Commercial Finance
Can First Time Borrowers Get Commercial Property Loans?
5 min read- Finance Guide
- Updated 2026
Quick answer
Yes, but lenders assess experience and strength carefully
65% 80%
Typical lending range depending on the deal
- Typical deposit required 20% to 35%
- Stronger deals Easier to place
- Low experience May need more support
- Wrong lender choice Common decline reason
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First time borrowers are usually assessed on two main factors
The strength of the deal itself
Lenders look at the property type, purchase price, loan to value ratio, deposit size, and whether the security property fits standard commercial lending policy.
DEAL QUALITY
The borrower profile and repayment ability
Lenders assess income, business strength, asset position, credit profile, and whether the borrower has enough financial depth to support the loan despite limited borrowing history.
BORROWER STRENGTHWhat helps a first time borrower get approved
The stronger these areas are, the more comfortable a lender may be
-
Good deposit or equity contribution 20% to 35%
-
Stable income and repayment capacity Essential
-
Standard commercial property with strong appeal Preferred
For example, a first time borrower purchasing a $900,000 commercial property with a 30% deposit, solid income, and clean financials may be viewed far more favourably than a borrower with a small deposit and no clear servicing strength.
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What lenders want to see
Even if you have never taken out a commercial property loan before, lenders will usually review:
Deposit or available equity- Personal or business income
- Financial statements and tax returns
- Credit history
- Purpose of the property purchase
If these areas are strong, lack of prior commercial borrowing experience may be less important.
Experience still helps, but it is not everything
Lenders may also consider whether the borrower has relevant experience connected to the property or business. Important factors can include:
Industry experience- Ownership of other property
- Track record running a business
A borrower can still be first time in commercial lending while showing plenty of strength elsewhere.
What type of first time borrower scenarios can work
First time commercial property finance can suit a range of borrower types.
Common examples include:
Business Owners
Buying business premises
Owner occupiers moving into their own property
First Time Investors
Purchasing leased property
Borrowers entering commercial property investment
Expanding Operators
Growing into commercial assets
Established businesses taking their first commercial loan
The right lender and the right structure can make a major difference for first time borrowers.
Common problems first time borrowers face
Many first time borrowers can qualify, but certain weaknesses often make approval harder than it needs to be.
Insufficient Deposit
A smaller deposit can increase lender concern, especially when the borrower has no prior commercial loan history.
Possible solutions include:
-
Using equity from another property
-
Reducing the loan amount
-
Adding extra security where appropriate
Weak Serviceability
If income does not comfortably support the proposed repayments, lenders may decline or scale back the facility.
Clear financials, stable income, and lower existing debt can improve the position.
Non Standard Property
Specialised or harder to sell commercial properties can be more difficult for first time borrowers to finance.
More standard property types are often easier to place with mainstream lenders.
Applying With The Wrong Lender
Some lenders are more comfortable with first time commercial borrowers than others, and policy fit matters.
Matching the deal to a lender that understands the scenario can materially improve approval chances.
Steps to get Commercial Property Finance as a First Time Borrower
Step
01
Work out what property you want to buy and how it will be used.
Step
02
Confirm your deposit, equity position, and preferred borrowing amount.
Step
03
Prepare financial documents, tax returns, and supporting information.
Step
04
Present the deal clearly, including property purpose and repayment strategy.
Step
05
Submit the application to a lender that suits first time commercial scenarios.
Step
06
Once approved, proceed through formal approval, documentation, and settlement.
Speak with a Development Finance Specialist
Commercial property finance can vary significantly depending on the borrower, the property, the deposit, and the lender's policy.
A specialist can review your scenario and help determine which lenders may be open to a first time commercial borrower.
Speak with a finance specialist about your commercial property scenario.
Submit the short form below and a specialist will review your enquiry and discuss possible funding options.
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