Commercial Property Finance FAQs - Australia
What is commercial property finance?
Commercial property finance is structured lending used to acquire, refinance, or develop income-producing or owner-occupied property. Loans are assessed based on asset quality, lease strength, borrower profile, and lender appetite, with terms aligned to the investment strategy and risk profile.
How does commercial property finance work in Australia?
In Australia, commercial property lending is assessed on a combination of asset fundamentals, lease terms, tenant quality, borrower strength, and transaction structure. Lenders consider loan-to-value ratios, debt serviceability, and risk profile when determining terms, pricing, and approval conditions.
How is commercial lending assessed?
Commercial lending is typically assessed based on net rental income, lease agreements, asset type, location, borrower experience, and available security. Unlike residential lending, greater emphasis is placed on the strength of the asset and the transaction.
What types of commercial property can you assist with?
We assist with office, retail, industrial, mixed-use, and selected specialised assets. Each transaction is assessed based on lender appetite, lease profile, and the overall investment strategy.
What loan-to-value ratio (LVR) is typical for commercial property?
Loan-to-value ratios for commercial property typically range between 60% and 75%, depending on the asset, lease strength, borrower profile, and lender appetite. Higher or lower leverage may apply based on transaction risk.
Can you help with refinancing as well as acquisitions?
Yes. We assist with both acquisitions and refinancing. Refinancing can improve loan structure, reduce costs, release equity, or better align funding with your current investment strategy.
Do you work with investors and owner-occupiers?
Yes. We work with both investors acquiring income-producing assets and businesses purchasing their own premises. Each scenario is structured differently based on objectives, cash flow, and lender requirements.
How does commercial property finance differ from residential lending?
Commercial finance is more heavily driven by asset quality, lease terms, and transaction risk, whereas residential lending focuses more on personal income and credit. Commercial loans are typically more tailored and structured to suit the specific deal.
Can you assist with complex or non-standard scenarios?
Yes. We regularly structure funding for more complex transactions including multi-asset deals, mixed-use properties, development funding, and scenarios where standard lending options may not be suitable.
What information is required to assess a commercial property loan?
This typically includes property details, lease agreements, financial statements, borrower information, and details of the proposed transaction. Additional information may be required depending on the complexity of the deal.
How long does commercial finance approval take?
Timeframes vary depending on the lender, transaction complexity, and documentation. Indicatively, approvals can take anywhere from a few weeks to several weeks, particularly for more complex or structured transactions.
When should I speak to you about commercial property finance?
Ideally early in the process. Understanding your borrowing capacity, lender fit, and funding structure upfront can strengthen your position, reduce delays, and improve overall transaction outcomes.