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SMSF Commercial Loans

Commercial property investment through a Self-Managed Superannuation Fund. Corporate trustee borrowers only. From 7.54% p.a. No clawback.

Overview

Better Choice’s SMSF Commercial product provides financing for SMSF members looking to invest in commercial property through their fund — from shop fronts and offices to industrial units, factories, and medical suites. Available to corporate trustee SMSF borrowers only, with a separate property trustee company required under an LRBA structure.

With rates from 7.54% p.a., a maximum LVR of 80%, and loan terms from 3 to 30 years, our SMSF Commercial product supports a broad range of commercial property investment strategies within superannuation. The product is available for purchase and refinance — cash out is not available.

Better Choice does not clawback commissions on SMSF Commercial loans, and a minimum SMSF net tangible asset position of $100,000 ensures the fund is appropriately capitalised for the investment.

Features

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Corporate trustee required

The SMSF must have a corporate trustee structure with all beneficiaries as directors. A separate property trustee company is required as the mortgagor.
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Rates from 7.54% p.a.

Competitive P&I rates from 7.54% p.a. for LVR ≤ 50%. IO rates from 7.74% p.a. at the same tier.
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Up to 80% LVR

Maximum 80% LVR for Cat 1 postcodes. Maximum $5m at ≤70% LVR (Cat 1), $3.5m at ≤75% LVR (Cat 1), $2.75m at ≤80% LVR (Cat 1).
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No clawback

Better Choice does not clawback broker commissions on SMSF Commercial loans, regardless of when the loan repays.
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5% liquidity requirement

Post-settlement, the SMSF must maintain minimum 5% of total debts in liquid assets — ensuring the fund remains appropriately funded.
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Wide acceptable commercial security

Shop fronts, offices, industrial units, factories, warehouses, mixed residential and commercial use, and medical/professional suites accepted.

Have an SMSF commercial scenario?

Submit your client's SMSF and property details and our commercial team will assess eligibility and come back to you promptly.
Submit a scenario

Helpful information

Product and rates guide

Full SMSF Commercial product details, trustee requirements, and eligible security types.
Download

Application Form

Apply for a commercial SMSF loan with this form
Download

Application checklist

Documents required for an SMSF Commercial application.
Download

Frequently asked questions

What trustee structure is required?

The SMSF trustee (borrower) and the property trustee (mortgagor) must be separate corporate trustee companies. All directors, shareholders, and beneficiaries of both companies must provide unconditional joint and several personal guarantees.

What types of commercial property are eligible?

Acceptable property types include shop fronts, offices, industrial units, factories, warehouses, mixed residential and commercial use, and medical/professional suites. Cash out and equity release are not acceptable purposes.

What is the minimum fund balance and liquidity requirement?

The SMSF must hold a minimum of $100,000 in net tangible assets at application. Post-settlement, the SMSF must hold a minimum of 5% of total debts in liquid assets.

What is the maximum LVR and loan amount?

Up to 80% LVR for Category 1 security locations (75% Cat 2, 70% Cat 3). Maximum loan amounts up to $5.0m for Category 1 at 65% LVR.

Is there a clawback on commissions?

No. There is no clawback on SMSF Commercial commissions.

What loan terms are available?

Loan terms of 3–30 years. Interest-only periods of 1–5 years are available. An annual fee of $395 applies.

Can a SMSF Commercial loan be used for equity release?

No. The SMSF Commercial product is for purchase or refinance of a commercial property only. Cash out and equity release are not permitted.

Things you should know

Rates indicated are for illustrative purposes only, are subject to change without notice, and do not constitute an offer of credit. Actual rates are determined at the time of assessment. Eligibility criteria, fees, and charges apply. This information is prepared by Better Choice Home Loans and is intended for use by licensed mortgage brokers only. It is not to be distributed to consumers or used as the basis for consumer credit advice. Better Choice Home Loans ABN 79 095 728 868 Australian Credit Licence 378333.