Can I Buy A House with My Super?

Buying your first home can feel like an uphill climb, especially when it comes to saving for a deposit. If you’re struggling to break into the property market, you might be wondering: “can I buy a house with my super?”

While superannuation is designed to support you in retirement, there are some limited cases where you can tap into it to help purchase a home.

Let’s explore three key options if you’re considering how to use your super to buy a house.

1. Use the First Home Super Saver (FHSS) Scheme

The First Home Super Saver Scheme allows eligible first-home buyers to access voluntary contributions made to their super to put toward a home deposit.

How it works:

You can withdraw up to $50,000 of your personal contributions (plus earnings) from your super to help buy your first home. These contributions can be made through salary sacrifice or after-tax payments.

Pros:

• It’s a tax-effective way to save (contributions are taxed at 15% instead of your marginal rate)
• There’s a higher return potential compared to a regular savings account
• You can withdraw up to $50,000 (or $100,000 for couples)

Cons:

• It only applies to voluntary contributions, not your total super balance
• You must apply through the ATO, which can take time
• There are strict eligibility criteria. For example, you must be a first-home buyer, 18 years or older, and intend to live in the property.

This is currently the most accessible way for first-home buyers to use their super toward a property.

2. Use a Self-Managed Super Fund (SMSF)

If you have a self-managed super fund, you may be able to use it to buy an investment property. However, there are important conditions.

How it works:

Your SMSF can purchase property as long as it’s for investment purposes only, and not for you or your family to live in. The property must comply with the “sole purpose test,” meaning it’s solely intended to provide retirement benefits.

Pros:

• It allows you to invest in residential or commercial property through your super
• Rental income and capital gains stay within the fund, potentially taxed at concessional rates
• It could offer strong long-term returns if your property performs well

Cons:

• You cannot live in or use the property yourself (until retirement)
• There are high setup and ongoing admin costs
• You must follow strict legal and compliance rules. Mistakes can result in significant penalties
• It requires a large super balance to be viable (typically $200,000+)

If you’re wondering how to use your super to buy a house as an investor, this may be a suitable path, but it’s complex and not for everyone.

3. Buy a Home After Reaching Preservation Age

Once you’ve reached your preservation age (usually between 55 and 60, depending on your birth year) and meet a condition of release (like retirement), you can access your super and use it however you like. Yes, even buying a home.

How it works:

After accessing your super, you can withdraw a lump sum or start an income stream. You may then choose to purchase a home, whether you want to downsize, look for a sea change, or just buy outright.

Pros:

• You have full control over your funds once eligible
• You can buy a home to live in without any restrictions
• There is the potential to own your home outright and reduce ongoing expenses in retirement

Cons:

• You must wait until preservation age and meet a release condition
• Withdrawing a lump sum reduces your super balance and future retirement income
• It’s not an option for younger Australians looking to buy earlier in life

This is the most straightforward option, but only available once you’re nearing or in retirement.

Get the Right Advice Before You Act

So, can you buy a house with your super? The answer is yes, but only in specific circumstances. Whether you’re saving for your first home through the FHSS scheme, investing through an SMSF, or planning to buy in retirement, it’s important to understand the rules, risks, and tax implications of each option.

Whether you’re buying your first home, looking into property investment, or need guidance from our expert mortgage brokers, the Inovayt team is here to help you move forward with clarity and confidence.

Speak with one of our brokers to discover what’s possible when it comes to how to use your super to buy a house.