Commercial Property Loans

A commercial property loan is finance used to purchase, refinance or invest in property for business or commercial purposes. It can be used for owner-occupied premises, investment properties and a range of other commercial property transactions.

The property generally forms part of the security for the loan. We assess the property, loan purpose, deposit or equity, business financials, cash flow and overall application, then compare suitable options across our panel of 80+ banks and non-bank lenders to find a competitive rate and structure.

Commercial property finance can be available for offices, warehouses, factories, industrial properties, retail premises, 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. Commercial property finance can be used to purchase premises for your own business, allowing you to own the property your business operates from rather than continuing to lease.

Potentially. Commercial property loans can be available for income-producing investment properties, subject to the property, tenancy, rental income, borrower financial position and lender criteria.

Borrowing capacity depends on the property's value, loan purpose, deposit or available equity, rental income where applicable, business cash flow, existing commitments and your ability to service the debt. Commercial property facilities can range from smaller purchases through to multi-million-dollar transactions.

There is no single deposit requirement for every commercial property loan. The amount of equity required depends on the property type, location, loan purpose, borrower strength and lender. A stronger application or lower-risk property may qualify for a higher loan-to-value ratio than a specialised or higher-risk transaction.

Potentially. Higher-LVR commercial property finance may be available in some circumstances, depending on the strength of the borrower, property and overall transaction. Additional security can also sometimes reduce the amount of cash contribution required.

Potentially. Equity in eligible residential, commercial or other property may be able to support a commercial property purchase, depending on the lender and structure. This can reduce the amount of cash you need to contribute to the transaction.

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

They can be. Commercial property is assessed differently from residential owner-occupied lending, and pricing depends on the risk of the transaction, property, borrower and loan structure. The most competitive option isn't always the lender with the lowest advertised rate, so fees and loan conditions should also be compared.

Commercial property loan terms vary considerably. Depending on the lender, property and transaction, finance may be structured over several years or significantly longer. The loan may also have a different review period from its overall repayment or amortisation period.

Commercial property finance may be structured with principal and interest repayments or, in some circumstances, interest-only repayments. Repayment frequency and structure depend on the lender, property, loan purpose and your financial position.

Potentially. Interest-only periods may be available for some commercial property loans, particularly investment or certain commercial transactions. Eligibility, duration and pricing depend on the lender and application.

Potentially. Low-doc commercial property finance may be available for eligible borrowers who cannot or don't want to provide a complete set of traditional financial statements. Alternative verification may be required, and low-doc lending can have different rates, LVR limits and eligibility requirements.

Yes. Commercial property finance is commonly available to self-employed business owners and eligible ABN holders. The lender will assess factors such as business performance, income, cash flow, credit profile, deposit or equity and the property being financed.

Potentially. A shorter trading history can reduce the number of available options, but other factors such as industry experience, deposit, equity, security, property income and overall financial strength may support an application.

Potentially. Credit issues don't automatically rule out commercial property finance. Specialist options may be available depending on the nature and age of the credit issues, available equity, property, business performance and ability to service the loan.

Yes. Commercial property refinancing can be used to seek a more competitive rate, restructure repayments, extend or change the loan term, consolidate eligible business debt or release equity for another business purpose.

Potentially. If you have sufficient equity in an eligible commercial property, refinancing may allow you to access part of that equity for legitimate business purposes such as working capital, equipment purchases, expansion, renovations or another property acquisition.

Potentially. Eligible business debts may be refinanced using commercial property as security. This can potentially provide a longer repayment term or lower rate than some unsecured debts, but extending debt over a longer period can increase the total interest paid.

Potentially. Commercial property can be purchased through various structures, including companies and trusts, subject to lender requirements. The appropriate ownership structure can have legal and tax implications, so professional legal and tax advice should be obtained before purchasing.

Potentially. Commercial property finance may be available for eligible SMSFs under specialised lending structures and strict requirements. SMSF property transactions can be complex, so independent financial, legal and tax advice should be obtained before proceeding.

Potentially, subject to superannuation law, the property and transaction meeting the relevant requirements. These arrangements require specialist legal and financial advice and should be structured correctly before contracts are entered into.

Yes, subject to lender approval. Warehouses, factories and other industrial properties are commonly financed using commercial property loans. The property type, location, valuation, use and borrower strength will influence the available options.

Yes. Eligible offices, professional suites, shops and retail premises can be financed for owner-occupation or investment purposes, subject to lender criteria and the strength of the transaction.

Potentially. Finance may be available for specialised properties, although lender appetite and deposit requirements can differ from standard offices, warehouses and retail premises. The property's alternative use, location, valuation and income can be particularly important.

Potentially. Depending on the transaction, funding may be available for renovations, improvements or fit-out costs as part of the property finance or through a separate business or fit-out finance facility.

Potentially, but property development finance is different from a standard commercial property loan. Development funding is generally assessed on factors including the project, site value, development costs, approvals, experience, presales where applicable and expected end value.

LVR stands for loan-to-value ratio. It compares the amount you're borrowing with the value of the property securing the loan. For example, borrowing $700,000 against a property valued at $1 million represents a 70% LVR. Maximum LVRs vary depending on the property, lender and transaction.

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

Usually. The lender will generally require an acceptable valuation of the property before final approval. The valuation helps determine the property's security value and the maximum amount the lender is prepared to advance.

Timing varies more than with a straightforward unsecured business loan because commercial property transactions can involve valuations, financial assessment, legal documentation and security checks. Indicative decisions may be available quickly, but unconditional approval and settlement generally take longer.

There can be. Costs may include establishment or application fees, valuation fees, legal costs, settlement fees and ongoing facility fees, depending on the lender and transaction. Government charges may also apply. We compare the overall finance package rather than looking at the interest rate alone.

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

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