfilling your property investment ambitions.

Retirement Goals

  • Clearly define your retirement goals and how property investment fits into these plans.

  • Consider the impact on your retirement savings and whether you will have enough to live comfortably.

Ongoing Management

  • Regularly review your property investment and overall superannuation strategy.

  • Stay informed about changes in legislation that may affect your SMSF or property investments.

  • Be prepared to adjust your strategy as needed to ensure you remain on track to meet your financial goals.

Long-term financial planning is essential when using superannuation to buy property. Mortgage brokers help integrate your property investment into your overall financial plan, providing ongoing management advice and ensuring your strategies align with your long-term retirement goals. This holistic approach ensures you achieve both your property ownership and retirement objectives.


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Accessing your superannuation to buy a house can be a viable option for Australians looking to enter the property market.

Whether through the Home Super Saver Scheme for first-time homebuyers or an SMSF for home buyers of investment and commercial properties, pathways are available to leverage your super for property investment. However, it’s crucial to approach this decision with careful planning, professional advice, and a thorough understanding of the risks and regulations involved.

By following these top 10 tips, you can navigate the complexities of using your superannuation to buy a house and work towards securing your dream home or investment property. Always seek legal and financial advice to ensure compliance and make informed decisions that align with your long-term financial goals.

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FAQs: Access Superannuation to Buy a House

Yes, your SMSF can partner with other investors, including other SMSFs, individuals, or entities, to purchase a property, provided it complies with the SMSF investment strategy and rules.

Costs include setup fees, ongoing administrative fees, annual audits, and compliance costs. It’s important to consider these when deciding to establish an SMSF.

Setting up an SMSF involves creating a trust, obtaining a trust deed, appointing trustees, and registering with the ATO. Professional advice is recommended to ensure compliance with legal and regulatory requirements.

Property investment carries risks, and underperformance can impact your retirement savings. Diversifying your SMSF investments and having a clear investment strategy is crucial.

SMSF funds can be used to renovate a property if it is owned outright by the SMSF. However, if the property is under an LRBA, only maintenance, not significant improvements, are allowed.

Yes, the property must meet the sole purpose test, cannot be acquired from a related party, and cannot be lived in or rented to a fund member or related party.

Work with a financial advisor or SMSF specialist to identify properties that align with your SMSF’s investment strategy and comply with all regulations.

You will need documentation including the trust deed, investment strategy, loan agreements (if applicable), and property purchase contracts. Professional guidance is recommended.

Yes, your SMSF can cover associated purchase costs such as stamp duty, legal fees, and property management fees, provided these are all for investment purposes.

Consult with a financial advisor, SMSF specialist, or tax professional who can provide tailored advice and ensure compliance with all legal and regulatory requirements.

mansour soltani


Mansour has spent more than two decades involved in the purchase and sale of real estate, acquiring both investment and commercial properties throughout Australia, including in major cities and smaller regional locations.

He is the proprietor of a finance brokerage firm, overseeing a portfolio worth in excess of 75 million in loans and serving a diverse clientele across Australia and a regular contributor to This has equipped him with extensive knowledge in various investment tactics, allowing him to offer significant insight.

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