Put Your Super to Work in Commercial Property
SMSF lending can help eligible self-managed super funds acquire commercial property, providing an opportunity to invest in an asset aligned with your fund’s long-term retirement strategy
Self-managed super funds (SMSFs) can provide investors with greater control over how their retirement savings are invested. For eligible commercial property purchases, an SMSF may be able to borrow through a Limited Recourse Borrowing Arrangement (LRBA), allowing the fund to acquire an asset without using all of its available cash.
At Ironbark Group, we help clients understand the finance options available for SMSF property investment, connect with specialist lenders and navigate the complexities involved in structuring an SMSF loan.
SMSF lending is highly regulated and requires careful consideration of your fund’s investment strategy, cash flow, compliance obligations and long-term retirement objectives. Our role is to help you understand the lending side of the transaction and work with your accountant, financial adviser and other professional advisers where required.
WHAT HAS CHANGED FOR SMSF PROPERTY LENDING?
From 10 August 2026, new Limited Recourse Borrowing Arrangements cannot be used by SMSFs to purchase residential real estate.
This means new SMSF property lending is now focused on eligible business real property, such as commercial, industrial, retail and office premises, subject to the relevant superannuation and lending requirements.
SMSFs can still purchase residential property using their own available cash where the investment complies with superannuation law. However, new borrowing cannot be used to acquire residential investment property through an LRBA.
Existing residential LRBAs that were entered into, or were subject to a binding contract, before 10 August 2026 may continue under the applicable grandfathering arrangements.
If you already have an SMSF property loan and are considering refinancing, restructuring or changing your investment strategy, it is important to obtain appropriate professional advice before making changes.
SMSF COMMERCIAL PROPERTY LENDING
For business owners, SMSF commercial property lending can provide a potential way for a super fund to acquire eligible business premises.
For example, an SMSF may potentially acquire:
- Commercial office premises
- Retail premises
- Industrial property
- Eligible business premises
- Other property that meets the requirements for business real property
Where the property is used by a related business, additional superannuation rules and arm’s-length requirements apply. The structure needs to be established correctly from the outset.
Ironbark Group can help you understand the lending requirements and work through the finance structure with your professional advisers.
WHY CHOOSE IRONBARK GROUP?
SMSF lending involves more than simply finding a competitive interest rate. The loan structure, property, SMSF strategy and lender requirements all need to work together.
As a specialist mortgage and commercial finance broker, Ironbark Group can:
Explain the lending considerations associated with SMSF property finance
Help assess whether your proposed commercial property is suitable for SMSF lending
Connect you with lenders experienced in SMSF commercial property finance
Assist with the structure of the lending and Limited Recourse Borrowing Arrangement
Help coordinate the finance application and documentation process
Compare available loan structures and lender requirements
Work alongside your accountant, financial adviser and other professional advisers where appropriate
Provide ongoing support if your lending requirements change
Our approach is focused on understanding your broader objectives rather than simply finding a loan.
READY TO INVEST THROUGH YOUR SMSF WITH CONFIDENCE?
SMSF property lending can be complex and is not suitable for every fund.
Before proceeding, you should consider your SMSF’s investment strategy, available capital, expected rental income, loan repayments, ongoing property costs, liquidity requirements and the risks associated with concentrating a significant portion of your retirement savings in one asset.
Professional advice is also important. Your accountant or financial adviser can help determine whether the proposed investment is appropriate for your SMSF and compliant with superannuation legislation. Ironbark Group can then help you understand and arrange the finance component.
Frequently Asked Questions
What is an SMSF loan?
An SMSF loan is a loan taken by a self-managed super fund through a Limited Recourse Borrowing Arrangement (LRBA) to acquire an eligible asset, subject to the requirements of superannuation law.
Under the current rules, new LRBAs cannot be used to purchase residential real estate. New SMSF property lending is therefore primarily relevant to eligible business real property.
Can an SMSF borrow to buy residential property?
Not for a new residential property purchase using an LRBA under the rules applying from 10 August 2026.
SMSFs can still purchase residential property using their own available cash, provided the investment complies with superannuation law.
Existing residential LRBAs that meet the applicable grandfathering requirements may continue.
Can an SMSF borrow to buy commercial property?
Yes. Borrowing through an LRBA can still be used to acquire eligible business real property, subject to superannuation legislation, the SMSF’s investment strategy and the lender’s requirements.
Commercial property may include eligible office, retail and industrial premises.
Can my SMSF buy the property my business operates from?
Potentially. An SMSF may be able to acquire eligible business real property and lease it to a related business, provided the arrangement meets the relevant superannuation, valuation, leasing and arm’s-length requirements.
Your accountant or financial adviser should confirm that the proposed arrangement is compliant before proceeding.
Can my SMSF buy commercial property outright without borrowing?
Yes. An SMSF can use available fund cash to purchase an investment asset, subject to the fund’s investment strategy and superannuation rules.
The decision to borrow or purchase outright should take into account the fund’s liquidity, investment strategy, cash flow and broader retirement objectives.
Can I use my SMSF to buy a property that I live in?
Generally, no. SMSF investments must comply with strict rules around investments involving members and related parties.
Residential property purchased by an SMSF cannot generally be used as a private residence by members or related parties.
How much deposit does an SMSF need for a commercial property loan?
The amount of equity required varies depending on the lender, property type, loan structure, fund position and other factors.
There is no single deposit requirement that applies to every SMSF commercial property loan. Ironbark Group can assess your circumstances and identify lenders whose requirements may be appropriate.
Are SMSF loans more expensive than standard commercial loans?
They can be. SMSF lending involves specialist structures, additional documentation and compliance considerations, which can affect interest rates, fees and establishment costs.
The overall cost will depend on the lender, loan structure, property and your individual circumstances.
Can I refinance an existing SMSF property loan?
Potentially. Existing SMSF lending may be able to be refinanced, although the rules depend on the type of arrangement, the property and the circumstances of the refinance.
If you have an existing SMSF loan, it is important to obtain appropriate professional advice before changing the arrangement.
Can I renovate a property purchased through an SMSF loan?
There are restrictions on how borrowed funds can be used in an LRBA. Borrowing cannot simply be used to fund improvements to an SMSF property.
Any proposed renovations or improvements should be assessed before work begins to ensure the arrangement complies with superannuation law and the terms of the loan.
Does an SMSF loan require a personal guarantee?
This depends on the lender and loan structure. Some SMSF lenders may require personal guarantees or other forms of security from members or trustees.
The limited recourse nature of the arrangement relates to the lender’s recourse to the asset held under the borrowing arrangement and does not mean a personal guarantee can never be required.
How can Ironbark Group help with SMSF lending?
Ironbark Group can help you assess your commercial property finance options, compare specialist lenders and navigate the finance application process.
We can work alongside your accountant, financial adviser and other professional advisers to help ensure the lending structure aligns with your broader SMSF strategy.
What Our Clients Say
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PO Box 883, Upper Coomera QLD 4209
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4 Dalton St,
Upper Coomera QLD 4209
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Griffith University, Link Building,
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