There isn't a legal minimum super balance required for an SMSF loan. However, that doesn't mean every fund is ready to buy commercial property. In practice, many lenders and SMSF professionals see around $150,000 to $200,000 as the point where an SMSF becomes more viable, although the right amount depends on the property, the loan size and your fund's overall financial position.
Why $150,000–$200,000?
When buying commercial property through an SMSF, your fund needs enough money to cover the purchase while remaining financially healthy afterwards. That typically includes:
- Deposit, with most lenders requiring around 20 to 30% of the property's value
- Stamp duty and government charges
- Legal fees, including the bare trust and loan documentation
- SMSF establishment costs, if your fund is new
- A cash buffer so the fund can continue meeting its ongoing obligations after settlement
Example
If your SMSF purchases a $500,000 commercial property, you may need:
- Around $100,000 to $150,000 for the deposit
- Stamp duty and legal costs
- Loan establishment costs
- Cash remaining in the fund after settlement
That's why lenders generally prefer SMSFs with larger balances, rather than funds that would be left with very little liquidity after the purchase. To buy quality commercial properties, you are likely looking at higher purchase prices and larger SMSF balances, normally $300,000+.
What do lenders actually look at?
Your super balance is only one part of the assessment. Lenders also want confidence that your SMSF will remain financially healthy after purchasing the property. They'll generally consider:
- The size of your fund, with larger balances providing greater flexibility
- Cash remaining after settlement, ensuring the SMSF can continue operating comfortably
- Rental income and super contributions, to demonstrate the fund can meet loan repayments
- The commercial property itself, including its location, quality and tenant profile
- The fund's overall financial position, including existing assets, liabilities and investment strategy
What if I have less than $150,000?
Having less than $150,000 doesn't automatically rule out buying commercial property through your SMSF. It may simply mean you're not ready today.
Rather than rushing into a purchase, it can be worth focusing on growing your super balance, understanding what property value your fund could realistically support and developing a strategy for the future.
Even if buying isn't possible yet, understanding your borrowing position now helps you make better decisions over the coming years.
Can I combine super with someone else?
Yes. An SMSF can have up to six members, allowing eligible members to pool their super balances.
This can increase the fund's purchasing power and make commercial property more achievable. However, bringing additional members into an SMSF is a significant decision that affects ownership, control and future exit options, so everyone's long-term goals should be aligned before proceeding.
How much you actually need
There isn't a single super balance that suits every SMSF.
The amount you'll need depends on the commercial property you're buying, your fund's cash flow, the lender's requirements and your long-term investment strategy.
A quick review of your SMSF can usually tell you whether you're ready to buy now, how much you could comfortably borrow or what milestones you should aim for before purchasing.
Frequently asked questions
Is $100,000 enough for an SMSF loan?
It depends on the property's value, your fund's financial position and the lender's requirements. While there is no legal minimum, many lenders are more comfortable once an SMSF has built a larger balance and retains sufficient cash after settlement. At around $100,000, the fund's running costs are also likely to outweigh the benefits.
Can I still buy residential property through my SMSF?
Yes, but not with a new loan once the change takes effect. From 10 August 2026, new residential SMSF borrowing arrangements will no longer be permitted. Existing residential SMSF loans can continue and may still be refinanced under the grandfathering provisions, and an SMSF with enough cash can still buy residential property outright.
Does every lender require the same super balance?
No. Every lender has its own credit policy and assesses factors such as the fund's balance, available cash, rental income, loan size and the commercial property being purchased.
Last updated: July 2026
This article is general information only. It doesn't take into account your objectives, financial situation or needs, and it isn't credit, financial or tax advice. Figures are indicative estimates that vary by lender, state and property and can change, so we confirm your real numbers before you act. For tax questions, speak to a registered tax agent or accountant. Scott Lung, credit representative 567904 of Purple Circle Financial Services Pty Ltd (Australian Credit Licence 486112).
5 finance decisions to get right before buying your first investment property
- Build your first investment with a long-term property strategy.
- Understand the finance decisions that shape your borrowing power and future options.
- Make smarter decisions around your deposit, cash flow and loan structure before you sign a contract.
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