New industry data reveals scale of SMSF residential lending ban far exceeds Government estimates

27 July 2026

New data from Australia's specialist non-bank lenders reveals the Government's ban on new residential limited recourse borrowing arrangements (LRBAs) for self-managed superannuation funds (SMSFs) will affect a market significantly larger than official estimates suggest, with major implications for housing supply and competition in the mortgage market.

Preliminary data provided by members of the Australian Finance Industry Association (AFIA) shows over 16,000 new residential SMSF loans were written in FY26, with total security of $10.3 billion. As AFIA members do not represent the full market, the true figure is likely higher.

This is approximately four to five times the ATO's average yearly estimate of 4,000 new LRBAs, and suggests the scale of this market, and the impact of the ban, may not have been fully understood when the amendment was passed without consultation.

Read the media release here.