Refinance Your Commercial Property Loan in Australia

Yes, commercial property loans can generally be refinanced with a new lender or restructured with your existing lender. The new lender will assess the property, lease position, borrower financials and current loan terms before approving a refinance. Timing, break costs and valuation support all affect whether the switch makes financial sense.

Most banks offer up to 65% to 70% LVR on a commercial property refinance, depending on the asset type, location, lease profile and borrower strength. Specialist or non-bank lenders may consider higher LVR or more complex scenarios on a case-by-case basis. The valuation at the time of refinance determines the maximum borrowing amount.

Common refinancing costs include discharge fees from the outgoing lender, new application or establishment fees, valuation costs, legal and settlement fees, and potential break costs if exiting a fixed rate early. The total cost depends on the loan size, lender and whether you are switching from a fixed or variable rate. It is important to weigh the total cost against the potential savings before proceeding.

Yes, if the property has increased in value or you have paid down the loan, you may be able to release equity as part of the refinance. The amount available depends on the new valuation, the lender's maximum LVR for the asset type and your ability to service the higher loan amount. Equity release is commonly used for business working capital, further property purchases or debt consolidation.

Commercial property refinances typically take 4 to 8 weeks from application to settlement, depending on valuation turnaround, lender processing times and the complexity of the file. Deals involving multiple securities, SMSF structures or specialist lenders may take longer. Having clean documentation ready before you apply can help reduce delays.

Yes, most lenders require a new independent valuation of the commercial property as part of the refinance process. The valuation determines the current market value, which directly affects the LVR and how much the new lender will offer. The valuation considers the property condition, location, lease income, tenant quality and comparable sales.

Yes, SMSF commercial property loans can be refinanced, but the LRBA structure must be maintained throughout the process. The bare trust arrangement needs to be updated with the new lender's details. Fewer lenders offer SMSF refinancing, and you should obtain qualified financial, legal and tax advice before proceeding.

Typical documents include current loan statements, lease agreements or rental schedule, borrower financials such as tax returns and BAS, bank statements, entity documents for companies or trusts, property details and evidence of any recent capital works. Owner-occupied refinances also require business trading financials. The exact requirements depend on the lender and loan structure.