Commercial Property Loans [Complete Guide 2026]

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We want to deliver an exceptional experience for our customers so we are only able to assist a limited number of people at a time. Our team is currently at maximum capacity so we are unable to assist with commercial property loans at this time.

Commercial property loans operate very differently from residential lending, with lenders focusing heavily on the income the property generates, the strength of the lease, and the long-term viability of the asset. Because risk varies widely across sectors like office, retail, and industrial, banks apply tighter LVRs, higher rates, and more complex assessment requirements. Understanding how lenders evaluate the deal — and how to prepare your application — makes a significant difference to approval speed and loan terms.

In this guide, we will navigate the ins and outs of commercial property loans, updated bank policies, non-traditional banking options, and the prevailing interest rates in this dynamic 2025 market.So whether you want to do it yourself or work with a mortgage broker in Brisbane, this article is for you.

If you’re seeking a commercial property loan coupled with the most competitive interest rate, you’ve come to the right place. So whether you want to do it yourself or work with a mortgage broker in Brisbane, this article is for you.

Key Takeaways About Commercial Property Loans

Commercial loans work very differently from residential finance.
They come with stricter criteria, higher costs, and more ongoing reviews.
Understanding the core differences helps you plan confidently and avoid surprises.

Commercial lenders do not offer Lender’s Mortgage Insurance (LMI).
You cannot borrow at high LVRs like residential loans.
Most lenders cap borrowing at 60%–70% LVR; high-risk or specialised properties may drop to 50%–55%.
You typically need a larger deposit, often 30%–40% of the purchase price.

Commercial loans usually have shorter terms: 5–15 years, sometimes up to 25–30 years for strong assets or low-risk borrowers.
Shorter terms can increase repayments, making cash flow forecasting crucial.
Particularly important for properties with variable rental income or upcoming lease expiries.

Commercial interest rates are generally higher than residential rates.
Rates are based on risk factors like property type, tenant strength, lease length, and vacancy profile.
You may face higher bank fees, including:
- Application and establishment fees
- Commercial property valuations
- Annual review or risk fees
- Legal charges for complex documentation
Fees vary widely; well-leased industrial properties may attract better pricing, specialised assets often cost more.

Most lenders review commercial loans every 12–36 months, depending on loan size and financial position.
Reviews reassess risk, verify lease income, and ensure ongoing compliance.
Before signing a lease, check:
- Rent aligns with market value
- Lease term supports your loan (lenders often prefer longer WALE)
- Outgoings and rent reviews are clearly defined
Strong leases support better pricing and smoother reviews.

The Fundamentals Of Commercial Property Loans

In this section, we’ll introduce you to the basics of commercial property loans. We’ll kick things off with how much you can borrow and then present various options across the Australian lending landscape.

How Much Can I Borrow?

The initial point of interest with commercial lending is the amount you can borrow, and it’s largely influenced by the security the lender holds.

Properties like shopping centres or offices are seen as more secure than an unsecured cash flow business. This guide focuses on secured commercial property loans:

You can borrow up to 100% if you have a guarantor or additional collateral for the loan.
You can borrow up to 75% if the property is valued at up to $2 million.
You can borrow up to 70% if the property is valued at up to $5 million. In simpler terms, for a $2 million commercial property, you’ll need a 25% deposit.

If the property is valued over $5 million and up to $100 million, lenders and banks will consider these on a case-by-case basis.

What Type of Security Can I Use?

A key difference between commercial and home lending lies in the security property. With commercial lending, the security is typically commercially zoned properties like factories or office buildings. Here are some common types:

Warehouses
Office Buildings
Shopping Centres
Factories
Shops
Land Subdivisions
Residential Property Development Finance
Block of Strata units
Block of Flats

If there are more than three units in one development, banks consider this as specialised property and will require a higher deposit. The deposit could be between 25-30%, depending on the price.

Higher-risk properties might demand a higher deposit and thorough valuation analysis. Here is a list of high-risk properties:

Short-term accommodations like motels, hotels, or caravan parks.
Aged Care facilities like residential care and respite centres
Child Care and Montessori centres
Petrol Stations and specialised retail outlets
Management rights
Shopping Villages and Neighbourhood retail centres
Englobo Land and speculative land banking sites

Different Types of Commercial Lending (Purpose)

The big difference between residential lending and commercial lending is that commercial lending is not regulated by the National Consumer Credit Protection Act (NCCP).

In other words, commercial property borrowers do not have the same consumer protections as home lending. The type of commercial lending purpose will ultimately affect how the lender will assess, and price your loan.

Investment – Lowest risk. Purchasing or refinancing a commercial property for rental purposes.
Owner Occupied – Medium risk. Purchasing or refinancing a commercial property for your own business operations.
Working Capital – High risk for most lenders. Funding for your business’s day-to-day operations.
Other – Other purposes beyond the above (e.g. buying a real estate agency business) are considered on a case-by-case basis.

The security property doesn’t decide whether or not the loan falls under the National Consumer Credit Protection. The purpose of the funds is what determines this.

For example, if you’re using a commercial property as security to borrow funds for a new home, the NCCP might apply, and some lenders may not approve your loan because of this.

Banks find commercial property investment the simplest and lowest-risk lending and may consider up to 75% LVR (meaning you only need a 25% deposit) on purchases up to $1 million.

What Income Do I Need For Commercial Property Loans?

Commercial lending is more relaxed when it comes to income verification because there are fewer legislative restrictions compared to residential lending. Lenders aren’t required by law to prove a borrower can afford the loan to the same extent as with home mortgages. This leads to more income verification options, such as:

Full Doc: You must provide the last 2 years’ tax returns and financial statements to show your income is higher than the interest costs.
Lease Doc: You only need to provide rental income from the investment. This income should be higher than the interest costs.
Low Doc: Basic income verification, like a letter from your accountant or BAS statements, is needed to confirm your income is higher than the interest costs.
Forecasted Income: Provide financials, including your profit and loss statements, to show expected business income growth to cover the interest costs.

Despite the more relaxed income verification requirements in commercial lending, lenders will not lend to individuals who can’t afford their loan repayments. It’s unrealistic to expect approval for a high-risk loan.

How To Qualify For A Commercial Property Loan

1. Show Strong Financials and Stable Cash Flow

Lenders want consistent financial performance. They review your business income, expenses, tax returns, and rental income. They usually assess:

Trading history of at least two years
Stable or growing revenue
Clean financial statements
Low debt compared to income
Strong cash reserves

Many lenders use the Debt Service Cover Ratio (DSCR) to measure repayment strength. A DSCR of 1.25x is common and means your income must cover repayments by at least 25%.

2. Demonstrate A Strong Lease or Tenant Profile

For investment properties, the lease often matters more than the borrower. Lenders review:

Lease length
WALE (Weighted Average Lease Expiry)
Tenant quality
Rent reviews and outgoings
Vacancy risk

A strong lease or national tenant improves your rate and borrowing power. Short leases or high vacancy risk can reduce your LVR.

3. Meet Deposit And LVR Requirements

Commercial loans require larger deposits. Most lenders cap borrowing at 60% to 70% LVR. Higher-risk assets may drop to 50%–55% LVR. This means you usually need a 30% to 40% deposit. Some lenders may allow you to use equity in another property, but cross-collateralising increases risk.

4. Provide Clear Documentation

Strong documentation speeds up approval. Prepare:

Two years of business tax returns
Two years of financial statements
Lease agreements and rent roll
BAS statements
Personal tax returns
Asset and liability summary
Bank statements
Identification

Low-doc or lease-doc options may require less paperwork, but they usually come with lower LVRs

5. Maintain a Strong Credit Profile

Lenders want borrowers with a reliable credit history. They look for:

On-time repayments
Low credit enquiries
No defaults or court actions
Low unsecured debt
Stable borrowing behaviour

A strong credit profile helps you secure sharper pricing.

6. Ensure the Property Meets Lender Criteria

Not all commercial properties qualify. Lenders assess:

Property type
Location and demand
Building condition
Zoning
Environmental risks
Valuation results

Industrial assets often receive better terms due to lower vacancy rates. High-risk assets may reduce your maximum LVR or lead to declines.

7. Prepare for Lender Reviews and Ongoing Conditions

Most commercial loans include regular reviews. Banks check your position every 12 to 36 months. Reviews assess:

Updated financials
Lease performance
Valuation changes
Cash flow

If performance drops, lenders may request changes to your loan. Strong financial management helps prevent issues.

8. Work With a Broker Who Understands Commercial Lending

Each lender has different commercial lending rules. A commercial mortgage broker can:

Compare policies
Negotiate pricing
Identify lender preferences
Prepare your documents
Manage valuation and lease reviews

This reduces delays and increases your approval chances.

Key Takeaway

You can qualify for a commercial loan by showing strong financials, a reliable lease, and a stable property. When you prepare early and meet lender expectations, you improve your loan terms and borrowing power.

Finding The Right Lender

In this section, we explore how to find the right lender for your needs, considering factors like interest rates and terms. The following steps will assist you in locating and securing the BEST commercial property loan.

Which lender does what?

Most lenders differ when it comes to risk tolerance, the types of security they specialise in, and how they verify income. Given the constant policy changes and multiple variables like security type, your income situation, the lender’s current risk appetite, and risk tolerance, it’s tough to give a general ‘this lender will be right for you’ statement. Each application and security property is unique.

Here’s a broad overview of the current commercial lending market in Australia:

Major Banks That Offer Commercial Loans

Most banks offer their own commercial property loan products and have limited areas of specialty. If you’re purchasing a simple investment like a warehouse or an office, they’re likely to offer some of the most competitive rates in the market. However, they typically cap their LVR at 65% for commercial property. Examples of the major banks include:

Smaller Banks & Building Societies

Non-major banks also offer commercial lending. They sometimes offer higher LVRs than major banks but may have higher rates and fees. However, they can be a good option if your tax returns aren’t up to date because they have added policy flexibility and alternative income considerations. Some examples include:

Adelaide And Bendigo Bank Group offers commercial loans through their wholly owned subsidiary, Sandhurst Trust.
Auswide Bank
Bank of Melbourne
Bendigo Bank
BOQ
BCU Bank
Bank Australia
ING Direct
IMB Bank
Suncorp Bank
St George Bank
Macquarie Bank

Specialty Lenders

Specialty lenders focus on riskier businesses that don’t fit within the bank’s credit policies. They are the go-to for options like low doc and lease doc. They can sometimes be more expensive due to the higher risk involved. Examples include:

Private Lenders

In the commercial lending space, hundreds of private lenders exist, usually composed of wealthy individuals or syndicates. They cater more to short-term lending (3 to 6 months) and charge interest per month instead of per annum. Examples include:

Securing a Better Interest Rate

The cost of funds varies among lenders in Australia depending on their funding sources. Generally, larger lenders with lower-risk appetites tend to offer lower rates.

Additionally, most of these lenders utilise a risk matrix to quote interest rates on significant transactions. They take into account several factors, such as:

Security property: This includes the location, suburb, and area of the property, its condition and appeal, the state of the surrounding market and competition, and economic conditions that may affect the property.
Sponsor/Loan Guarantor: They consider the level of interest cover and the ability to repay the loan, the Loan to Value Ratio, the net asset position, and the sponsor’s previous experience and track record. The team and other people involved in the transaction are also considered.
Lease/holding income: Factors such as the Average Lease Term (WALE), tenants’ details and their financial capacity, as well as their industry sector and how it might affect the rental are assessed.

As previously mentioned, commercial property loans are more complicated than regular home loans, which only factor in LVR, loan size, and loan amount.

If you’re interested in finding out which lender will offer you a low interest rate, call us at 1300 088 065 or get in touch online, and one of our Commercial Mortgage Brokers will get back to you.

Fees and Charges

When applying for a commercial property loan, consider the associated fees and charges, including establishment and deferred establishment fees. Always ask for the lender’s fee schedule before applying and confirm they do not have any early repayment fees applicable if you refinance or sell the property within a set period.

Commercial Property Loan Features

In this section, we’ll delve into the features of commercial property loans. We’ll start with the basic features and then guide you through the quickest and easiest way to identify the right loan features that cater to your specific needs.

Product Features

Unlike regular home loans, commercial loans usually have basic features. Here are some of the key characteristics:

Entities: Individuals, trusts, companies, or self-managed superannuation funds (SMSF) are eligible.
Loan term: Up to 25 years for commercial security (depending on the lease term).
Interest-Only Period: Up to 10 years is acceptable (depending on the lease term).
Extra repayments: Available on variable facilities.
Redraw: Sometimes available, depending on the lender.
Cash Out: Available, depends on the purpose.
Capitalised Interest: Available, depending on the purpose.
Internet Banking: Mostly available, depending on the lender.
Offset: Not generally available, depends on the lender.

Different lenders have distinct target markets, so their product features depend on that. For instance, lenders specialising in development and construction finance generally offer products with limited features.

General Security Agreement (GSA)

When applying for a commercial property loan, the bank might require you to sign a General Security Agreement or GSA. This is a form of security in addition to the property that gives the bank security over all the assets owned by a person or company acting as a guarantor to the loan.

If you have sufficient equity in the security property, your mortgage broker could negotiate the exclusion of the GSA. Factors that can help mitigate the need for a GSA include purchasing a standard commercial property, keeping the total lending under $1,000,000, demonstrating strong financials, and showcasing a strong business plan and experience.

Changing Banks: Is it Necessary?

Most banks will require you to switch all your business banking and lending to them as part of the deal if you’re purchasing your own commercial premises. However, it’s possible to switch lenders without moving your business banking.

You can do that by borrowing against a commercial or residential property, reducing the unsecured lending to below $1,000,000, negotiating the annual review requirement, or considering non-bank lenders.

If you need assistance in choosing the right lender without switching your business banking, feel free to reach us at 1300 088 065 or do a free assessment online.

Choosing A Lender

In this section, we’ll delve into a critical aspect of commercial lending: The HG Process. This method is a proven strategy that has helped clients save hundreds of thousands of dollars, and we are excited to share it with you.

The Process of Getting a Commercial Loan

Obtaining a commercial loan entails a more detailed procedure than a regular home loan. In commercial lending, significant time is spent upfront on the credit proposal and memo before it even reaches the bank’s credit team. If your mortgage broker has done a good job, they will receive offers from 2-3 banks.

Case Study: Retail Shop Purchase

Let’s consider the case of a client who recently bought a set of retail shops. Three different banks offered various lending terms:

Bank	LVR	Establishment Fee	Term	All in Rate
Bank 1	55%	0.40%	2.5 years	3.14%
Bank 2	55%	0.30%	3 years	3.00%
Bank 3 (clients existing bank)	50%	0.50%	3 years	3.30%

Using ‘The HG Process,’ we revisited all the banks, provided feedback on their offers, and gave each bank one last chance to fine-tune their rates. After the final round of negotiations:

Bank	LVR	Establishment Fee	Term	All in Rate
Bank 1	55%	0.40%	2.5 years	2.95%
Bank 2	55%	0.30%	3 years	2.80%
Bank 3 (clients existing bank)	50%	0.50%	3 years	3.00%

As you can see, bank 2 was the clear winner.

Surprisingly, Bank 2 emerged as the clear winner, even though Bank 3 was the client’s original bank. Notably, Bank 3 was the most expensive and offered less leverage.

The Impact of a 0.50% Rate Difference

You might wonder, what difference does 0.50% make? In this case, where the facility was worth $12,000,000, an extra 0.50% equates to an additional $60,000 per year or $180,000 over 3 years. This demonstrates how slight variations in rates can lead to substantial differences in the cost of a loan, thus emphasising the importance of diligent lender selection.

Annual Reviews

This section focuses on advanced tips and strategies concerning annual reviews in commercial lending. We’ll explore why annual reviews matter and discuss strategies to find lenders who do not necessitate these reviews.

Why Do Banks Need Annual Reviews?

In commercial lending, simply making your loan repayments on time isn’t sufficient. For larger loans, lenders often require regular access to your profit and loss statements to verify your financial health and your ability to continue repaying the loan. This scrutiny can range from quarterly Business Activity Statement (BAS) reviews to ongoing facility monitoring.

Common situations where lenders typically request annual reviews include:

When lending is over $2,000,000
When there are unsecured facilities involved
When specialty properties are used as security
When the Loan-to-Value Ratio (LVR) is high or outside regular parameters
When your repayments have fallen behind

In most cases, lenders will request to see your financials, including profit and loss and balance sheet statements, as well as a cash flow forecast. Some may even require a revaluation of your security property. Beware, if the valuation comes in lower, the bank could use this to label your commercial property as a higher risk, leading to an increase in the margin on your loan!

Which Lenders Do Not Require Annual Reviews?

If the prospect of annual reviews concerns you, let our team know. We can connect you with lenders who do not require such reviews. Several smaller lenders and some specialty lenders who offer commercial lending on 15, 20, or 25-year loan terms do not necessitate annual reviews.

For more information, call us on 1300 088 065, or leave your details here for our brokers to get in touch.

Mortgage Broker Or Bank

Commercial property lending is a highly complex field, made more intricate by banks’ practices of not publishing their interest rates and continuously modifying their lending policies. This is why many high-net-worth investors choose to deal with specialist commercial mortgage brokers when purchasing an investment property.

Why Choose a Mortgage Broker?

Being among Australia’s top commercial mortgage brokers, we have access to some of the best rates on offer, the kinds that banks do not typically advertise. Our clients benefit from:

Experience: With over $1 billion lent and hundreds of commercial property investors and developers assisted across Australia, we know how to guide you through the process. We are among Australia’s Top 10 Commercial Mortgage Brokers.
Specialisation: Our mortgage brokers are commercial lending experts. Having worked in bank credit departments, we understand the kind of finance that will yield the best result.
Deep Industry Relationships: With over a decade in the industry, we have strong relationships with the heads of banking in major banks and individual credit managers. Knowing the right person in the bank can make a significant difference to your application.
Sharp Pricing: We deal with commercial lending scenarios daily and understand the current market. When a loan is submitted to a bank by a broker, the bank knows it needs to be competitive to secure the deal.
Flexible Lending Policies: As mentioned earlier, we have access to 30+ commercial and specialty lenders, each with different risk appetites and funding sources. This gives you funding from various lenders, meaning less restrictive terms.

Will I Get a Better Deal Going Directly to the Bank?

A mortgage broker can often negotiate a better deal with your bank than you could directly. Commercial Relationship Managers in banks are incentivised on portfolio growth and their return on equity. Therefore, they focus primarily on the bank’s profit. This focus can result in you getting less favourable terms when dealing directly with the banker.

How Does a Commercial Mortgage Broker Help?

Our process begins with understanding your situation to assess whether we are a good fit. Once we have all your documentation and understand your goals, we negotiate with our panel of lenders to secure the best terms and interest rates. We then use ‘The HG Process’ outlined above to negotiate further reductions in margin and improvements in LVR and loan terms. We guide you throughout the process, assisting with valuations, formal approvals, and document signing.

How Much Do Commercial Mortgage Brokers Cost?

Unlike some brokers, we do not charge any fees if you are borrowing over $500,000 and keep the mortgage for at least two years. Like our Residential Mortgage Brokers, we are paid commissions by the bank to settle your commercial loan.

Common Traps And Deal Breakers In Commercial Finance

Buying commercial property can feel straightforward at first. However, several hidden traps can derail your finance approval. Lenders assess commercial deals very differently to residential loans, and small issues can trigger major delays or sudden declines.

Below are the most common deal breakers and how to avoid them.

Why Older Buildings, Asbestos, and Zoning Issues Trigger Lender Hesitation

Lenders scrutinise the asset’s condition because it influences long-term income stability. Older buildings often carry higher maintenance costs. They may also fail compliance checks, which increases lender risk.

Asbestos is another major issue. Many commercial properties built before 1990 contain asbestos materials. Lenders may require environmental audits or asbestos management plans before approval. These reports can delay settlement and increase upfront costs.

Zoning problems also cause fast rejections. A property zoned incorrectly for the intended use can breach council rules. Banks avoid lending on assets with zoning uncertainty because it may affect future resale value. Always check zoning certificates and town planning reports early.

Common red flags for lenders:

Asbestos registers missing or outdated
Unapproved building works
Incorrect zoning for the business type
Significant structural or compliance issues
Buildings older than 40 years without maintenance records

High-Risk Industries and Properties Lenders Often Avoid

Some commercial assets suit only a small pool of lenders. Banks classify certain industries as high risk because of volatile income or regulatory uncertainty. If your property falls into one of these categories, many lenders may decline the loan automatically.

Industries often viewed as high risk include:

Nightclubs, bars, and adult entertainment venues
Service stations and fuel depots
Cold storage and food processing facilities
Vacant industrial sites
Properties with single tenants in unstable industries

Additionally, lenders sometimes avoid specialised properties because they are hard to re-tenant. Examples include medical centres, childcare centres without strong operators, or buildings with heavy fit-outs.

Hidden Costs Buyers Don’t Anticipate When Getting Commercial Property Loans

Many first-time investors underestimate the due diligence costs for commercial property. Some of these costs are essential for lender approval, and failing to budget for them can cause serious delays.

Typical costs include:

Environmental reports (Phase 1 or Phase 2 assessments)
Full commercial valuations
Building and condition assessments
Quantity surveyor reports
Strata building reports
Legal reviews and lease audits

Environmental reports are especially important. Lenders often request them if the site has a history of industrial use. These reports check for contamination, soil hazards, and previous industrial operations. They help lenders minimise long-term liability.

How to Structure Your Deal to Avoid Last-Minute Lender Withdrawal

Last-minute lender withdrawal is more common in commercial lending than most people realise. It usually happens when new risks appear during due diligence. You can minimise this risk by structuring the deal correctly from the start.

Strategies that reduce lender hesitation:

Order valuations early to avoid unexpected shortfalls
Provide full lease documentation and trading history upfront
Confirm zoning and compliance before signing the contract
Request longer finance clauses to protect yourself
Use realistic rental assumptions in servicing calculations
Provide clear evidence of tenant stability and market demand

Working with an experienced commercial mortgage broker also helps. Brokers know which lenders accept older buildings, short leases, or specialised assets. They also help structure your application to highlight strengths and reduce red flags.

When your deal is structured correctly, lenders feel confident. This dramatically lowers the risk of sudden withdrawal close to settlement.

Case Study: Loan Declined Due To Short WALE — And How We Turned It Around

A commercial investor recently came to us after their bank declined their loan. The lender rejected the application because the property had a short WALE, with the main tenant’s lease expiring in less than 12 months. Many banks see this as high risk because a short WALE can affect rental stability and future cash flow.

However, a short WALE does not always mean the deal is unworkable. It simply means you need the right lender, the right structure, and a clear risk explanation.

What Went Wrong With the First Bank

The borrower had solid income and strong equity. Their challenge was the lease profile. The bank assumed the tenant might move out and treated the property as unstable. Because of this, the lender:

Reduced the property’s acceptable servicing income
Increased the risk weighting
Declined the loan due to “insufficient lease security”

This is common. Banks often set minimum WALE requirements of 2–5 years, especially for single-tenant assets.

How We Repositioned the Application

We reviewed the deal from scratch. The property was in a strong location with low vacancy rates. The tenant also had a long trading history. We helped the borrower strengthen the application by:

Demonstrating stable historical rental payments
Providing market evidence showing low local vacancy
Highlighting the tenant’s solid financial performance
Positioning the short lease as an upcoming value-add opportunity

This reframed the risk and aligned the deal with lenders that accept shorter WALE profiles.

How Working With a Mortgage Broker Made the Difference

Once we knew the deal no longer suited the first bank, we matched the client with a lender experienced in short-WALE commercial properties. This lender understood the tenant’s strong business history and local market conditions.

We secured:

A competitive commercial rate
A 70% LVR
A loan approval within ten business days

The borrower was able to settle on time and avoid losing the property.

The Outcome

By shifting the application to a more suitable lender, the client turned a declined loan into a successful purchase. The short WALE eventually became a negotiation advantage. The borrower renewed the lease at a higher rent, increasing both yield and valuation.

This case shows that a decline is not the end of the road. With the right strategy, the lender that declined you is rarely the only option.

Putting Your Best Foot Forward

With commercial lending, it’s critical to present a strong application rather than just filling out a bank’s form and emailing your paperwork. This involves highlighting your deal summary, security property overview, income and servicing position, and other critical details. A well-presented application can present a stronger case to the bank and address any concerns they may have.

Commercial Property Loans Frequently Asked Questions

What credit score do you need for a commercial real estate loan in Australia?

Lenders prefer a credit score of 650 or higher. Stronger scores improve approval chances and may lower interest rates.

How much deposit is required for commercial property?

Most lenders require 30% to 40% of the property value. High-risk or specialised assets may need higher deposits.

What is the average interest rate for a commercial property loan?

Rates vary by lender and property type. As of 2025, average commercial loans range from 6% to 8% p.a. depending on risk and LVR.

What type of loan is best for commercial property?

It depends on your goals. Owner-occupied loans suit business premises, while investment loans work for rental income properties.

What is the minimum down payment for a commercial property loan?

The minimum is typically 20–25%, but most lenders require 30–40% for safety and risk mitigation.

Which bank is best for a commercial loan?

Major banks like ANZ, NAB, Westpac, and Commonwealth Bank offer competitive rates. Specialty lenders often handle high-risk or complex deals better.

What is the difference between a business loan and a commercial loan?

A business loan finances business operations. A commercial loan uses property as security, often with longer terms and higher limits.

How is a commercial loan different from a residential loan?

Commercial loans have shorter terms, higher interest rates, larger deposits, and more lender reviews. Residential loans are regulated by the NCCP.

Can I use my SMSF to buy commercial property?

Yes. SMSFs can purchase commercial property if it complies with superannuation laws, including arm’s length dealings and investment strategy requirements.

What is WALE?

WALE stands for Weighted Average Lease Expiry. It measures the average remaining lease term across tenants and indicates income stability.

Can I get an offset account with a commercial property loan?

Some lenders offer offset accounts on commercial loans, but they are less common than with residential loans. Check with your broker for options.

Next Steps and Getting Your Commercial Property Loan

Our team at Hunter Galloway is here to help you get a commercial property loan in Australia. Unlike other mortgage brokers who are just one-person operations, we have an entire team of experts dedicated to helping make your home loan journey as simple as possible.

If you want to get started, please give us a call on 1300 088 065 or book a free assessment online to see how we can help.