Commercial Property Loans Australia

A commercial property loan is finance used to buy, refinance or release equity from property used for business or investment purposes, not as a personal residence. In Australia, this includes offices, warehouses, factories, retail shops, medical suites, childcare centres, service stations, industrial units and mixed-use buildings. Lenders assess the property, borrower, lease or income profile, deposit, entity structure and loan purpose together.

Most commercial property loans in Australia require a deposit or equity contribution of 25–40% of the property value. Standard, well-located assets with strong borrowers may sit at the lower end. Vacant, specialised or regional properties typically need more equity. Lenders mortgage insurance is not available for commercial loans, so the full deposit must come from genuine equity or savings.

Commercial property loan LVRs in Australia typically sit in the 60–75% range for standard assets. Some lenders consider up to 80% for very strong borrowers with well-leased, well-located properties. Specialist, vacant or rural assets may be capped at 50–65%. The actual LVR depends on property type, location, lease quality, borrower profile and the lender’s current credit appetite.

"Commercial property loan rates in Australia vary by lender type, LVR, property quality, lease strength, borrower profile, documentation level and broader funding conditions. Major banks may price differently from non-bank and private lenders. Any rate range should be treated as general market context only, not a quote, offer or guarantee. Actual rates depend on full assessment of the specific deal.

WALE stands for Weighted Average Lease Expiry, the average remaining lease term across a property, weighted by income contribution. A higher WALE gives lenders confidence that rental income is likely to continue through the loan term. A low or expiring WALE increases income uncertainty and typically reduces the LVR a lender will approve. WALE is one of the most important factors in commercial investment lending and is often overlooked by borrowers coming from a residential background.

A home loan is primarily assessed on personal income, living expenses, credit conduct and residential property value. A commercial property loan also assesses business cash flow, lease income, tenant quality, WALE, property type risk, outgoings, entity structure and the lender’s appetite for that specific asset class. Commercial lending is more discretionary, the same deal can be assessed very differently by different lenders, which is why lender matching matters as much as rate comparison.

Yes. Many Australian businesses use owner-occupied commercial property finance to buy premises they operate from instead of renting. Lenders review the business financials, cash flow, trading history, deposit or equity, property type and whether the loan repayments appear sustainable from the business’s operating income. This is assessed differently from a commercial investment loan.

Yes. Commercial investment loans are used to buy income-producing commercial property. Lenders focus on the lease profile; tenant quality, rental income, WALE, vacancy risk, property type, location and yield. A long-term lease with a creditworthy tenant is significantly easier to assess than a vacant property or one with a short remaining lease. Both banks and non-bank lenders are active in commercial investment lending.

Yes, subject to strict superannuation and lending rules. An SMSF can purchase eligible commercial property, most commonly business real property occupied by the fund member’s business, through a limited recourse borrowing arrangement (LRBA). SMSF lending is technically complex and requires specialist lenders. Borrowers must seek qualified financial, tax and legal advice before proceeding. See also our SMSF property loans information.

Yes. Low doc commercial finance may be available for self-employed borrowers, company directors and business owners who cannot provide standard full financial statements. Lenders may accept BAS statements, bank statements, accountant letters, lease income or other supporting evidence. Low doc products are still assessed carefully and typically have stricter LVR caps, higher pricing and more conservative assessment than full doc commercial loans.

Common documents include identity documents, entity documents such as company extracts, trust deeds and SMSF deeds, business financial statements (profit and loss, balance sheet), tax returns, BAS statements, bank statements, lease agreements and rental schedules, contract of sale, property details and evidence of the deposit or equity contribution. The exact list depends on whether the loan is full doc, low doc, lease doc, SMSF, refinance or short-term finance.

Approval can range from a few days for simple, well-documented deals with some non-bank lenders, to two to six weeks for complex scenarios. Factors affecting timing include the valuation turnaround, document completeness, borrower entity complexity, lender workload and whether additional information is requested. SMSF, low doc, vacant, specialist and private lending scenarios typically take longer. A complete, well-packaged submission from the start materially reduces every stage of the timeline.

Not always. Consumer credit regulation, including responsible lending obligations under the National Consumer Credit Protection Act, generally applies to credit used for personal, domestic or household purposes. Most business and commercial property finance falls outside this framework. This means certain borrower protections that apply to home loans may not apply to commercial lending. Independent legal and financial advice is important before entering any commercial finance arrangement. Property Finance Help provides general information and referral support only and does not provide personal credit advice or lending decisions.

No. Property Finance Help is not a lender, broker, credit provider or financial adviser. We provide general information and referral support for commercial property finance enquiries and may connect you with a suitable finance contact where appropriate. We do not make credit decisions, provide personal credit advice, or receive commissions from lenders for placing loans.