iscover 
The non-bank lender now offers commercial self-managed super fund (SMSF) principal and interest rates from 7.04 per cent at 50 per cent loan-to-value ratio (LVR), rising to 7.69 per cent at 80 per cent LVR.
Interest-only rates start at 7.24 per cent for 60 per cent LVR, increasing to 7.6 per cent at 75 per cent LVR.
Better Choice has also removed its post-settlement 5 per cent liquidity requirement for commercial SMSF loans – a move the lender said will simplify deal structures and improve execution certainty for brokers and clients.
In addition, the lender has lifted maximum loan sizes across its commercial product suite from $3 million to $5 million and expanded acceptable commercial security types to include mixed-use properties, medical suites and doctors’ surgeries, licensed boarding houses, and multiple units on one title.
BNK Group CEO Allan Savins said: “We’ve spent time listening to brokers about where deals were getting harder to place, starting with sharper SMSF pricing and broader commercial flexibility.
“This is the first step in a series of targeted improvements designed to help brokers compete and grow. These enhancements sit within a broader, ongoing roadmap supported by new appointments across sales, credit and product”.
A shifting market
The announcement comes amid changing conditions in the SMSF lending market, with some lenders expanding their presence, while others tighten policy settings.
Most recently, non-major bank AMP began piloting a residential SMSF lending solution, marking its return to the space after exiting the market in 2018.
The SuperEdge product is being tested with a select group of brokers and AMP home loan specialists, with broader market availability targeted for the end of 1Q26.
“As a challenger bank, we’re trying to be more innovative and do things differently and bring product innovation. So there was a gap in the market that we needed to step into and we think it’s right that it’s not only non-banks that offer this type of a solution for customers as well,” AMP Bank group executive Sean O’Malley said.
AMP expects SMSF lending to account for around 10 per cent of its new home loan business going forward.
None of the major banks currently offer SMSF lending for commercial or residential property. Commonwealth Bank and Westpac exited the market in 2018, National Australia Bank (NAB) in 2015, and Macquarie Bank in 2019. Australia and New Zealand Banking Group (ANZ) did not make significant moves into the space to begin with.
The 2014 Financial System Inquiry and the banking royal commission highlighted risks associated with using retirement savings as an investment vehicle.
Some lenders have also tightened policies around company and trust lending.
However, following the exit of traditional lenders, non-bank players – including Pepper Money, Firstmac, and Liberty – have moved into SMSF lending.
Savins said Better Choice’s latest changes form part of a broader series of targeted enhancements aimed at expanding its SMSF offering and supporting broker growth.
“These enhancements sit within a broader, ongoing roadmap supported by new appointments across sales, credit and product,” he added.
[Related: 18 years of SMSF lending: Unpacking its rapid rise]