What happened
Non-bank lender ORDE Financial expanded its commercial and self-managed super fund lending policy, raising loan-to-value ratios up to 80 per cent across 10 growth markets and regional centres. The move follows the federal government's ban on new residential SMSF borrowing via limited recourse borrowing arrangements, which took full effect in August after receiving Royal Assent in June 2026.
Why it matters here
SMSF trustees seeking geared property exposure must pivot away from residential assets toward commercial opportunities. Higher available LVRs from non-bank lenders give superannuation investors greater flexibility to acquire commercial premises in regional growth corridors, though increased borrowing limits require careful evaluation of yield, tenant quality, and ongoing debt servicing costs in a higher interest rate environment.
What to watch
Commercial lending activity from non-bank providers and portfolio allocation adjustments by SMSF trustees in regional growth centres following the full implementation of residential borrowing restrictions.
Source
mpamag.com