A super fund borrows under rules a personal buyer never meets: a bare trust, a single acquirable asset, liquidity that has to survive the purchase. Most of what goes wrong happens before the finance application, in the order things are signed.
We arrange SMSF lending for commercial property purchases and for refinancing residential property the fund already holds. We work alongside your accountant and financial planner, and we take no referral fees from anyone.
Who this is for
- SMSFs buying commercial property, including business premises
- SMSFs refinancing an existing residential property loan
- Funds with a balance generally above $450,000
Who it is not for
- Residential property purchases inside the fund
- Advice on setting up a fund, or on whether to buy property in super. That is financial advice, and Stratega does not give it
What lenders look at
SMSF lenders assess the fund, not the member. The property matters, but the fund's ability to hold it through a vacancy or a rate rise matters more.
- Liquidity after settlement. What is left in the fund once the deposit and costs are paid
- Fund balance and contributions. The size of the fund and what flows into it each year
- Bare trust set-up. The holding trust has to exist, and be right, before the contract is signed
- Single acquirable asset rules. One title, one loan, no improvements funded by the borrowing
- Clear ATO tax portals for the fund, every member and every related entity
Loan size and timing
Commercial purchases inside a fund typically run at 60% to 70% LVR. The deposit and the costs come from the fund, so the balance after settlement is the figure that decides whether a lender is comfortable.
Residential property the fund already owns can be refinanced after 12 months of ownership, and that refinance can move quickly once the fund's paperwork is in order. Purchases take longer: fund set-up, the bare trust deed and the accountant's sign-off are the usual reasons, and all three sit outside the lender.
Before anything else: Clear ATO tax portals across every individual and entity involved. Lenders check this early, so we check it first.
The mistake we see most
Signing the contract in personal names before the bare trust exists. The fund cannot simply take over a contract that was signed by a member, and unwinding it costs time, money and sometimes the property. The trust and the trustee company have to be in place, with the right names on them, before anyone signs anything.
A real example
A fund was carrying a loan on property it had held for years, at a rate that had never been reviewed. We refinanced it. The result: an SMSF refinance from 10% to 6.99%. Around 3 percentage points saved. That is a deal result on one fund's position, not an offer, and every fund is assessed on its own numbers.
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How we work
SMSF lending runs through our commercial credit team, with your accountant and adviser in the loop from the first call. We regularly work alongside Morgan Wilson and Troy Ratcliffe of Willow Wealth Partners on the fund and advice side, and we take no referral fees from either.
- 15-minute fit callWith our team. We learn what the fund holds, what it wants to buy or refinance and whether the balance and liquidity make it workable. If it is, we book you a Discovery Call with Dion.
- Discovery Call with DionA free 30-minute conversation about where you are, where you want to get to and what has to be true first. If we can help, we say how. If we cannot, we say that too.
- Finance StrategyThe written plan: the lender, the LVR, the liquidity position after settlement and the order of signing, agreed with your accountant so the bare trust and the contract line up.
- ImplementationWe lodge, work with the fund's accountant on the lender's questions and run it through to settlement.
Access to a wide panel of major banks, non-banks and specialist lenders through Connective, plus off-panel lenders where the deal needs it.
What it costs
The fit call and the Discovery Call cost nothing. The Finance Strategy is a one-off fee for the work of designing the structure: the entity, the lender sequence, the splits and the order of moves. We quote it on the Discovery Call, once we know the scope. If the strategy does not leave you knowing exactly where you stand and exactly what to do next, the fee is refunded in full. Stratega takes no referral fees from accountants, planners or anyone else involved in the fund.
Common questions
Can my SMSF buy residential property?
We do not arrange residential purchases inside a fund. We arrange commercial purchases, and refinances of residential property the fund already owns.
Can I refinance my SMSF loan?
Yes, once the fund has owned the property for 12 months. It is often the quickest SMSF lending there is, because the fund and the property already exist and the lender is assessing a known position.
How much do I need in my fund?
As a general guide, a balance above $450,000 is where SMSF property lending starts to work. Below that, the liquidity left after the deposit and costs is usually too thin for a lender. Your adviser can tell you whether buying in super suits you at all; we can tell you whether a lender will fund it.
Can my SMSF buy my business premises?
Commercial property, including the premises your own business leases, is the purchase SMSF lenders are most comfortable with. The lease has to be on arm's length terms and your accountant has to confirm the fund rules are met. Once that is settled, the lending follows the same path as any commercial SMSF purchase.