Refinance / Restructuring
Can Businesses Refinance Property Loans?
6 min read- Finance Guide
- Updated 2026
Quick answer
Many lenders will consider refinancing up to
60% to 70%
Of commercial property value, with stronger scenarios sometimes stretching higher
- Assessment bases Security + cash flow
- Loan structure options Term, IO, split debt
- Common purposes Rate cut, restructure, cash out
1300 421 044
1300 421 044
Key concepts in business property refinance
Commercial LVR
Business refinance is often capped lower than standard residential lending, so the loan to value ratio becomes one of the first filters in any refinance assessment
Property valuation
The incoming lender usually relies on a fresh valuation, which can affect maximum borrowing, pricing, and whether equity release is possible
Serviceability
Assessment may be based on trading income, lease income, guarantor support, or a blend of sources depending on the borrower and the property type
Refinance purpose
Rate reduction, debt consolidation, term reset, security substitution, cash out, and restructuring all influence which lenders and products may fit
Loan structure options
Business borrowers often refinance not just for price, but to build a structure that better matches rent cycles, business cash flow, entity ownership, and future plans.
Repayment type
Interest only or amortising
Businesses may choose interest only for flexibility, or principal and interest to reduce debt faster and improve long term equity
Rate type
Variable, fixed or split
Some borrowers want certainty, while others prefer flexibility, redraw access, or the ability to benefit if rates improve
Facility design
Single loan or layered debt
A refinance can combine term debt, overdraft, cash out, and multiple securities into a cleaner structure that is easier to manage
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Lender Criteria
Lenders normally review the following when assessing a business property refinance application:
-
01. Business financials, tax returns, BAS, and entity structureBorrower strength
-
02. Repayment history, liabilities, and conduct on the existing facilityCredit conduct
-
03. Property type, lease profile, location, and valuation outcomeSecurity quality
Common problems with Business Property Refinance
Valuation comes in low
A lower valuation can reduce maximum borrowing, shrink equity release, or mean the new lender will not clear the full outgoing balance without extra cash.
Possible solutions include:
Reduce the requested refinance amount- Add another acceptable security
- Target lenders that better understand the asset class
Existing debt is expensive to exit
Break costs, discharge fees, deferred establishment costs, and security release fees can materially reduce the benefit of moving to a new lender.
Possible solutions include:
- Compare total refinance savings, not just headline rate
- Time the switch around fixed expiry or review date
- Use the refinance to improve structure as well as pricing
Serviceability does not fit policy
The business may have been servicing the current debt, but the new lender may shade income differently, apply tighter interest cover, or dislike recent volatility.
Possible solutions include:
- Restructure debt across a longer term
- Use stronger lease evidence or updated financials
- Consider lenders with lease doc or specialist commercial policies where suitable
Steps to get business property refinancing
Step
01
Clarify the purpose of the refinance, whether it is rate reduction, restructuring, debt consolidation, or equity release
Step
02
Review current balances, property value, lease position, and target loan to value ratio
Step
03
Prepare business financials, tax returns, rent evidence, liabilities, and borrower entity documents
Step
04
Compare lenders based on policy fit, not just the rate, including term, fees, covenants, and flexibility
Step
05
Submit the application, complete valuation, and answer any credit or legal follow up questions
Step
06
Accept formal approval, discharge the existing lender, and settle the new facility with the revised structure in place
Speak with a Property Finance Specialist
Business property refinance can vary significantly depending on the asset, lease profile, borrower structure, financial performance, and the lender type being considered.
A specialist can review the current loan, identify refinance risks early, and help determine which lenders may actually suit the scenario rather than simply offering a lower advertised rate.
Speak with a finance specialist about refinancing your business property loan.
Submit the short form below and a property finance specialist will review your scenario and discuss possible refinance options, structure improvements, and lender pathways.
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