Commercial property loans for your next address
Buying premises or a tenanted investment, or refinancing? Your broker compares banks and specialist lenders.
- Free to compare
- A specialist partner broker, start to finish
- No credit score impact
Typical ranges only. Actual limits depend on the lender and your circumstances.
Example rate only: not a comparison rate, quote or offer of credit. Your rate depends on your credit profile, the lender and the asset. Excludes fees and charges.
How commercial property loans work with us
Commercial lending differs from home loans. Lenders usually lend a smaller share, scrutinise the lease or your trading, and weigh property type and location.
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Your broker finds lenders suited to your property and purpose, whether business premises or a commercial investment.
- Offices and consulting rooms
- Shops and retail
- Warehouses and factories
- Mixed-use buildings
- Buying through an SMSF or trust
- Refinancing commercial property
Owner-occupied or investment
Buy your own premises or a tenanted investment.
Flexible structures
Principal and interest, interest-only periods and lines of credit.
Low-doc options
Specialist lenders for self-employed borrowers with limited paperwork.
Refinance and release equity
Sharpen your rate or fund growth from existing equity.
LVR, lease covenants and how commercial property lenders assess a deal
Commercial lenders usually lend a lower share of value, with maximum LVR depending on property type, location and lender. For investments they assess the lease closely, and covenants can trigger a loan review if breached.
Read the full explanation
Commercial lenders usually lend a lower share of the property's value than home lenders, so the loan-to-value ratio (LVR) matters. The maximum LVR depends on the property type, location and lender: a standard office or warehouse in a metro area may be treated more favourably than a specialised or regional asset. Specialist lenders may go higher than banks in some cases, often at a higher cost. Your broker can tell you roughly what deposit each lender is likely to need.
For investment properties, lenders look closely at the lease. They consider the tenant's strength, the remaining lease term, rent reviews and whether the rent comfortably covers loan repayments. Many commercial loans include covenants, such as minimum interest cover ratios or maximum LVRs that are checked periodically. If a covenant is breached, perhaps because a tenant leaves or values fall, the lender may review the loan. Understanding these conditions before you sign is important.
- Business owners buying premises
- Investors buying tenanted commercial property
- Owners refinancing or releasing equity
- SMSF trustees exploring commercial property
Pros and watch-outs
Pros
- Own your premises instead of paying rent
- Investments backed by commercial leases
- Equity release for business or investment
- Options from banks and specialist lenders
Watch-outs
- !Usually larger deposits than for homes
- !Covenants can trigger reviews if circumstances change
- !Specialised properties can narrow lender choice
Costs and fees to compare
The interest rate is only part of the cost. Ask your broker to show these side by side.
Interest
Based on LVR, property type, lease and your finances.
Valuation
Usually more detailed and costly than residential valuations.
Legal fees
Your solicitor’s and the lender’s legal costs may apply.
Establishment and line fees
May include setup fees and ongoing fees on the limit.
Stamp duty and GST
Can be significant; check with your accountant and solicitor.
Tips to strengthen your application
- 1Get lease and tenant details early for lenders
- 2Ask which covenants apply and how often they’re tested
- 3Check zoning and permitted use before committing
- 4Discuss ownership structure with your accountant before signing
What you’ll need
What you’ll need
- ABN and business registration
- Driver’s licence for each director or owner
- Recent business bank statements
- BAS or financials (full-doc loans)
- Contract of sale or property details
- Current lease and rent roll (if tenanted)
What lenders look for
- An active ABN (some lenders want 12 months+, others accept newer)
- GST registration for larger or low-doc deals
- Directors or owners with clear credit, or a good explanation
First chat to funds in four steps
How it works in detail →- 1Tell us what you’re after
- 2Meet your broker
- 3Compare and choose
- 4We handle the rest
Commercial property loans: common questions
How much deposit do I need?
Commercial lenders commonly lend up to around 60–70% of the property value, sometimes more with strong financials, so expect a larger deposit than for a home.
Can my business buy its own premises?
Yes. Lenders will look at the business’s financials and ability to service the loan.
How long are commercial loan terms?
Terms vary widely, often 15 to 30 years, and some lenders review the loan every few years.
Can I buy through my SMSF?
Some lenders offer SMSF lending for commercial property. Get advice from your accountant or financial adviser first.
What is an interest cover ratio on a commercial loan?
It compares the property's net income, or the business's earnings, to the interest payable. Lenders use it to check the loan is comfortably serviceable. Each lender sets its own minimum.
Can I get a commercial property loan with a vacant property?
Some lenders will consider vacant commercial property, especially if you plan to occupy it or have strong other income. The LVR may be lower and the cost higher. It depends on the lender and property.
Are commercial property loans interest-only?
Some are, particularly for investment properties, though many lenders require principal and interest. Terms vary by lender and loan purpose. Your accountant can advise on any tax effect.
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