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Commercial Finance
What Deposit do you need for a Commercial Property Loan?
5 min read- Finance Guide
- Updated 2026
Quick answer
Typical deposit range
20% 40%
Of the property's purchase price
- Owner-occupied From 20%
- Standard investment 25 - 30%
- High-risk properties 30 - 40%
- Max LVR (best case) Up to 80%
1300 000 000
1300 000 000
Deposit vs loan — split by property type
Commercial property loans are assessed differently from residential home loans.
Lenders focus on the risk of the property, the income generated by the property, and the financial strength of the borrower. Because commercial property can carry higher risk, deposits are usually larger than standard home loans.
Deposit vs lender contribution — by property type
Most lenders offer commercial property loans within these ranges
-
Owner-occupied — retail / office 20% deposit
-
Standard investment — retail / office 25-30% deposit
-
Warehouse / industrial investment 30-35% deposit
-
Specialised / higher risk property 30-40% deposit
Low risk properties → from 20% deposit- Standard investments → 25 - 30%
- Higher risk → up to 40%
The lender will normally fund the remaining portion as the loan.
Need Help with your Project?
Owner Occupied Commercial Property
If a business is purchasing property to operate from, lenders may offer higher loan amounts.
Owner occupied commercial loans may allow up to 80 percent loan to value ratio, meaning a deposit of around 20 percent.
80%
Max loan to value
20%
Min deposit required
Commercial Investment Property
Investment properties generally require larger deposits Typical deposit requirements include:
Retail Shops- Offices
- Warehouses
- Industrial Buildings
Many lenders require 25 percent to 35 percent deposit for commercial investment properties
Factors that Influence Deposit Requirements
Several factors influence how much deposit a lender requires
- Medium
- High
Property type
Specialised properties such as hotels, service stations, or medical facilities may require larger deposits
Borrower financial strength
Businesses with strong financials and stable income may qualify for lower deposits
Lease strength
If the property has a long-term lease with a strong tenant, lenders may offer higher loan amounts
Loan size
Smaller commercial loans sometimes have stricter deposit requirements
Common problems borrowers face
Borrowers often struggle to obtain commercial property finance because they do not have enough deposit
Limited cash deposit
Some buyers do not have enough cash available for the required deposit
Solutions may include:
-
Using equity from other property
-
Bringing in a business partner
-
Using additional security
Property considered high risk
Certain commercial properties are considered higher risk by lenders
Solutions may include:
-
Partner with an experienced developer
-
Start with a smaller project
-
Use first-timer specialist lenders
Weak Business Financials
If the borrowing business has limited income or trading history, lenders may reduce the amount they are willing to lend
Solutions may include:
-
Improve financial documentation
-
Provide additional security
-
Build trading history before applying
Incorrect Loan Structure
Many borrowers apply with lenders that do not specialise in commercial lending
Solutions may include:
-
Use a commercial finance specialist
-
Apply with specialist lenders
-
Compare bank vs non-bank options
Steps to get Commercial Property Finance
-
1
-
2
Determine how much deposit or equity you can contribute
Calculate your available cash and equity across all assets.
-
3
Prepare financial documents for the business or borrower
Gather business financials, tax returns, and lease documentation.
-
4
Confirm the property's value and expected rental income
Obtain a valuation — both are critical for lender assessment
-
5
Submit the loan application to commercial lenders
Apply with lenders that specialise in commercial property finance
-
6
Once approved, the loan settles and the purchase can proceed
Settlement occurs and ownership transfers to the purchaser
Speak with a Development Finance Specialist
Property development finance can vary significantly depending on the project size, location, approvals, and the developer's experience.
A specialist can review your project and help determine which lenders may be able to fund it.
Speak with a finance specialist about your development project.
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