Buy the premises you trade from, add an investment property to the portfolio, or refinance an existing commercial mortgage onto better terms. Owner-occupier, investment, SMSF and lease doc structures across 50+ bank and non-bank lenders.
At EasyAsset, commercial property finance is a core part of our business lending practice. Whether you are buying the warehouse, office, retail shop, consulting suite, or industrial unit your business already trades from, adding an investment property to the portfolio, purchasing business real property through a self-managed super fund, or refinancing an existing commercial mortgage onto sharper terms, we compare the major banks against second-tier and specialist non-bank lenders. We work with owner-occupiers, property investors, medical and dental practices, trades and manufacturers, and SMSF trustees across every Australian state and territory.
A commercial mortgage is assessed very differently from a home loan. The property, the lease, and the entity that owns it all carry as much weight as your income. Here is how the pieces fit together.
Commercial property is rarely bought in a personal name. It may sit in the trading company, a separate holding entity, a family or unit trust, or a self-managed super fund. The entity you choose drives the tax treatment, the asset protection, and which lenders will look at the deal, so it is worth settling with your accountant before you go to market.
A bank-instructed valuer assesses the property on market value and, where it is tenanted, on the strength and remaining term of the lease. That valuation sets the loan to value ratio. Standard office, retail, and industrial security in a metropolitan location typically supports 65% to 80%. Specialised or single-purpose property sits lower.
The valuation, not the contract price, sets your borrowing capacityA full-doc application is assessed on your lodged business financials and tax returns. A lease doc application is assessed on the rental income of the property alone, with lenders wanting the rent to cover repayments at an interest cover ratio of roughly 1.5 to 2.0 times. Owner-occupiers are commonly assessed on trading income with a notional market rent added back.
The lender registers a first mortgage over the property. Depending on the structure they may also take a general security agreement over the trading entity and personal guarantees from the directors. Where an SMSF is buying, the property is held in a bare trust and the lender’s recourse is limited to that asset alone.
First mortgage, usually supported by guaranteesAfter settlement you repay the facility over the agreed term, often with an initial interest-only period of 1 to 5 years while the business or the tenancy beds down. Many facilities are reviewed annually and can be refinanced or topped up as the property appreciates and equity builds.
Interest-only periods of 1 to 5 years are commonCommercial property finance is not one product. The right structure depends on whether you will occupy the premises, lease them out, buy inside a super fund, or build from the ground up.
For a business buying the premises it trades from. Assessed on your business financials, often with a notional market rent added back to serviceability because you will no longer be paying a landlord. This is the strongest commercial lending profile and attracts the sharpest pricing and highest LVRs.
Assessed on the property’s rental income rather than your tax returns. Suits investors and business owners whose financials are not yet lodged, provided the property is tenanted on commercial terms and the rent covers repayments at 1.5 to 2.0 times. Low doc alternatives rely on an accountant declaration or BAS statements.
A limited recourse borrowing arrangement lets a self-managed super fund acquire business real property and, uniquely, lease it back to a related business at full market rent. The property is held in a bare trust and the lender’s recourse is limited to that asset. Requires licensed SMSF and tax advice.
Progress-drawn funding for building or substantially refurbishing commercial premises. Sized against the as-if-complete valuation, with interest capitalised during construction and the facility converting to a term loan on practical completion. Fixed-price contracts with a licensed builder materially improve both pricing and LVR.
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What are you using the commercial property for?
Commercial lending is not credit-scored the way a home loan is. Each application is assessed on its merits, which means a deal one lender declines is often approved elsewhere.
The same building can be funded three completely different ways depending on who owns it and why. Here is how each structure plays out in practice.
Indicative figures only. Rates, LVRs, and structures depend on the property, the lease, and your financial position. SMSF examples are illustrative and are not financial or taxation advice.
Commercial mortgages carry more upfront cost than a home loan, largely because every valuation is instructed individually. Here are the components to budget for.
Full-doc owner-occupier and investment loans on standard security sit at the lower end. Lease doc and low doc facilities typically run from around 7.5% to 9.5% p.a. Private and short-term lending starts near 9% and rises with risk. Fixed, variable, and split options are all available, and fixed facilities carry break costs if repaid early.
A one-off fee charged when the facility is set up. Major banks sit at the lower end, while non-bank and specialist lenders charge more to reflect the tailored assessment. On a $1,500,000 facility this is typically $3,750 to $22,500. It is frequently negotiable on a competitive deal.
A bank-instructed valuation is mandatory and is paid by the borrower, usually $1,500 to $5,000 depending on property type and complexity. Lender legal and documentation fees add roughly $1,000 to $3,000. Specialised or larger properties may require a full narrative valuation, which costs more and takes longer.
Many commercial facilities carry an annual line fee on the approved limit plus an annual review fee, and some are formally reviewed every one to three years. Factor these into the total cost of funding rather than comparing headline rates alone, and check whether a review can trigger a repricing or a revaluation.
Adjust the sliders to estimate your repayments. Speak with our team for an exact quote based on your profile.
Commercial property carries more tax moving parts than any other business asset. Here is what to raise with your accountant before you sign a contract.
Fill in the quick form above. Tell us the property type, the price or valuation, your deposit or available equity, and whether the business will occupy it, lease it out, or buy it inside a super fund.
A specialist works out the right entity and product for your situation, then compares commercial mortgages across 50+ bank and non-bank lenders. Lender appetite varies sharply by property type and location, so we take the deal to the lenders that actually want it.
Conditional approval typically comes back in 3 to 10 business days. A bank-instructed valuation is then ordered, which usually takes 1 to 3 weeks depending on the property, and formal approval follows. Allow 4 to 8 weeks from application to settlement, and negotiate your finance clause accordingly.
Loan documents are issued, your solicitor and the lender coordinate the mortgage and the transfer, and the facility draws down at settlement. For a construction facility the funds instead release in stages against certified progress claims, converting to a term loan at practical completion.
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