SMSF Commercial Property Loans Overview

What do smsf commercial lenders look for?   With SMSF Commercial property loans, as well as sound commercial security, lenders need to know the fund can afford to pay the loan. For this reason they focus on the funds income.

Contributions  They look at how much and how regular contributions have been made into the fund.

Rent  They also look at the lease  to see the rent being received. If the property is to be owner occupied (which is common) then the rent is assessed at market rent.

Loan size   Minimum loan size is $500,000.  Most smsf commercial finance is done up to $1m.  No maximum loan size.

Term   From 1 year to 30 years. For smsf commercial property loans the lenders are looking at the income streams. Normally owner occupied commercial loans are done for a longer term.

  • LVR 
  • 80% up to $1m (residential security)
  • 75% up to $3m
  • 70% up to $5m
  • 65% unlimited, and assessed on its merits
  • 55% for cheaper rates

Indicative SMSF Rates  As a guide, for standard smsf commercial properties, variable rates normally sit between 4.79% to 6.8%. Larger commercial loans can be done cheaper than this.

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