SMSF Commercial Property Loans & Refinancing
Thinking about purchasing commercial property through your Self-Managed Super Fund (SMSF)? Or wondering whether your existing SMSF property loan is still competitive?
SMSF lending is different from traditional property finance. There are additional legal structures, specific lender requirements and important considerations when arranging or refinancing a loan.
At My Mortgage Concierge, we help SMSF trustees across Australia understand their borrowing options, compare suitable lenders and navigate the finance process with confidence.
Whether you're a business owner considering purchasing your business premises through your SMSF or a trustee looking to refinance an existing loan, we're here to help.
Can Your SMSF Borrow to Purchase Commercial Property?
An SMSF may be able to borrow to purchase eligible business real property through a Limited Recourse Borrowing Arrangement (LRBA).
This is a specialised loan structure where the property is generally held in a separate holding trust while the loan remains outstanding.
Unlike traditional property lending, there are specific restrictions on the borrowing arrangement, the property being purchased and how the loan is structured.
Not every commercial property will qualify, and not every lender will accept the same types of properties or fund structures.
We'll help you understand the lending requirements and work alongside your accountant, financial adviser and solicitor to ensure the finance process is carefully coordinated.
Buying Your Business Premises Through Your SMSF
For some business owners, purchasing their commercial premises through an SMSF may be an option worth exploring with their financial and tax advisers.
For example, an SMSF may be able to purchase a commercial property and lease it to a related business, provided the property qualifies as business real property and the arrangement complies with superannuation legislation.
This could include suitable offices, warehouses, industrial premises or other properties used for business purposes.
However, there are important rules around property ownership, leasing arrangements, market rent and the fund's investment strategy.
We'll help you explore the lending options available, while your accountant and financial adviser assess whether the proposed investment is appropriate for your SMSF.
How Much Can Your SMSF Borrow?
SMSF borrowing capacity is assessed differently from a standard property loan.
Lenders consider the financial position of the fund, the proposed property and whether the SMSF can comfortably meet its ongoing commitments.
Before recommending a lender, we'll review:
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Your SMSF balance: Funds available for the deposit, purchase costs and required liquidity.
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Rental income: The property's existing or proposed rental income and how the lender assesses it.
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Super contributions: Contributions that may be considered when calculating borrowing capacity.
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Loan repayments: The fund's ability to service the loan alongside its other expenses.
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Property type: Whether the proposed commercial property meets the lender's requirements.
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Loan features: Available repayment options, interest rates, fees and loan terms.
Different lenders can produce different borrowing outcomes.
Our role is to understand your circumstances, identify suitable lenders and help you make an informed decision about the finance available.
SMSF Loan Refinancing – Is Your Current Loan Still Competitive?
Already have a property loan within your SMSF?
Just like a traditional mortgage, an SMSF loan is worth reviewing periodically to ensure the interest rate, loan features and repayment structure remain appropriate.
SMSF lending has changed considerably over the years, and the lender you originally chose may no longer offer the most suitable option.
Refinancing could potentially help your fund reduce interest costs, improve its loan structure or access features that weren't previously available.
But moving lenders isn't always the best solution.
We'll review your existing arrangements and help you understand whether refinancing is genuinely worthwhile.
What Should You Consider Before Refinancing an SMSF Loan?
When reviewing an existing SMSF loan, we'll look at:
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Your current interest rate: How does it compare with other SMSF lending options?
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Loan features: Would a different repayment structure or an available offset facility better suit your fund?
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Switching costs: What discharge, application, valuation, legal or trust-related costs might apply?
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Property valuation: Does the property's current value support the new lender's loan-to-value ratio requirements?
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Fund liquidity and servicing: Does the SMSF meet the new lender's financial assessment criteria?
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Existing loan structure: Can the borrowing arrangement be refinanced while maintaining compliance with SMSF legislation?
Importantly, refinancing an SMSF loan is not the same as releasing equity from a conventional investment property.
The replacement borrowing must comply with the applicable LRBA requirements, and refinancing generally cannot be used simply to extract equity for another purpose.
We'll work with your professional advisers to help identify any structural or compliance issues before proceeding.
Can You Refinance an Existing SMSF Property Loan?
Existing qualifying SMSF property borrowing arrangements can generally continue and may be refinanced, subject to the relevant legislation and lender requirements.
This includes eligible existing loans established before the August 2026 changes to SMSF property borrowing rules.
Whether refinancing is available will depend on the existing arrangement, the proposed replacement loan and the lender's current policies.
We'll help you assess the options and understand the requirements before making a change.
Why Getting Your SMSF Loan Structure Right Matters
With SMSF lending, the right structure is just as important as finding a competitive interest rate.
Different lenders have different policies regarding loan terms, property types, fund liquidity, contributions and repayment options.
There are also additional legal requirements associated with the holding trust and limited recourse borrowing arrangement.
Getting these details right from the beginning can help avoid unnecessary complications and delays.
That's why we take a collaborative approach, working alongside your accountant, financial adviser and solicitor throughout the lending process.
Our focus is on arranging suitable finance while ensuring the relevant professionals are involved in the legal, tax and investment decisions.
My Mortgage Concierge provides credit assistance and SMSF lending guidance, not personal financial advice regarding SMSF establishment, investment suitability, taxation or legal structures. Please seek advice from appropriately qualified financial, tax and legal professionals before proceeding.
