Commercial Property Loans Australia

A commercial property loan in Australia is finance used to buy, refinance or release equity from non-residential property held as an income-producing asset or business premises. This includes offices, warehouses, factories, retail shops, medical suites, childcare centres, industrial units and mixed-use buildings. Lenders assess the property type, lease profile, tenant quality, WALE, valuation, borrower entity structure, deposit and loan purpose together. Unlike home loans, commercial lending is more discretionary, meaning the same deal can receive very different responses from different lenders.

Most commercial property loans in Australia require a deposit or equity contribution of 25 to 40 percent of the property value. Standard, well-located assets with strong borrowers typically sit at the lower end of that range. Vacant, specialised or regional properties generally require a larger deposit. Lenders mortgage insurance is not available for commercial loans, so the full deposit must come from genuine savings or available equity. There is no commercial equivalent of a 5 or 10 percent deposit with LMI protection.

Commercial property loan LVRs in Australia typically range from 60 to 75 percent for standard assets. Some lenders will consider up to 80 percent for very strong borrowers with well-leased, well-located metro properties. Specialist, vacant or rural assets are often capped at 50 to 65 percent. The actual LVR available depends on property type and location, lease quality and WALE, borrower profile, documentation level and the lender's current credit appetite for that asset class.

Commercial property loan rates in Australia are influenced by lender type, LVR, property quality, lease strength, borrower profile, documentation level and broader wholesale funding conditions. Major banks typically price more competitively than non-bank or private lenders. Low doc or specialist asset scenarios carry higher rates to reflect the additional risk. Any rate range published online should be treated as general market context only. Actual rates depend on full assessment of the specific deal and cannot be confirmed without a formal application.

WALE stands for Weighted Average Lease Expiry. It measures the average remaining lease term across a property, weighted by each tenant's income contribution. A higher WALE tells lenders that rental income is likely to continue well into the loan term. A short or expiring WALE raises income uncertainty and typically results in a lower approved LVR or an outright decline from banks with strict lease requirements. WALE is one of the most important factors in commercial investment lending and is often the first thing a bank credit team asks about.

A home loan is primarily assessed on personal income, living expenses, credit conduct and the value of a residential property. A commercial mortgage also considers business cash flow, lease income, tenant quality, WALE, property type risk, outgoings structure, entity structure and the lender's appetite for that specific asset class. The assessment is more complex, the deposit requirements are higher, and lender policy is more variable. Commercial lending decisions are more discretionary, which is why matching the right lender to the deal matters more than simply comparing advertised rates.

A commercial investment property loan treats the asset as a passive income-producing investment. Lease income, tenant quality, WALE, yield and vacancy risk carry the most weight in the assessment. A business premises loan is used by a business owner buying the property they operate from. In that case, trading income, business cash flow, BAS statements, tax returns and director guarantees are the primary focus. The documentation required and the lender pathway can differ significantly between the two. See our page on buying business premises if you are purchasing property to operate your own business from.

Yes. Commercial investment loans are widely used to purchase income-producing commercial property across Australia. Lenders focus on the lease profile, including tenant quality, rental income, WALE, vacancy risk, property type, location and net yield. A long-term lease with a creditworthy tenant is significantly easier to finance than a vacant property or one with a short remaining lease. Both bank and non-bank lenders are active in commercial investment lending, though their LVR limits and assessment criteria differ.

Yes, subject to strict superannuation and lending rules. An SMSF can purchase eligible commercial property, most commonly business real property leased to the fund member's own business, through a limited recourse borrowing arrangement (LRBA). LVRs typically cap at 70 to 75 percent for SMSF commercial purchases. SMSF lending is technically complex and requires specialist lenders. Borrowers must obtain qualified financial, tax and legal advice before proceeding. See our SMSF property loans section for more detail.

Yes. Low doc commercial finance is available for self-employed borrowers, company directors and business owners who cannot provide standard full financial statements. Lenders may accept BAS statements, bank statements, accountant letters, lease income schedules or other supporting evidence instead. Low doc commercial products are still assessed carefully. They typically carry lower LVR caps, higher pricing and more conservative assessment than full doc commercial loans. See low doc commercial property loans for more detail.

Common documents for a commercial property loan include identity documents, entity documents such as company extracts, trust deeds and SMSF deeds, business financial statements including profit and loss and balance sheet, tax returns, BAS statements, bank statements, lease agreements and rental schedules, contract of sale, property details and evidence of deposit or equity. The exact list depends on whether the loan is full doc, low doc, lease doc, SMSF, refinance or short-term bridging finance. Incomplete submissions are the single biggest cause of delays in commercial lending.

Approval timelines range from a few days for simple, well-packaged deals with some non-bank lenders, to two to six weeks for complex scenarios. Key factors include valuation turnaround time, document completeness, borrower entity complexity, lender workload and whether additional information is requested mid-assessment. SMSF, low doc, vacant asset, specialist property and private lending scenarios typically take longer than standard full doc commercial applications. A clean, well-organised submission from the start materially reduces every stage of the process.

Not always. Consumer credit regulation, including responsible lending obligations under the National Consumer Credit Protection Act, generally applies to credit for personal, domestic or household purposes. Most business and commercial property finance falls outside this framework. This means certain borrower protections that apply to home loans may not apply to commercial lending. The lender's own policies and commercial loan terms govern the arrangement instead. Independent legal and financial advice is important before entering into any commercial finance agreement.

No. Property Finance Help is not a lender, broker, credit provider or financial adviser. We provide general information and referral support for commercial property finance enquiries and may connect you with a suitable finance contact where appropriate. We do not make credit decisions, provide personal credit advice, or receive commissions from lenders for placing loans. Your details are shared with a finance contact only with your consent.