Non-bank lender lifts LVRs across 10 growth markets as brokers navigate major Budget upheaval
Non-bank lender ORDE Financial has widened its commercial and self-managed super fund (SMSF) commercial lending policy.
It will now lend at up to 80% of the security's value on eligible commercial and SMSF commercial properties across a broader range of Australian locations. The change comes seven weeks after the federal government's ban on new residential SMSF borrowing took effect.
ORDE’s policy change applies to eligible full doc, lease doc and alt doc transactions, covering selected locations in Canberra, Adelaide, Perth, Hobart, the Gold Coast, Sunshine Coast, Newcastle, the Central Coast, Wollongong and Geelong.
ORDE framed the move as a response to growing demand from brokers whose clients are buying commercial property, investing through SMSFs and expanding businesses outside the major east coast capitals.
Lee Prior (pictured), director of distribution at ORDE, linked the change to the lender's Outlook Australia research with Bernard Salt, which identified Australia's growth corridors and regional commercial centres as increasingly important.
Read more: ORDE Financial’s data-driven era begins
Prior said more brokers are helping clients invest and grow businesses outside the traditional capitals, and that "our lending policy needs to evolve alongside that demand". He added that access to an 80% LVR can make a meaningful difference for investors and businesses pursuing opportunities in those markets.
How resi ban reshaped the market
Treasurer Jim Chalmers confirmed on 23 June 2026 that SMSFs would be barred from using limited recourse borrowing arrangements (LRBAs) to buy residential property.
The ban was part of a deal with the Greens to pass the government's budget tax legislation through the Senate.
The bill received Royal Assent on 26 June. Existing arrangements were grandfathered, and a 45-day transition window protecting contracts already under way ended on 10 August.
But the restriction does not apply to commercial property, leaving commercial SMSF lending as the obvious remaining borrowing route for trustees.
Opponents of the ban argued it targeted a conservatively geared segment. Data cited in a joint statement from non-bank lenders showed SMSFs held about $75 billion in LRBA-supported assets against $28.9 billion in debt, an average gearing level of 39%.
RedZed chief executive Calvin Cordle recently told MPA he expected demand for commercial SMSF lending to continue, describing it as "an important avenue for those seeking to build long-term wealth within a regulated framework".
ORDE is not the only lender moving. Pepper Money added commercial and eligible SMSF lending to the AFG Options and Mortgage Choice Ignite white-label platforms from 9 July.
Mathew Rehayem, Pepper Money's head of white label and strategic partnerships, said the timing reflected where broker opportunities now lie.
"While the proposed changes are reshaping residential SMSF lending, brokers will continue to support customers with existing residential SMSF lending and commercial SMSF opportunities. Our role is to provide our aggregator partners and their brokers with the practical lending solutions and confidence they need as the market evolves,” said Rehayem.
