It is the first question almost every business owner asks me about buying commercial property through their super: how much do I actually need in the fund to make this work?
It is a fair question, and the honest answer is that the deposit is only part of it. The figure that matters is not just what the lender will lend, but what your fund needs to hold in total once the deposit, the costs and a sensible cash buffer are all accounted for. This article walks through the real numbers as they stand in mid-2026, with a worked example, so you can gauge whether your fund is in the right range before you go any further.
This article is general information only and does not take your personal circumstances into account. SMSF borrowing is a tightly regulated area, and you should get licensed financial, tax and legal advice before acting.
The short answer
As a general guide in 2026, most lenders want to see a fund balance of around $250,000 to $300,000 before they will consider a commercial SMSF loan, and many prefer more. For a purchase of any real size, a balance closer to $400,000 to $500,000 is where the numbers start to sit comfortably once you allow for the deposit and the buffer lenders expect you to retain.
There is no legal minimum balance to borrow inside an SMSF. These thresholds are set by lenders, not the law, and they exist because a lender wants confidence the fund can keep servicing the loan even if the property sits vacant for a few months. So the real question is not the minimum to get a foot in the door, but the amount that makes the purchase you actually want both achievable and safe.
The four numbers that make up the total
The cash your fund needs is the sum of four things. The deposit is the one everyone thinks of, but the other three are what catch people out.
1. The deposit
Commercial SMSF lending is more conservative than residential. Where residential SMSF loans have typically allowed 70 to 80 per cent of the property value, commercial loans usually sit at 60 to 70 per cent. That means a deposit of 30 to 40 per cent of the purchase price, though stronger applications and in-demand property types such as medical suites or prime-location premises can sometimes push the loan-to-value ratio higher.
One important detail: the lender lends against its own valuation, not your purchase price. If the valuation comes in below what you agreed to pay, your deposit has to make up the difference, so it is worth getting a valuation indication before you bid.
2. Stamp duty and acquisition costs
Stamp duty on a commercial purchase in New South Wales is substantial, and it is payable in cash from the fund. On top of that you have legal fees, the bare trust establishment, an independent valuation, and loan application fees, which for commercial SMSF loans can run to around 1 per cent or more of the loan amount. As a rough planning figure, allow somewhere in the region of $50,000 to $100,000 for these combined costs on a mid-sized purchase, depending on the price.
3. The liquidity buffer
This is the number most people miss. Lenders do not want your fund emptied to the last dollar on settlement day. They typically want a cash reserve left in the fund afterwards, often in the order of 10 per cent of the loan amount, and many effectively want enough to cover roughly twelve months of loan repayments and fund expenses. The buffer is there so the fund can meet its obligations if the tenant leaves or an unexpected cost arrives.
4. Ongoing servicing
Beyond the cash needed at purchase, the fund has to be able to service the loan on an ongoing basis. Lenders assess this using the rental income, usually counted conservatively at around 80 per cent of the expected rent to allow for vacancies, plus the ongoing super contributions flowing into the fund. A property with a strong, reliable rental yield materially improves your borrowing capacity.
A worked example
Numbers make this concrete. Take a business owner looking at a commercial premises priced at $700,000, with a lender offering 70 per cent.
| Item | Amount |
| Purchase price | $700,000 |
| Loan at 70% LVR | $490,000 |
| Deposit required (30%) | $210,000 |
| Stamp duty, legals, bare trust, valuation | ~$50,000 to $70,000 |
| Liquidity buffer (~10% of loan) | ~$49,000 |
| Approximate total fund balance needed | ~$310,000 to $330,000 |
So while the deposit on a $700,000 property is $210,000, the fund realistically needs somewhere around $310,000 to $330,000 in total to complete the purchase and stay comfortable afterwards. Scale that up to a $1 million or $1.35 million property and the same logic applies, which is why lenders lean toward wanting $400,000 to $500,000-plus in the fund for larger purchases.
These figures are illustrative. Your actual numbers will depend on the lender, the property type, the New South Wales duty payable and your fund’s structure, and should be modelled properly before you commit.
What lenders look at beyond the balance
The fund balance gets you considered. These factors decide the outcome:
- Rental yield and lease strength. A well-leased property with a solid tenant, even where that tenant is your own business on a market-rent lease, supports servicing.
- Contribution capacity. Regular, stable contributions from the members reassure a lender that the fund’s cash flow can cover repayments alongside the rent.
- Property type. Lenders favour standard, liquid commercial assets. Offices, warehouses, logistics premises, medical suites and essential retail are viewed more favourably than specialised or hard-to-relet buildings.
- Fund compliance standing. A clean, well-administered fund with an up-to-date trust deed and investment strategy that permits borrowing is assessed far more smoothly than one with gaps.
Why the lender you choose matters
There are only around twenty lenders offering SMSF products in Australia, against hundreds for standard lending, so the market is far less competitive and policies vary widely. One lender might cap a commercial deal at 65 per cent while another goes to 75 per cent for the same property. Application fees, rates and buffer requirements differ meaningfully between them. Commercial SMSF loan rates in 2026 span a wide band, roughly the mid six per cent range at the sharp end up to nine per cent or more, depending on the lender, the property and the strength of the fund.
With a smaller field and wide variation, getting the lender match right is the difference between a deal that works and one that stalls. This is where a broker who knows the SMSF panel earns their fee, by pointing your fund at the lender most likely to say yes on the terms you need.
Frequently asked questions
Is there a legal minimum super balance to buy commercial property? No. The law sets no minimum. Lenders apply their own thresholds, commonly $250,000 to $300,000, with some wanting more, because they want confidence the fund can service the loan through a vacancy.
What deposit do I need for a commercial SMSF loan? Usually 30 to 40 per cent of the purchase price, reflecting maximum LVRs of 60 to 70 per cent. Some strong applications and sought-after property types access higher LVRs, but that is the exception.
Can two or more members combine their super? Yes. An SMSF can have up to six members, and combining balances is one of the most common ways couples or business partners reach a workable fund size for a commercial purchase.
Did the August 2026 changes affect this? No. The ban on new SMSF borrowing applies to residential investment property only. Commercial and business real property loans are unaffected.
How much of the rent do lenders count? Typically around 80 per cent of the expected rent, discounting the rest to allow for vacancies and costs when they assess whether the fund can service the loan.
Where to from here
If your fund is sitting somewhere around $300,000 or above, a commercial purchase is worth a serious conversation. If it is closer to $400,000 or $500,000, you have real room to look at quality premises with a comfortable buffer. And if you are not quite there yet, a clear plan on contributions and timing can get you there sooner than you might expect.
At UniFi Capital, SMSF lending is the work I know best. Give me the rough shape of your fund and the kind of property you have in mind, and I can tell you fairly quickly whether the numbers stack up, what the current lender panel will accept, and what a realistic path looks like.
To find out whether your fund is ready for a commercial purchase, get in touch with UniFi Capital.
