SMSF Commercial Property Loans
Buying your business premises, or a commercial investment property, inside your self-managed super fund needs a limited recourse borrowing arrangement (LRBA). Fewer lenders write it than write standard commercial debt, and their policies differ sharply. We structure the loan and tender the lenders still active in SMSF commercial lending.
Book a Free 15-Minute Finance AssessmentSMSF Commercial Property Finance at a Glance
Who it's for
- Business owners buying their own premises through their SMSF and leasing it back at market rent
- Trustees buying commercial investment property: office, industrial, retail or medical
- Funds refinancing an existing SMSF loan that is expiring or overpriced
What we structure
- Limited recourse loans with the property held in a separate holding (bare) trust
- Loan term and LVR matched to the fund's rent and contributions
- Refinance of an existing LRBA to a sharper rate or longer term
- Purchase timing coordinated with your accountant, adviser and solicitor
What lenders need
- The SMSF trust deed, holding trust deed and corporate trustee details
- Two years of fund financial statements and returns, plus contribution history
- The contract and lease, with a market-rent assessment if the tenant is related
- Evidence of liquidity left in the fund after deposit, stamp duty and costs
How SMSF Commercial Loans Differ
- Limited recourse. The lender's claim is limited to the property, so LVRs are lower and pricing higher than a standard commercial loan.
- Single acquirable asset. The loan funds one asset. Borrowed money can repair and maintain the property, but not improve it.
- Business real property. An SMSF can buy commercial property from a related party and lease it to a related business at market rent, one of the few related-party exceptions in super law.
- Serviceability. Lenders assess rent plus contributions, and test whether the fund can carry the loan if contributions stop.
Get the Order Right Before You Sign
We arrange the finance. Whether to buy property in super, and the fund's investment strategy, is a decision for you with your accountant or licensed financial adviser. We work alongside them so the holding trust, the contract and the loan are set up in the right order, because a contract signed in the wrong name can be hard to fix. If you're buying outside super, see commercial property loans.
SMSF Commercial Property FAQs
Can my SMSF buy my business premises?
Generally, yes. Commercial property used wholly and exclusively in a business (business real property) can be bought from a related party and leased to your business, provided it is on arm's-length terms at market rent. Your accountant or adviser confirms eligibility for your fund.
What LVR can an SMSF borrow for commercial property?
Lower than a standard commercial loan, and it varies by lender and property type. We test the achievable LVR across the panel before you sign a contract.
Do the major banks still lend to SMSFs?
Many of the major banks have pulled back from SMSF lending, so the market is largely specialist and non-bank lenders plus some second-tier banks. Policy changes often, which is why tendering matters.
Can I refinance an existing SMSF loan?
Yes. If your current LRBA is expiring, overpriced or on a short term, we can tender a refinance. The holding trust usually stays in place.
Buying Commercial Property in Your SMSF?
Send the property details, the fund's latest financials and your target settlement date. We'll tell you which lenders will write it, at what LVR, before you commit to a contract.
Book a free, no-obligation consultation with us today
Book a Free 15-Minute Finance AssessmentGeneral information only. It is not credit, financial or tax advice, and it does not consider your fund's circumstances. Speak to your accountant or a licensed financial adviser before your SMSF borrows. Glenclair Financial is an independent commercial debt brokerage and authorised credit representative.