SMSF Commercial Property Loans (2026): How They Work, LVR, Lenders and the New Rules

SMSF Commercial Property Loans (2026): How They Work, LVR, Lenders and the New Rules

Can you still get an SMSF commercial property loan in 2026?

Yes. An SMSF can still borrow to buy commercial premises, and an SMSF commercial property loan remains a legitimate, still permitted way for a business owner to hold their own premises inside super. New SMSF borrowing is now limited to business real property, which means commercial premises used wholly and exclusively in the running of a business, such as a warehouse, a shopfront, a consulting room or an office suite.

What has ended is new residential SMSF borrowing. An SMSF can still buy residential property outright with its own cash; it simply cannot borrow to do so. And any existing SMSF loan is grandfathered and can be refinanced.

The blunt headline you may have seen, that SMSF property loans are finished, is not correct. The right answer depends entirely on which situation your fund is in.

How does an SMSF commercial property loan work?

The fund borrows through a limited recourse borrowing arrangement, or LRBA: that is how super fund borrowing for commercial property is structured. While there is a loan over the property, the fund does not hold it directly. Instead the property sits in a separate holding trust, sometimes called a bare trust, with the SMSF as beneficial owner.

• What the lender can claim. If something goes wrong, the lender can pursue the property in the holding trust. The lender’s recourse is limited to that single asset, which is the whole point of the structure.
• What the lender cannot claim. The fund’s other assets, which are protected.

That protection is why the paperwork is more involved than an ordinary purchase. New to the whole structure? Our plain-English walkthrough of how to buy property with your super, step by step, starts from the fund itself.

Which lenders offer SMSF loans for commercial property?

Specialist and non-bank lenders. No Big Four bank currently offers SMSF LRBAs, so the field for commercial SMSF loans is made up of non-bank and specialist lenders who understand the structure.

Four non-bank lenders that publish SMSF commercial loan terms on their own sites are Liberty, Bluestone, Pepper Money and La Trobe Financial, with maximum LVRs of 75 to 80 per cent across the four lenders in the table below. As published on 11 October 2026, Liberty prints loans from $100,000 to $4,000,000 with interest only available and no loan term stated; Bluestone up to $3 million over 30 years with interest only up to 5 years; Pepper Money up to $5M for business real property over up to 30 years with interest only up to 5 years; and La Trobe Financial from $100,000 to $10,000,000 over 30 years with interest only up to 5 years.

Liberty marks its page effective 9 October 2026 and Pepper Money dates its information 9 October 2026; Bluestone dates its rates page 7 October 2026 and its product page 17 August 2026; La Trobe Financial shows no date. Liberty states that higher rates may apply, that its rate depends on its assessment criteria and the loan to value ratio, and that its maximum LVR may vary with the property type. La Trobe Financial states that maximum loan amounts and LVRs may vary based on the security offered and that its rate depends on the loan amount and the risk grade of the borrower. Pepper Money and Bluestone lend to funds with a corporate trustee only. Bluestone’s product page states that its SMSF lending is for investment purposes and that the property cannot be occupied by the borrower or a related party. Bluestone bases its comparison rate on a secured loan of $150,000 over 25 years and on the maximum interest only period for the product. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Published rates are starting points: the rate on a file depends on the fund, the security, the loan size and the loan to value ratio.

The SMSF lending market has always been specialist, and it moves. The difference between a workable loan and a dead end often comes down to knowing which specialist lenders are active, what each one wants to see, and how to present your fund. We are former bankers, so we know both how lenders assess these deals and where the good SMSF lenders actually sit.

What is the maximum LVR on an SMSF commercial loan, and how much does the fund need?

Maximum loan-to-value ratios run up to 80 per cent on commercial security at Liberty and Bluestone, as published on 11 October 2026, with the fund providing the balance from its own cash. La Trobe Financial prints 75 per cent on loans up to $5,000,000 and 70 per cent up to $10,000,000, and Liberty notes that its maximum may vary with the property type. As a rough guide, most lenders want a minimum SMSF balance in the region of $200,000 to $300,000, plus a liquidity buffer left in the fund after the purchase so it can meet expenses, insurance and any pension payments. The minimums lenders print are entry points and sit at or below that guide: Pepper Money asks for minimum net assets of $150,000 at the time of application and Bluestone for $200,000 before the purchase or refinance, while Liberty says its commercial SMSF loan is not limited by the size of the fund. Not every lender tests liquidity: Pepper Money states that a liquidity test is not required and Bluestone that it has no minimum SMSF liquidity requirement, each as published on 11 October 2026. The buffer still matters, because the fund has to meet its repayments, expenses, insurance and any pensions from its own cash.

Serviceability is assessed on the rent the property will earn plus the ongoing contributions flowing into the fund. Lender figures are as published, the fund balance guide is indicative, and all are subject to each lender’s criteria.

Indicative only and subject to change. Actual terms depend on the lender, the property and your fund. This is general information, not a loan offer or credit advice.

Outside super, our commercial property loan deposit and LVR guide covers how the asset type sets the ceiling.

What are SMSF commercial property loan interest rates and costs?

SMSF commercial property loan interest rates are set per lender, case by case, and move with the market. As published on 11 October 2026, rates start from 7.90 per cent p.a. at Liberty and from 7.99 per cent p.a. at Bluestone (comparison rate from 8.28 per cent p.a. on a $150,000 secured loan over 25 years). Bluestone bases its comparison rate on a secured loan of $150,000 over 25 years and on the maximum interest only period for the product. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Liberty shows no comparison rate for this loan. Pepper Money prints one variable range for all its SMSF loans, 7.34 to 10.24 per cent p.a. Published rates are starting points: the rate on a file depends on the fund, the security, the loan size and the loan to value ratio. Actual terms depend on the lender, the property and your fund.

The structure itself costs money to set up and run. There is no cost to you for our help, because we are paid by the lender, and our recommendation has to meet the Best Interests Duty.

For context on how commercial pricing works outside super, including the levers that set every margin, see our commercial property loan rates guide.

Can you buy your own business premises through your SMSF?

Yes. Business real property is the key exception to superannuation’s in-house asset rules, so an SMSF can own commercial premises and lease them to a member’s own business, provided the lease is genuinely at arm’s length with market rent.

Ordinarily an SMSF is tightly limited in how much it can invest in, or transact with, parties related to its members. Commercial premises used wholly and exclusively in a business are carved out of that restriction. Done properly, the rent your business pays flows into your own retirement savings rather than to an unrelated landlord, and the fund holds a tangible commercial asset. The arrangement remains permitted after 10 August 2026, because it involves borrowing to buy commercial rather than residential property.

The condition that makes or breaks it is arm’s length. The lease has to be genuine: a proper written agreement, rent set at true market rates, paid on time, on commercial terms. The ATO watches related-party leases closely, and a mates-rates arrangement or missed rent can create serious compliance problems. It also has to suit your wider financial picture, which is exactly the sort of question a licensed financial adviser and your accountant should sign off before you commit. Our role is to arrange the lending once that strategy is set.

What changed for SMSF property borrowing in 2026?

Two things. From 10 August 2026, a new SMSF can no longer borrow to buy residential property; new SMSF property borrowing is restricted to business real property, meaning commercial premises. Separately, from 1 July 2026 the new Division 296 tax applies an extra charge on super earnings for individuals with a total super balance above $3 million.

Legislation that received Royal Assent on 26 June 2026 restricts new SMSF property borrowing to business real property only, under section 67A(2)(c) of the SIS Act. The date that matters is the contract date, not the settlement date. To be grandfathered under the old rules, the contract to buy the residential property must have been exchanged before 10 August 2026.

If your fund already holds a residential property under an existing LRBA, nothing forces you to unwind it. Existing loans continue on their terms. Our deadline explainer covers grandfathering, the contract-date rule and refinancing.

What is the Division 296 tax, and who does it affect?

Division 296 is a new tax on superannuation earnings that is now law and applies from 1 July 2026, so 2026 to 2027 is its first income year. It applies to individuals whose total super balance is above $3 million. The first assessment is based on balances at 30 June 2027, and the first bills are expected from the 2027 to 2028 year onward. It does not stop anyone borrowing, but it changes the maths of holding very large balances inside super.

Under the law as passed, the extra tax is an additional 15 per cent on the earnings attributable to the portion of a balance above $3 million, and a further 10 per cent, on top of that 15 per cent, on the earnings attributable to the portion above $10 million. It sits on top of the tax a fund already pays, and it applies to the individual rather than only to an SMSF, so it can affect anyone with a large balance in any type of super fund.

Calculated on a realised-earnings basis, thresholds indexed over time. First assessment at 30 June 2027, first bills expected from 2027 to 2028. General information only, not tax advice; confirm your position with your accountant.

How it applies to you personally is a question for your accountant and a licensed financial adviser, not for a broker.

Can you refinance an existing SMSF loan?

Yes. Existing SMSF loans, including residential ones taken out before 10 August 2026, are grandfathered and can be refinanced to a different lender or a better rate, provided the refinanced balance does not increase. The 2026 changes restrict new borrowing, they do not cancel existing loans.

With no Big Four bank competing in the space, an SMSF loan that has sat untouched for a few years is often on terms that are no longer competitive, and reviewing it can free up cash flow inside the fund. We regularly help trustees refinance both residential and commercial SMSF loans, and refinancing an SMSF loan is a normal part of what we arrange.

Our guide to refinancing an SMSF loan after the ban covers the pathways and eligibility. You can also read more in our guides to refinancing a commercial property loan and business loan refinancing.

What are the key SMSF lending rules and risks?

An SMSF must hold property solely to provide retirement benefits (the sole-purpose test), deal at arm’s length, and, for residential property, never let a member live in it or rent it to a related party. SMSF borrowing is complex, less liquid and less flexible than a personal loan. A few rules and risks matter more than the rest:

• The sole-purpose test. The property must be held solely to provide retirement benefits to members. It cannot deliver a present-day benefit to you or your family.
• Arm’s length dealing. Every transaction, including any lease back to a related business, must be on genuine commercial terms at market rates.
• No living in it, no related-party residential tenants. A member or relative cannot live in an SMSF-owned residential property, or rent it. This is why residential SMSF property has always been an investment, never a home, and it is another reason commercial premises are often the cleaner fit.
• Liquidity. The fund has to keep enough cash to meet loan repayments, expenses, insurance and any pensions. Tying up too much in a single property is a real risk.
• Less flexibility. Property inside super is harder and slower to sell than shares, the structure costs money to set up and run, and unwinding it is not trivial.

None of that means an SMSF loan is a bad idea. It means it is a considered decision that has to fit your retirement plan, your tax position and your fund’s cash flow. A broker arranges the finance; the question of whether an SMSF and a property purchase suit you at all belongs with a licensed financial adviser and your accountant.

How does Everstone arrange commercial SMSF loans?

Arranging SMSF commercial property loans for business owners and investors is a service we offer. We are finance and mortgage brokers: we look at your fund, the property and the specialist lenders who cover SMSF lending, tell you whether it stacks up, and line up the loan once the strategy is agreed.

Just as importantly, we know our lane. Everstone Finance arranges the lending. We do not advise you on whether to set up an SMSF, whether to buy property in super, or on your tax and retirement strategy: that is licensed financial advice, and it belongs with your adviser and accountant. We are happy to work alongside them and translate the finance side into plain English.

If you also want the broader picture, our guide to commercial property loans in Australia is a good place to start.

SMSF commercial loans: frequently asked questions

Can you still buy commercial property in an SMSF?

Yes. From 10 August 2026 a new SMSF can no longer borrow to buy residential property, but it can still borrow to buy business real property, meaning commercial premises used wholly and exclusively in a business. An SMSF can also still buy residential property outright with its own cash, and any loan already in place before the change is grandfathered.

What is the maximum LVR on an SMSF commercial property loan?

Maximum loan-to-value ratios run up to 80 per cent on commercial security at Liberty and Bluestone, as published on 11 October 2026, with the fund providing the balance from its own cash. Lender figures are as published and subject to the criteria of each lender. Actual terms depend on the lender, the property and your fund. This is general information, not a loan offer or credit advice.

What are SMSF commercial property loan interest rates?

SMSF rates are set per lender, case by case, and move with the market. As published on 11 October 2026, rates start from 7.90 per cent p.a. at Liberty and from 7.99 per cent p.a. at Bluestone (comparison rate from 8.28 per cent p.a. on a $150,000 secured loan over 25 years). Published rates are starting points: the rate on a file depends on the fund, the security, the loan size and the loan to value ratio. Actual terms depend on the lender, the property and your fund. This is general information, not a loan offer or credit advice.

How much do I need in my SMSF to buy commercial property?

As a rough guide, specialist lenders look for a minimum SMSF balance in the region of $200,000 to $300,000, plus a liquidity buffer left in the fund after settlement to cover repayments, expenses, insurance and any pension payments. The minimums lenders print are entry points and sit at or below that guide: Pepper Money asks for minimum net assets of $150,000 at the time of application and Bluestone for $200,000 before the purchase or refinance, while Liberty says its commercial SMSF loan is not limited by the size of the fund, each as published on 11 October 2026. Maximum LVRs run up to 80 per cent on commercial security at Liberty and Bluestone, so the fund provides the balance. Lender figures are as published, the fund balance guide is indicative, and all are subject to the criteria of each lender. This is general information, not credit advice.

What is an SMSF commercial mortgage?

An SMSF commercial mortgage is a loan a self-managed super fund takes out to buy business real property, meaning commercial premises used wholly and exclusively in the running of a business, such as a warehouse, a shopfront, a consulting room or an office suite. No Big Four bank currently offers these loans, so the lenders are specialist and non-bank. This is general information, not credit advice.

How does super fund borrowing for commercial property work?

The fund borrows through a limited recourse borrowing arrangement. The property is held in a separate holding trust, sometimes called a bare trust, with the SMSF as beneficial owner. The recourse of the lender is limited to that single asset: if something goes wrong, the lender can pursue the property in the holding trust but not the other assets of the fund. Serviceability is assessed on rent plus ongoing contributions.

Do the big four banks offer commercial SMSF loans?

No. No Big Four bank currently offers SMSF limited recourse borrowing arrangements. The market is served by specialist non-bank lenders who understand the structure, which is why an older SMSF loan is often no longer competitive and worth reviewing. Everstone arranges SMSF commercial lending and refinancing with these specialist lenders.

Can I buy my business premises through my SMSF?

Yes, and it remains one of the few SMSF borrowing strategies the 2026 changes leave fully intact. Business real property is an exception to the in-house asset rules of super, so your SMSF can own your commercial premises and lease them back to your business, provided the lease is a genuine written agreement on commercial terms, with rent set at true market rates and paid on time. Whether it suits you is a question for your financial adviser and accountant.

Can I refinance an existing SMSF loan?

Yes. Existing SMSF loans, including residential ones taken out before 10 August 2026, are grandfathered and can be refinanced to a different lender or a better rate, provided the refinanced balance does not increase. Because no Big Four bank operates in this market, an older SMSF loan is often no longer competitive, so a review can be worthwhile. Refinancing SMSF loans is a service Everstone arranges.

Do I need a financial adviser as well as a broker for an SMSF loan?

Yes. A broker arranges the lending, but the SMSF strategy and the tax questions are for a licensed financial adviser and your accountant. Everstone Finance is a finance and mortgage broker, not a financial adviser, so we handle the loan and work alongside your advisers rather than replacing them. This is general information only, not financial, tax or credit advice.

Sources

For the whole picture of SMSF borrowing after the ban, see our SMSF loans in Australia guide.

Related guides

Important information