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Commercial Property Loans
Commercial Property Finance for Investors & Businesses
Office, retail, industrial, mixed-use or specialised assets — commercial lending is a specialist space with its own LVRs, fees and assessment quirks. We find the right structure across mainstream and non-bank lenders.
Overview
How Commercial Property Lending Works
Commercial property loans cover any property used for business purposes — offices, retail shopfronts, light industrial, warehouses, child-care centres, medical suites, mixed-use buildings with residential upstairs and commercial below. Each asset class has its own LVR and pricing because lenders see different levels of risk.
Maximum LVRs on commercial typically range from 65% to 75% for standard assets, with some lenders going to 80% for owner-occupiers in low-risk asset classes. Specialised securities (service stations, motels, child-care, medical) usually attract lower LVRs and higher rates.
Income assessment can be done full doc (using two years of company financials and ATO portals) or alt doc / lease doc (using the lease income from the property itself, plus accountant’s letter or BAS statements). Lease doc is particularly common where the property is being purchased as an investment and the rent supports the loan.
Commercial loans typically run on shorter terms than residential — 15 to 25 years is common, with 30 years available from some non-bank lenders. Interest-only periods of three to five years are standard.
Key Features & Benefits
What’s Available in Commercial Lending
Full Doc & Alt Doc Options
Borrow against full company financials and tax returns, or use alt doc / lease doc for faster assessment based on the property’s lease income and an accountant’s certification.
Up to 80% LVR on Owner-Occupied
Owner-occupier commercial purchases in standard asset classes can go to 80% LVR with some lenders, freeing up working capital for the business.
Investment LVRs to 75%
Commercial investment properties typically attract LVRs up to 75% on standard offices, retail and industrial. Higher LVRs available on negotiation for strong borrowers.
Lease Doc for Investment
If the property’s lease income alone covers the loan repayments, a lease doc loan lets you borrow without a deep dive into your personal income or company structure.
SMSF Commercial Property
Purchasing a commercial property inside your SMSF (typically the premises your business operates from) is a specialist setup. We work with lenders that support commercial LRBA structures.
Specialist Security Lenders
Service stations, child-care, motels, medical suites, hotels and other specialised assets need lenders with specific appetite. We know which lenders take which securities.
Is This Right for You?
Is a Commercial Loan Right for You?
The Process
Commercial Loan Process
Scoping Discussion
We talk through the property, the purpose (owner-occupier or investment), your structure (individual, company, trust, SMSF) and your income evidence options. This usually sets the realistic LVR and lender shortlist.
Indicative Pricing
We come back with two or three indicative quotes from suitable lenders, including the all-in cost (rate, application fee, valuation, legal) so you can compare like-for-like.
Property Valuation
Commercial valuations are more involved than residential — they include lease analysis, market rent comparison and capitalisation rate. We order this in parallel with the application.
Formal Application & Credit
We package the application — financials, ATO portals, lease documents, statement of position — and submit to the lender’s commercial credit team. We manage queries and conditions through to approval.
Settlement
We coordinate with your solicitor and the lender’s settlement team. For owner-occupiers, this is also when business banking arrangements may transfer. We help manage the moving parts.
FAQ
Commercial Lending Questions
What’s the maximum LVR for a commercial loan?
It depends on the asset class and whether you’re owner-occupying or investing. Owner-occupier commercial in standard asset classes (offices, retail strip, light industrial) can go to 80% LVR with some lenders. Investment is typically capped at 70–75%. Specialised securities like service stations or child-care are often capped lower.
Do I need a deposit or can I use equity?
Equity in an existing property — residential or commercial — can be used in place of a cash deposit. We’ll structure a cross-collateralised or stand-alone facility depending on what protects you best long-term.
How are commercial rates different from residential?
Commercial rates are typically 0.5% to 1.5% above comparable residential rates, reflecting the higher risk lenders attribute to the asset class. Lease doc and specialised security loans price higher again. Non-bank commercial lenders price differently to majors — sometimes more competitive, sometimes less.
What’s the difference between full doc and lease doc?
Full doc commercial uses your business financials and personal tax returns to demonstrate serviceability. Lease doc uses the property’s lease income, an accountant’s certification and your personal credit history. Lease doc is faster but typically priced slightly higher and capped at lower LVRs.
Can I borrow through my SMSF to buy a commercial property?
Yes — if your SMSF holds the property, you can borrow inside the fund using a limited recourse borrowing arrangement (LRBA). This is most common for small businesses wanting to buy their own premises through their super. Lender appetite is more limited than residential SMSF, but several lenders do offer it. We work with them regularly.
Discuss Your Commercial Purchase
Free initial consultation. We’ll scope the deal, indicate likely lenders and pricing, and tell you honestly whether it’s a transaction we think we can get over the line.
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