Commercial property loans, with the lease read first.
Commercial property loans in Australia live or die on the tenant, the lease, and the valuation method. The right lender is the one whose policy matches all three.
Asset classes we finance.
Six common categories. Each has its own LVR ceiling, rate band, and lender shortlist. When the purchase is going inside super, SMSF commercial property covers the structure and the lender shortlist for that path.
Office
CBD suite, suburban office, professional rooms. Valuation method and tenant covenant drive both LVR and rate.
Retail
Strip retail, shopping centre tenancies, neighbourhood centres. Lease term and tenant mix matter heavily.
Industrial
Warehouse, factory, logistics units. Generally the most lender-friendly asset class when the tenant is solid.
Owner-occupied business premises
Your own business buying its operating premises. Often sits inside an SMSF as business real property.
Mixed use
Shop-with-residence-above style. Lender treats each component separately for LVR and policy.
Specialised
Childcare centres, medical suites, service stations. Specialist lenders, tighter LVR, but doable.
What drives the deal.
Four levers that move LVR, rate, and approval likelihood on every commercial file. If you're sourcing the asset as well, a commercial buyer's agent reads the lease and the tenant covenant before you bid.
- 01Tenant covenant
ASX-listed national tenant on a long lease prices very differently from a local sole trader on month-to-month.
- 02Weighted average lease expiry (WALE)
Longer WALE means more income certainty, which the lender rewards with a sharper rate and higher LVR.
- 03Property and location
Metropolitan vs regional, A-grade vs B-grade, zoning. All feed into the valuer's yield assumption.
- 04Borrower position
Trading history, balance sheet, and other security available. Sometimes the deal is about the borrower more than the building.
Typical numbers.
- Typical LVR
- 65% to 75% (80% owner-occupied)
- Loan term
- 15 to 25 years
- Interest-only
- Up to 5 years available
- Valuation method
- Income capitalisation (rent / yield)
- Fees
- GST-inclusive in our quotes
- SMSF commercial
- Available, 70% to 80% LVR
For credit-related disclosures, see the Credit Guide.
How commercial property lending works.
65% to 75% is standard for commercial. Owner-occupied business premises sometimes go to 80% with the right lender. SMSF commercial caps at 70% to 80% depending on the lender.
Commercial loan terms are usually 15 to 25 years versus 30 for residential. Some lenders offer interest-only periods up to 5 years. Reviews every 3 to 5 years are common on the bigger end.
Commercial valuations rely on the income capitalisation method (rent divided by yield), not comparable sales. The valuer reads the lease, the WALE, the tenant covenant, and the outgoings. Valuation fees are higher than residential.
Yes. Lender fees, valuation fees, and most professional fees on a commercial transaction are GST-inclusive. We quote in GST-inclusive terms so you see the real number.
Yes. Commercial property is one of the better fits for an SMSF, especially business real property leased back to your own business. We arrange both the advice and the lending. See the SMSF hub.
Two years of tax returns and financials for the borrower, the lease for any tenant, a rental schedule if multiple tenants, ID, and information memorandum if available. We send a full checklist after the first call.
Continue reading
- Investment property loansResidential investment lending and portfolio structure.
- SMSF commercial propertyBusiness real property and commercial inside super.
- Buyer's agent for commercialAcquisition support for office, retail, industrial.
- Construction loansBuild-to-hold and commercial construction finance.
- Finance BrokingThe pillar page covering the full broking service.
- RefinancingRefinancing commercial debt when the review window opens.
A commercial deal is only as good as the structure.
A 30-minute call gets you a feasibility read, an LVR estimate, and a lender shortlist. Free, no paperwork to start.