SMSF commercial lending, with a clear read on what your fund can actually borrow.
- Indicative assessment within 2 business days, settlement typically 2 to 8 weeks
- Loans from $100K to $5M
- SMSF trustees buying commercial premises, including your own business premises
- Finance matched to a limited recourse borrowing arrangement your adviser has set up
- Full-doc (tax returns) and alt-doc (BAS, bank statements or an accountant's letter instead) options across the specialist SMSF lender panel
A self-managed super fund can borrow to buy commercial property, including the premises your own business trades from. It is done through a limited recourse borrowing arrangement, a structure where the lender's claim is limited to that one property, although most lenders also ask members for a personal guarantee. The rules are strict and the lender panel is much narrower than for ordinary commercial lending. What we do is the finance: matching your fund to a lender that will write the loan and managing it to settlement. Whether an SMSF purchase is appropriate for you is a question for your accountant and licensed adviser, not for us.
Who we can help access finance
- Business owners buying their own trading premises through their SMSF and paying rent to the fund rather than a landlord.
- Fund trustees purchasing an office, warehouse, or retail property as a long-term income asset.
- Professionals and practitioners acquiring consulting rooms or a suite for their practice.
- Trustees refinancing an existing limited recourse borrowing arrangement to a sharper rate or a longer term.
- Funds where the members are self-employed and contributions are strong but personal financials are complex.
- Trustees who have had an SMSF application stall elsewhere because the lender panel for this product is narrow.
- Buyers working to a settlement date who need certainty on whether the fund can be funded at all.
How SMSF Commercial Lending Works
The fund establishes a separate holding trust, sometimes called a bare trust, which holds legal title to the property while the fund holds the beneficial interest. The fund borrows to complete the purchase and the lender takes security over that single property only. The limited recourse feature means that if the loan defaults, the lender can pursue the property but not the fund’s other assets. Rent from the property and member contributions service the loan. The loan-to-value ratio (LVR), the loan as a share of the property's value, is lower than for ordinary commercial lending, commonly 60% to 70%, and lenders apply liquidity requirements so the fund retains a buffer after settlement. Joseph Farhat and his team review the fund, the property, and the structure, match the scenario to a lender that writes this product, and manage the application through to settlement.
To be clear about our role: we do not give financial, superannuation, or tax advice, and we do not advise on whether to buy property through your fund. Your accountant, your SMSF adviser, and your fund’s documentation govern that decision. We arrange the finance once it is made.
What Lenders Assess for SMSF Commercial Lending
Fund structure
the trust deed must permit borrowing, and the holding trust must be correctly established before settlement. Errors here stop deals at the last minute.
Liquidity after settlement
lenders require the fund to retain a cash buffer, commonly 5% to 10% of the fund balance, so it can meet obligations if the property is vacant.
Serviceability
assessed on rental income plus member contributions, with lenders applying a buffer to both. Contribution history matters more than a forecast.
The property
standard commercial in metro locations is straightforward. Specialised assets reduce the LVR sharply and narrow an already small lender panel.
Related party leasing
business real property leased back to a member’s own business is permitted, but the lease must be at market rent and properly documented.
Member profile
age and proximity to retirement affect the loan term a lender will offer.
Compliance history
the fund’s audit history and whether contributions and lodgements are current.
The SMSF Lending Process: What to Expect
- Confirm with your accountant and SMSF adviser that the purchase suits your fund and that the trust deed permits borrowing. That step comes before finance, not after.
- Talk to Joseph Farhat and his team about the fund balance, the property, and the expected rent. You will get an honest read on whether the fund is fundable before you go to contract.
- Provide the basics: the fund trust deed, recent fund financials and member statements, contribution history, and the contract or property details.
- We match the scenario to the lenders on the panel that genuinely write SMSF commercial lending. This panel is small, so approaching the wrong lender wastes weeks you may not have inside a contract.
- The lender issues an approval, the holding trust is established by your adviser, a valuation is completed, and the loan settles alongside the property purchase. We stay in contact through the term.
Indicative Finance Options
| Lender Type | Indicative Rate | Max LVR | Typical Loan Range | Loan Term | Speed to Funding |
|---|---|---|---|---|---|
| Bank | From ~7.25% p.a. | Up to 65% | $250K to $5M | 15 to 25 years | 4 to 8 weeks |
| Non-Bank Lenders | From ~8.75% p.a. | Up to 70% | $100K to $5M | 10 to 30 years | 2 to 4 weeks |
| Private Finance | Rarely used for SMSF lending, and only where the arrangement remains limited recourse. Available for unique scenarios only. | ||||
Indicative figures only. Actual rates and terms depend on your project, financial position, property location, and lender assessment at the time of application. Rates are subject to change.
Why borrowers choose Settled With Joe for SMSF commercial lending
We represent you, not the lender
Joseph Farhat and his team act in your interest from the first conversation through to settlement.
The lender panel is narrow
far fewer lenders write SMSF commercial lending than ordinary commercial lending, and knowing which ones currently have appetite saves weeks.
Structure errors stop deals
the trust deed and holding trust have to be right before settlement, and we will flag what the lender will check before you are up against a date.
Liquidity requirements catch people out
funds are often declined for the buffer rather than the serviceability, and that is knowable before you go to contract.
One conversation, not five applications
with few lenders in this market, each application uses up one of a small number of options, and each credit enquiry is recorded on your file.
90+ lenders on one panel overall
bank, non-bank, and specialist, so if the fund cannot support the purchase we can look at whether it works outside super instead.
Our role is the finance
the superannuation, tax, and structuring decisions sit with your accountant and licensed adviser.
Usually no direct cost to you
as a broker we are typically paid by the lender on settlement.
An honest answer early
if you are looking at a property, talk to us before you sign and we will tell you what is realistically achievable.
Frequently asked questions
What is SMSF commercial lending?
It is a loan taken by a self-managed super fund to purchase commercial property, structured as a limited recourse borrowing arrangement. A separate holding trust takes legal title while the fund holds the beneficial interest, and the lender takes security over that one property only. If the loan defaults, the lender can pursue the property but not the fund’s other assets. Rent and member contributions service the loan.
Can my SMSF buy the premises my business trades from?
Yes. Business real property is one of the few asset classes an SMSF can acquire from, and lease back to, a related party. The premises must be used wholly and exclusively in a business, and the lease must be on genuine commercial terms at market rent with proper documentation. It is one of the most common reasons business owners use this structure. Your accountant and SMSF adviser will confirm it suits your fund; we arrange the finance.
How much can my SMSF borrow?
Most lenders advance up to 65% to 70% of the property value for commercial property held in an SMSF, which is lower than ordinary commercial lending. Loan sizes commonly run from $100,000 to $5,000,000. The practical limit is usually the fund balance rather than the property, because lenders require a liquidity buffer to remain in the fund after settlement. Joseph Farhat and his team will review the fund and give you an indicative capacity before you go to contract.
How much does my fund need to have in it?
Beyond the deposit and costs, lenders require the fund to retain a liquidity buffer after settlement, commonly 5% to 10% of the fund balance, so it can meet loan repayments and expenses if the property sits vacant. Many funds are declined on this requirement rather than on serviceability. It is worth checking the number before you commit to a purchase, because it is entirely knowable in advance.
How fast can an SMSF loan settle?
Non-bank SMSF lending commonly takes 2 to 4 weeks and bank lending 4 to 8 weeks. The structure adds steps that ordinary commercial lending does not have: the holding trust must be established correctly and the lender will review the trust deed alongside the fund financials. If you are working to a settlement date in a contract, talk to us before you sign so the timeline can be built backwards from it.
Can I get SMSF lending with low-doc or no-doc?
Genuine low-doc SMSF lending is limited, because the lender assesses the fund rather than you personally and the fund financials are the core of the application. What does flex is the assessment of member income: some lenders on the panel weight contribution history and rental income more heavily than personal tax returns, which suits self-employed members whose personal financials are complex. No-doc SMSF lending is not a mainstream product. Joseph Farhat and his team will tell you what each lender requires.
Do you work with borrowers with bad credit?
Yes, we do. A default or past arrears on a member’s personal file does not automatically rule the fund out, and it is not something we will make you feel awkward about. That said, of the products we cover, this is the one where credit history matters most, because the lender panel is small and those lenders are conservative. We will be straight with you about the likely impact rather than let you find out through a decline, and telling us early lets us approach the right lender first. Joseph Farhat and his team will tell you honestly what is achievable before you apply anywhere.
What does SMSF commercial lending cost?
Bank SMSF lending starts from around 7.25% per annum and non-bank from around 8.75%, both above equivalent ordinary commercial rates because of the structure and the limited recourse feature. Beyond the rate, budget for the establishment of the holding trust, legal review of the trust deed, a commercial valuation, and lender establishment fees. Your adviser will also charge for the structuring work. Joseph Farhat and his team will set out the finance costs before you proceed.
Why work with Settled With Joe to arrange your SMSF commercial loan?
Because the lender panel for this product is small, and knowing which lenders currently write it and what they require is most of the work. Most of the people we help are self-employed business owners and company directors buying their own premises inside their fund, often with a settlement date already agreed. Those situations are not unusual to us and there is no judgement in the conversation. What matters is the fund balance, the liquidity buffer, the rent, and whether the structure is correctly established. Funds get declined for the buffer or a trust deed issue far more often than for the property itself, and all of that is knowable before you go to contract. Our broader panel covers 90+ bank, non-bank, and specialist lenders, so if the fund cannot support the purchase we can look at whether it works outside super instead. We are based in Sydney and work with borrowers Australia-wide. Joseph Farhat and his team will tell you honestly and early whether we can help and what is realistically achievable in your timeframe.
Do you give financial advice?
No. We do not guide you on your finances, nor give financial advice. We focus on outcomes and solutions of presenting your unique scenario to the right lender so you can access funding in a timely and compliant manner.
Do you help with SMSF commercial lending outside Sydney?
Yes. Settled With Joe is based in Sydney and arranges SMSF commercial lending Australia-wide, covering both metro and regional areas. We work with clients in Sydney, Melbourne, Brisbane, Perth, Adelaide, and Canberra, as well as regional areas including Newcastle, Wollongong, Geelong, Gold Coast, Sunshine Coast, and Toowoomba. Location matters on this product: LVRs are commonly reduced for regional and specialised security, and the lender panel narrows further. Joseph Farhat and his team will identify which lenders on the panel are the best fit for your fund and property.
