Major banks have largely stepped away from SMSF loans for three main reasons: Complexity: SMSF lending requires specialised processes and expertise, increasing operational cost for banks. Small market share: SMSF loans represent a relatively small portion of the overall loan market, making it less attractive for larger banks. Resource allocation: Banks prefer to focus their resources on more profitable and less complex loan products that serve a larger customer base. Despite this, many smaller lenders still offer SMSF loans with great terms for investors!