Buy your premises inside super
SMSF lending for commercial premises, arranged through Lyft Financial.
Limited recourse borrowing has strict rules and a narrow lender panel. We explain the structure, the costs and the constraints before anything is submitted.
What is a smsf commercial property loan?
An SMSF commercial property loan is a limited recourse borrowing arrangement that lets a self-managed super fund buy commercial property, with the lender’s recourse limited to that property alone. Business owners commonly use it to buy their own premises inside super and lease it back to the business at market rent.
Under a limited recourse borrowing arrangement the property is held in a separate bare trust, and if the loan defaults the lender can take that property but cannot pursue the fund’s other assets. That protection is the reason SMSF lending exists in this form, and it is also why rates sit above ordinary commercial lending, deposits are larger and only a handful of lenders participate.
The business-premises version is the most common use. Superannuation law generally prohibits a fund from acquiring assets from related parties, but business real property is a specific exception, so a fund can buy premises the members’ own business occupies. The business then pays market rent to the fund, on a written lease, at arm’s length. Both the market rent and the arm’s-length documentation are audited annually and are not optional.
Expect a 30–35% deposit, rates roughly one to two points above equivalent non-SMSF commercial lending, and lender requirements for an independent financial advice certificate and legal sign-off on the bare trust deed. Setup involves your accountant, your solicitor and the lender together. This is the most compliance-heavy lending we arrange, and the structure needs to be right before settlement, not corrected afterwards.
SMSF commercial property loan at a glance
| Amount | $200,000 – $5,000,000 |
|---|---|
| Term | 60–360 months |
| Rate type | Fixed or variable |
| Indicative rates (Q3 2026) | 7.2% – 9.9% p.a. · see rate history |
| Security | Secured by property |
| Repayments | Monthly |
| Typical speed | 4–10 weeks including trust deed review |
| Best for | Established SMSFs with sufficient balance buying business premises or commercial investment property |
| Consider something else if | Funds with low balances, poor liquidity, or members wanting flexibility to sell quickly |
| Tax | Rent received by the fund is taxed at concessional super rates and interest is deductible to the fund. Get licensed financial and tax advice before proceeding. |
Advantages
- Rent is paid into your super fund rather than a landlord
- Recourse is limited to the property purchased
- Concessional tax treatment on rental income within the fund
Trade-offs
- Larger deposits and rates above standard commercial lending
- Significant setup, legal and ongoing compliance costs
- Very few lenders participate, limiting competition
How to apply for a smsf commercial property loan
- 01
Check the fund and the structure
Fund balance, liquidity, trust deed borrowing powers and whether the property qualifies as business real property.
- 02
Establish the bare trust
Your accountant and solicitor set up the holding trust and corporate trustee before contracts are exchanged.
- 03
Approval and settlement
The lender reviews deeds, orders a valuation and settles alongside your solicitor with the lease documented from day one.
Documents lenders commonly ask for
- SMSF trust deed, bare trust deed and corporate trustee details
- Two years of fund financials, member statements and the investment strategy
- Contract of sale and the proposed or existing lease
Lenders we compare for this
Macquarie, Pepper Money, Westpac, NAB and others on our panel. See the full panel.
Estimate your repayments
- Number of repayments
- 48
- Total interest (est.)
- $13,225
- Total repaid (est.)
- $88,225
This calculator provides an estimate only and does not account for fees, charges or the specific terms a lender may offer. It is not financial advice or an offer of finance.
Key terms
What is an SMSF commercial property loan?
An SMSF commercial property loan is borrowing by a self-managed super fund to acquire commercial property under a limited recourse borrowing arrangement. The property is held in a separate bare trust and the lender’s recourse is limited to that asset.
What is a limited recourse borrowing arrangement?
A limited recourse borrowing arrangement is the structure superannuation law requires for SMSF borrowing. The asset is held on trust for the fund and, on default, the lender can recover only against that asset and not the fund’s other investments.
Can an SMSF buy the premises my business operates from?
Yes. Business real property is an exception to the rules restricting acquisitions from related parties, so a fund can buy premises used wholly and exclusively in a business. The business must lease it back at market rent under a written arm’s-length lease.
What deposit does an SMSF property loan need?
Lenders generally cap SMSF commercial lending at 65–70% of the property value, so a deposit of 30–35% plus costs is required. The fund must also retain a liquidity buffer after settlement.
SMSF commercial property loan FAQs
Can my SMSF buy the premises my business trades from?
It is possible where the property is genuine business real property and the arrangement complies with superannuation law, typically through a limited recourse borrowing arrangement. The fund borrows, a bare trust holds the asset, and the business pays market rent to the fund under a lease. Lenders apply conservative LVRs and want the fund to hold a liquidity buffer. This is an area where you need advice from your accountant and a qualified SMSF adviser before you commit.