Commercial Property Finance

Commercial property finance is funding used to purchase, refinance, develop or access equity in commercial real estate. It can be used for owner-occupied business premises, commercial investment properties and a wide range of other commercial property transactions.

The commercial property generally forms part of the security for the loan. We assess the property, loan purpose, purchase price or valuation, deposit or available equity, business cash flow and overall financial position, then compare suitable options across our panel of 80+ banks and non-bank lenders.

Commercial property finance can be used to purchase business premises, acquire an investment property, refinance an existing commercial mortgage, release equity, renovate or improve a property, consolidate eligible business debt or fund certain commercial property developments.

Finance can be available for warehouses, factories, industrial properties, offices, retail premises, shops, medical and professional suites, hospitality properties, storage facilities and other eligible commercial real estate. Lending criteria vary depending on the property type, location and intended use.

Yes. Owner-occupied commercial property finance allows your business to purchase the premises it operates from, potentially giving you greater control over your property costs and building equity in a business asset rather than continuing to lease.

Yes, subject to eligibility. Commercial investment property finance can be used to purchase income-producing commercial real estate. Lenders may assess the property's rental income, tenants, lease terms, location, value and your overall financial position.

Borrowing capacity depends on the property value, loan purpose, deposit or available equity, business or rental income, existing commitments, credit profile and ability to service the debt. Commercial property facilities can range from smaller transactions through to multi-million-dollar loans.

There is no single deposit requirement. The contribution required depends on the property type, location, borrower strength, loan purpose and lender. Standard commercial properties may qualify for higher loan-to-value ratios than specialised or higher-risk properties.

Potentially. Higher-LVR commercial property finance may be available for some borrowers and property types. Additional security or equity in another eligible property may also help reduce the amount of cash required.

Potentially. Available equity in eligible residential or commercial property may be used to support a commercial property transaction, subject to valuation and lender criteria.

Maximum loan-to-value ratios vary significantly between lenders and property types. The strength of the borrower, property location, security, loan purpose and whether the property is owner-occupied or investment can all affect the maximum LVR available.

LVR means loan-to-value ratio. It measures the loan amount against the value of the property securing it. For example, a $700,000 loan secured against a property valued at $1 million represents a 70% LVR.

Rates vary depending on the lender, property type, loan amount, LVR, loan purpose, borrower strength, security and finance structure. We compare rates, fees and terms across suitable lenders and negotiate pricing where possible to help secure a competitive deal.

They can be. Commercial property finance is assessed and priced differently from residential home lending. The rate depends on the property, borrower, LVR, loan purpose and overall risk of the transaction, so commercial rates can vary considerably.

Commercial property finance can be available over a range of terms, depending on the lender, property and transaction. Some facilities may have a longer amortisation period but be subject to periodic reviews or a shorter contracted loan term.

Yes. Principal and interest repayments are commonly available, allowing you to progressively reduce the loan balance over the finance term.

Potentially. Interest-only periods may be available for some owner-occupied, investment or other commercial property transactions. Availability and the length of the interest-only period depend on lender criteria and your circumstances.

Potentially. Low-doc commercial property finance may be available to eligible borrowers using alternative income verification rather than a complete set of traditional financial statements and tax returns. Requirements, maximum LVRs and pricing can differ from full-doc lending.

Yes. Commercial property finance is commonly available to self-employed business owners and ABN holders. Lenders may assess your business income, financial statements, tax returns, BAS, bank statements or alternative income verification depending on the product.

Potentially. A short trading history can reduce the available options, but factors such as your industry experience, deposit, property, lease income, available security and overall financial strength can support an application.

Potentially. Previous credit issues don't automatically prevent you from obtaining commercial property finance. The nature and age of the credit issues, available equity, property quality, business performance and ability to service the loan will influence the options available.

Yes. Commercial property refinancing can be used to seek a more competitive rate, restructure repayments, change the loan term, consolidate eligible business debts or move to a facility better suited to your current circumstances.

Potentially. If your commercial property has sufficient equity, refinancing may allow you to access part of that value for legitimate business purposes such as working capital, expansion, equipment, another property purchase or business investment.

Potentially. Equity in an eligible commercial property can sometimes support a business finance facility, providing access to working capital at terms that may be more competitive than unsecured funding.

Potentially. Eligible business debts may be refinanced using commercial property as security. This can potentially reduce repayments or provide a more manageable structure, although extending debt over a longer term can increase the total interest paid.

Potentially. Subject to lender criteria, equity in commercial property may be used to refinance eligible business tax debt. Whether this is appropriate depends on the amount owed, available equity, rates, fees and overall finance structure.

Potentially. Commercial property may be purchased through companies, trusts and other structures, subject to lender requirements. Ownership structure can have important legal and tax consequences, so independent professional advice should be obtained.

Potentially. Eligible SMSFs may be able to borrow to acquire certain commercial properties using specialised lending structures. SMSF borrowing is subject to specific legal and superannuation requirements, so independent financial, legal and tax advice is essential.

Potentially, where the transaction and property meet the applicable superannuation rules. These transactions can be complex and should be reviewed by appropriately qualified legal, financial and tax advisers before proceeding.

Yes, subject to lender approval. Warehouses, factories and industrial properties are commonly financed, with the available LVR, rate and terms depending on factors such as location, property condition, use and borrower strength.

Yes. Eligible offices, professional suites, shops and retail properties can be financed for owner-occupation or investment purposes.

Potentially. Specialist properties may be financeable, but lender appetite and required contributions can differ from standard commercial real estate. The property's location, alternative uses, valuation and income can be particularly important.

Potentially. Funding may be available for renovations, improvements and certain fit-out costs, either as part of the commercial property facility or through separate business finance.

Potentially. Development finance is generally structured differently from a standard commercial property loan. Lenders may assess the land value, development costs, approvals, project feasibility, borrower experience, presales or leasing arrangements and expected completed value.

Potentially. Depending on the project, finance may be structured to cover the site acquisition and subsequent development costs. These transactions usually require a detailed feasibility assessment and specialist commercial property finance structure.

Usually. The lender will generally require an acceptable valuation of the property before unconditional approval or settlement. This helps determine the security value and maximum amount the lender is prepared to advance.

Requirements vary, but you may need identification, ABN or company details, financial statements, tax returns, BAS, bank statements, existing debt details, a contract of sale, property information and evidence of your deposit or equity. Investment properties may also require lease and rental information.

Indicative decisions may be available quickly, but commercial property finance generally takes longer to complete than straightforward unsecured business lending. Valuations, financial assessment, legal documentation and security requirements can all affect the timeframe.

Settlement timing depends on the lender, property, finance structure and whether all valuation, legal and documentation requirements have been completed. It's important to allow sufficient time for finance approval when negotiating a commercial property contract.

There can be. Depending on the transaction, costs may include application or establishment fees, valuation fees, legal costs, settlement fees and ongoing facility charges. Government taxes and charges may also apply. We compare the overall cost of finance rather than focusing on the headline interest rate alone.

Potentially. Early repayment conditions vary depending on whether the facility has a fixed or variable rate and the lender's terms. Break costs, discharge fees or other charges may apply, so repayment flexibility should be considered when selecting a facility.

Getting an initial quote with Overdrive does not require an upfront credit check. We can assess your property and requirements and compare suitable options before progressing to a formal application. If you choose to proceed, the selected lender may conduct credit enquiries as part of its assessment.

Commercial property finance can be suitable if you're buying your business premises, investing in commercial property, refinancing an existing facility or accessing equity for another business purpose. The right structure depends on the property, deposit or equity, cash flow, loan purpose and your longer-term objectives.