Commercial Finance
Commercial Investment Property Loans Australia
5 min read- Finance Guide
- Updated 2026
Quick answer
Commercial investors may borrow up to
60% 75% LVR
For leased commercial property - assessed against rent, lease and borrower strength
- Typical LVR range 60% to 75%
- Deposit usually needed 25% to 40%
- Rental income Often used
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1300 421 044
Detailed explanation
Commercial investment property finance is different from owner occupied commercial lending. The property is bought primarily for rental income and capital growth, so lenders focus heavily on the lease, tenant quality, property type, vacancy risk, yield and the borrower’s capacity to handle repayments if rent is interrupted.
How commercial investment property loans are structured
A commercial investment mortgage commonly includes:
Loan secured by the commercial property- Deposit, equity or cash contribution
- Assessment of rent, lease and tenant quality
- Principal and interest or interest only options
- Bank, non-bank, company, trust or SMSF structures
Typical commercial investment ranges:
- Typical LVR 60-75%
- Deposit often 25-40%
- Rent may support servicing
- Lease strength matters
How Lenders Assess Investment Deals
Lenders usually review:
Purchase price and valuation- Rental income and net yield
- Lease term, options and expiry profile
- Tenant quality and payment history
- Commercial property type and location
- Loan to value ratio and deposit
- Borrower servicing and asset position
What Affects Borrowing Capacity
Borrowing capacity depends on:
- Deposit size or available equity
- Property income yield
- Borrower income and financial position
- Vacancy risk and outgoings
- Tenant quality and lease length
- Property type such as retail, office or industrial
- Bank or non-bank lender appetite
For Buy-To-Lease Property:
Rental income may support loan servicing- Long leases and strong tenants improve approval quality
- Multiple tenants can reduce single-tenant exposure
- Vacant property usually needs stronger borrower income or more equity
Typical examples:
- A leased warehouse may be assessed on rent and tenant strength
- A retail shop may need stronger lease evidence and location support
- A vacant office may need more deposit or additional income evidence
- Specialised assets can have lower LVRs and fewer lender options
Need Help Buying Commercial Property?
Common problems
Commercial investment property loans can be declined or reduced when the rent, lease, property type or borrower structure does not match lender policy.
Low LVR or higher deposit needed
Commercial investment loans often need more deposit than residential investment loans, especially for specialised or vacant property.
Possible solutions include:
- increase cash deposit or usable equity
- use additional property as security where suitable
- reduce the loan amount or improve serviceability
- choose a lender suited to commercial investment property
Weak lease or tenant profile
Short leases, vacant property, weak tenants or poor rental history can reduce borrowing capacity.
Possible solutions include:
- provide signed lease documentation
- show rent payment history and tenant quality
- support the loan with stronger borrower income
- refinance after securing a stronger lease
Wrong property or lender fit
Some lenders avoid hospitality, service stations, mixed-use, specialised assets or regional commercial property.
Possible solutions include:
- match the lender to the property class
- provide additional security if appropriate
- increase deposit contribution
- consider non-bank lending, low doc or refinance options
Steps to Buy Commercial Property as an Investment
Step
01
Confirm property type, price, deposit and target LVR
Step
02
Review borrower structure, income and servicing
Step
03
Assess lease terms, tenant quality and rental income
Step
04
Submit application with lease and property documents
Step
05
Complete valuation, credit assessment and approval
Step
06
Settle the purchase and manage lease obligations
Speak With A Commercial Investment Finance Specialist
Commercial investment property finance can vary significantly depending on the property type, lease, tenant, rent, borrower structure and deposit position.
A specialist can review the property, lease and borrower position to identify which commercial lenders may suit the deal.
Speak with a finance specialist about your commercial investment property loan
Submit the short form below and a commercial finance specialist will review your property, lease position and possible funding options.
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Call us to discuss your commercial investment property finance
Additional Questions
You may also find these questions helpful
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01What deposit do you need for a commercial investment property loan?
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02How much can you borrow for a commercial property investment?
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03How do lenders assess commercial rental income?
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04Can you buy vacant commercial property with finance?
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05What interest rates apply to commercial investment property loans?
