Hi Cath

You can use funds in your SMSF for the deposit and then borrow directly from a bank. You can also borrow in your own name and then on-lend the funds to the super fund as a related party loan. The interest rates and terms are different between the two options. It can get quite complex legally as you  will need to have a holding trust sctructure in place between the lender and the SMSF so other super assets are protected in case of default. This requires legal advice and the use of an experienced SMSF adviser. You need to take into account other issues like ensuring enough cash is in the super fund to cover expenses, retirement planning and investment strategy of the fund.
I have an SMSF adviser on one side of me and a lending expert on the other who would be happy to discuss these issues in more detail with you. My email is [email protected]

Good luck
Ben Fox