Why I am all in on Commercial SMSF lending..

If you've ever looked into purchasing an investment property through your Self-Managed Superfund (SMSF) you've probably tossed up between whether you'll invest in a commercial or residential property. This debate has been going on since I started in the space back in 2010. For years, I struggled to pick a clear winner. But now? I can say with 100% confidence that the industry is designed to favour SMSF lending for commercial properties.

The Early Days of SMSF Lending

Back in 2010, commercial property had a huge drawback- cost. Man, that stuff was expensive. To make it worthwhile, you either needed to be already wealthy or taking on enough debt to justify the steep application fees from a commercial viability standpoint. Meanwhile, SMSF loans for residential properties were flying off the shelves. And it’s no surprise why, They were:

? Cheaper to set up

? Faster to process

? Required a lower deposit

? Had lower interest rates

But, of course, where there’s opportunity, there are also opportunists. A flood of property spruikers jumped in, pushing overpriced off-the-plan apartments onto eager investors. By the mid-2010s, the market was flooded with overvalued stock, and things started to unravel.

The SMSF Lending Shake-up

Around 2016-2017, the big players in the SMSF lending space pulled out, leaving the industry in limbo. Luckily, smaller lenders like La Trobe and Liberty stepped up to keep things moving. Fast forward to 2025, and the landscape has completely changed- more lenders have entered the space, bringing competition and better products than ever before.

This is where things really shifted. More competition meant…

? Lower commercial property pricing

? Interest rates more in line with residential loans

? Significantly reduced application fees

Lenders were forced to step up their game to win business, and the result? SMSF commercial property loans now match residential pricing.

Why Commercial SMSF Lending is now the winner.

The playing field has levelled, and the benefits of commercial SMSF lending are clear:

? No more eye-watering application fees

? No ridiculous rate loadings, just because it's commercial

? Higher LVRs- We can not get 80% LVR Lending on commercial property, just as easily as residential

These changes make SMSF lending for commercial properties way more appealing. The benefits speak for themselves!

? Easier property management ?

? Lower overheads ?

? Higher rental yields on average ?

? Longer leases ?

? No messy residential tenancy laws, that only seem to protect unrealisable tenants ?

A Game Changer for Small Business Owners

The biggest win? SMSF commercial lending has opened doors for SMEs to buy their own business premises. We’ve helped more small business owners secure their own shopfronts, factories, and offices than ever before—and that’s what it’s all about. They’re investing in their business, their future, and their stability all at once. That’s a bloody good feeling.

This space will continue to evolve, and we’re watching closely. If the old lenders don’t match the pricing of the new ones? Well, see ya mate—you won’t survive here.

We’ll be at the SMSF Association Conference from Wednesday 19th to Friday 21st February—chatting about more hacks, tips, and tricks when it comes to SMSF lending.

Sean Murphy - SMSF Specialist and Director

My Mortgage Freedom