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Commercial property · owner-occupied and investment
Commercial property, assessed on the asset
Commercial lending is assessed differently from residential: lower loan-to-value ratios, shorter terms, and a much closer look at the tenant and the lease.
Expect commercial lending to look less generous than residential on paper. Loan-to-value ratios are typically lower, terms shorter, and lenders will want to understand the lease, the tenant's covenant and the property's re-lettability if the tenant leaves. That is not pessimism, it is how the category is priced.
Owner-occupied commercial — buying the premises your own business trades from — is often assessed more favourably than a passive investment, because the lender can see the trading income supporting the loan directly. If that is your situation, say so early, because it changes which lenders are worth approaching.
What it covers
- Offices, warehouses and industrial units
- Retail premises and shopfronts
- Buying the premises your business already occupies
- Investment purchases with existing tenants
- Refinancing existing commercial debt
- Mixed-use properties
What you get from us
Lower ratios are normal
Commercial lending sits well below residential loan-to-value ratios. Plan the deposit accordingly.
The lease is assessed
Term remaining, tenant quality and re-lettability all shape what a lender will do.
Owner-occupied is treated better
Trading from the premises you are buying often improves the terms available.
Terms are shorter
Commercial terms are typically shorter than a residential mortgage, with review points.
Eligibility
What lenders look at
- You're 18 or over and an Australian citizen or permanent resident
- You have some regular income — from work, self-employment, superannuation, investments or a pension
- You're borrowing an amount you can service comfortably — most of our panel starts around $10,000
- You can comfortably meet the repayments alongside your existing commitments
Every lender on the panel weighs these differently, so none of it is a fixed cut-off — send the enquiry and we'll tell you honestly what is and isn't available. If money is already tight, the National Debt Helpline offers free, independent financial counselling, with nothing to sell you.
Enquire about commercial property
Two minutes. No credit check.
Common questions
Before you enquire
How much deposit do I need for commercial property?
Substantially more than residential. Commercial loan-to-value ratios are lower across the board, and the exact figure depends heavily on the property type, the lease and whether you will occupy it. We will give you a realistic figure for your specific situation rather than a headline number.
Is commercial lending regulated like a home loan?
Generally no. Lending predominantly for business or investment purposes usually falls outside the National Credit Code, which means the consumer protections that apply to a home loan do not apply in the same way. That is worth understanding before you sign.
Does the tenant matter?
Considerably. A long lease to a strong tenant supports the loan. A short lease, a vacant property or a specialised building that would be hard to re-let all tighten what lenders will offer.
Can I buy commercial property through my SMSF?
It is possible under a limited recourse borrowing arrangement, and buying business premises through a fund is a common structure. It is also technical, and you should have your accountant and financial adviser involved from the start rather than after an offer is made.
Tell us about the property and the lease
Commercial finance turns on the specifics. The more you can tell us upfront, the more useful our answer will be.
Start an enquiry