SMSF LENDING

Specialist SMSF Property Lending

SMSF lending is a specialist area of finance where lender policy, superannuation legislation and the structure of the borrowing arrangement all need to work together.

BWM Finance's SMSF lending service is focused on:

  • New eligible commercial property lending through an SMSF

  • Refinancing existing eligible SMSF residential property loans

  • Refinancing existing eligible SMSF commercial property loans

BWM Finance does not assist with new SMSF borrowing for the purchase of residential property.

All SMSF lending remains subject to current legislation, lender policy, eligibility and credit assessment.

Working With Your Professional Advisers

SMSF borrowing sits at the intersection of lending, superannuation, taxation and law.

BWM Finance provides credit assistance within our authorised scope.

We do not provide advice about whether you should establish an SMSF, whether a particular property is an appropriate investment, or the taxation, superannuation or legal consequences of an SMSF transaction.

We believe these transactions work best when the right professionals work together.

Where required, we can work alongside your:

  • Accountant

  • SMSF specialist

  • Solicitor

  • Appropriately licensed financial adviser

Our role is to understand the proposed borrowing arrangement, identify appropriate lending options, prepare the application and manage the finance process through to settlement or refinance.

  • If your SMSF already has an existing property loan, there may be opportunities to review the facility and consider whether refinancing is available.

    This can include existing SMSF lending secured by residential or commercial property.

    The SMSF lending market is more specialised than standard property lending, and not every lender participates.

    Those that do can have significantly different approaches to pricing, loan-to-value ratios, liquidity requirements, servicing and property acceptance.

    BWM Finance can review your existing SMSF facility, assess relevant refinancing options and determine whether another lender or loan structure may be worth considering.

  • Eligible SMSFs may have borrowing options for qualifying commercial property transactions, subject to current legislation, the fund's structure and lender requirements.

    This can be particularly relevant to business owners considering purchasing commercial premises through their SMSF.

    Depending on the circumstances and applicable rules, commercial properties may include:

    • Offices

    • Warehouses

    • Factories and industrial premises

    • Retail premises

    • Other eligible commercial or business real property

    Commercial SMSF transactions can involve additional considerations around the property, lease, borrower structure, limited recourse borrowing arrangement and fund.

    For that reason, it is important to involve your professional advisers before committing to a transaction.

  • SMSF lending is not offered uniformly across the market.

    Different lenders can take different approaches to:

    • Loan-to-value ratios

    • SMSF liquidity requirements

    • Contributions

    • Rental income

    • Member and guarantor requirements

    • Property types

    • Commercial leases

    • Loan terms and repayment structures

    • Limited recourse borrowing arrangements

    This makes lender selection particularly important.

    Rather than approaching a single lender and being restricted to its SMSF lending policy, BWM Finance can investigate relevant options from the lenders available to us and identify those whose policies appear aligned with the transaction.

Already Have an SMSF Property Loan?

If your SMSF already has an existing residential or commercial property loan, it may be worth reviewing the facility to understand what refinancing options are currently available.

For clients considering an eligible new commercial property acquisition through their SMSF, we can also help investigate the lending position before the transaction progresses too far.

Speak with BWM Finance about your SMSF lending requirements.