Commercial Property SMSF Loans to 80% LVR

A Commercial Property SMSF Loan is a type of loan that is specifically designed to provide funds to authorised Australian Self-Managed Super Funds for the purpose of purchasing or refinancing commercial investment properties. This type of loan allows SMSF trustees to use their superannuation savings to invest in commercial property. These assets can provide long-term benefits such as potential capital growth and regular rental income.

Commercial SMSF property loans are subject to certain restrictions and regulations imposed by the Australian Taxation Office (ATO). For example, SMSF loans are generally only available to SMSFs that have an ABN and are structured as a corporate trustee or have individual trustees.

It is important to seek professional advice before deciding to take out an SMSF loan.  Furthermore there are potential risks and complexities involved. It is crucial to ensure that the investment aligns with the SMSF’s investment strategy and objectives.

A Self Managed Super Fund (SMSF) Loan is available to PAYG and Self-Employed Applicants.

• Suitable for Purchase, Refinance of Commercial Property in cat 1 to 3 locations
• Credit History – Must Be Clear
• Loan Term 25 years (no reviews)
• The SMSF must have a minimum Net tangible asset position of $100,000 at application.
• On completion of the transaction the SMSF must be able to demonstrate it will still hold a minimum of 5% of the total debts held in the superfund in liquid assets. (i.e. cash / interest / dividend earning assets).

Maximum Loan Amounts and LVR’s for Commercial SMSF Property Loans

$4,000,000 – 75% LVR (Cat 1)^

$3,000,000 – 80% LVR (Cat 1)^

$3,000,000 – 75% LVR (Cat 2)*

$2,000,000 – 70% LVR (Cat 3)*

Acceptable Securities

• Shop Fronts
• Offices (strata office OK)
• Industrial Units
• Factories
• Warehouses and Workshops
• Mixed Residential & Commercial use

Income documentation for a Commercial SMSF Property Loan

• (PAYG) Last 3 pay slips showing Superannuation contributions.
• (SELF EMPLOYED) 2 years tax returns for Companies and last 2 personal returns for sole traders and tax assessment notices minimum 2 years ABN registration.

Commercial SMSF Property Loan Documentation

• Prior to settlement, borrower/s and guarantor/s will be required to obtain independent legal & financial advice. Evidence to be provided from solicitors/financial advisors that independent legal & financial advice has been provided

• Last two (2) years bank account statements, or current industry or retail fund statements to be rolled over, evidencing member contributions and cash / investments.

• Two (2) years tax returns and full financial accounts for the SMSF if available (incl. Certificates of registration for the Trust and Bare trust deed)

Full financial position of all guarantor’s must be verified, including obtaining a full statement of assets & liabilities, and evidence of income of the SMSF as follows:

› Copy of current or proposed lease for property.

› Proof of SMSF’s investments that are interest/dividend earning. Ownership by the SMSF must be verified via referencing actual share certificates, holding statements or financial statements confirming funds to complete.

› Proof of expenses for SMSF – if new, letter estimating costs from an accountant or financial planner.

› Certified copies of the SMSF & Property trust deeds

› Statutory declaration from all SMSF beneficiaries that the SMSF is a compliant SMSF under the SIS Act requirements, prior to loan settlement.

Standard Features & Versatility