SMSF loans: commercial property and refinancing

Last updated 3 November 2026 · Reviewed by 360 MMS Compliance

What changed on 10 August 2026?

From 10 August 2026, new purchases with our SMSF loans are business real property only. That's generally property used wholly and exclusively in a business, such as offices, shops, warehouses and industrial premises. A residential purchase can still go ahead only where the contract was signed and the deposit exchanged before 10 August 2026. Exchange is the trigger, not the settlement date or the date you apply. If your fund exchanged on a residential property before then, talk to us before your broker lodges the application.

Can my SMSF still refinance a residential property loan?

Yes. We can help refinance an existing residential SMSF loan from another lender. Depending on the loan, the property may need to have been bought, with contracts exchanged, before 10 August 2026.

For some funds, a streamlined refinance may be available, which can make the application simpler. Cash out isn't available when refinancing an SMSF loan this way. Your broker will assess your income and financial situation.

How much can an SMSF borrow?

How much an SMSF can borrow depends on the fund, the property and our lending criteria. Your broker will assess the fund's income and financial situation, and can check whether the property you're considering is likely to be acceptable before the fund commits. Each application is assessed on its circumstances and lending criteria.

How does the fund need to be set up?

The fund needs a corporate trustee, and the property is held in a separate bare trust until the loan is repaid. For a commercial purchase, the usual order is:

1. the fund has a corporate trustee and a trust deed that allows it to borrow
2. a bare trustee company is set up before the contract is signed
3. the bare trustee signs the contract as trustee of the bare trust
4. the deposit is paid from the SMSF's bank account
5. the loan application is lodged.

Your accountant or solicitor sets up the trustee companies and deeds. Getting the order right before you sign a contract matters.

Who has to guarantee the loan?

Each member of the fund gives a personal guarantee (on some loans, each adult member). A guarantee means a member can be personally liable if the fund can't repay. Every member should understand what they're signing, and it's a good idea to get independent legal advice first.

Can the fund buy premises from a member or related party?

Super law allows an SMSF to buy business real property from a related party, such as a member's own business premises, and lease it to the members' business at market rent on commercial terms. For our SMSF loans, the purchase must be at full market value with a licensed real estate agent acting for the vendor. Private sales without an agent, and sales below market value or on favourable terms, are declined.

Where a member already owns the premises, the fund can buy them at market value, borrow part of the price, and the member can contribute the rest of their equity in specie at settlement as the deposit. That contribution counts towards the member's contribution caps, and stamp duty, capital gains tax and GST can apply. Your accountant confirms the contribution is within the caps and documents it. An independent valuation is needed.

Who can advise on whether my SMSF should borrow?

Only a licensed financial adviser, or an SMSF specialist accountant who is licensed to give SMSF advice, can advise whether your fund should borrow or buy a property. Mortgage brokers and 360 MMS don't give SMSF advice. Your broker can explain our loans and their lending criteria, but the decision to borrow inside super needs independent advice about your fund, your retirement goals and the risks.

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General information only. It doesn't take into account your objectives, financial situation or needs, and it isn't credit, tax or legal advice. All loans are subject to lending criteria, and fees and charges apply. Kuone Pty Ltd T/As 360 MMS (ABN 81 621 683 672), Australian Credit Licence 504193.