Retail Property Loans
Specialist retail property loans from $500K to $100M+.Â
Shopping centres, strip retail, franchise locations and more. Rates from 6.80%. Up to 70% LVR. We find the right options from our 60+ lenders who are actively writing retail loans. Free consultation.
Current rates, LVRs and loan structures for retail property loans
Retail property loans finance the purchase of retail real estate across Australia, from a single shop or strip retail tenancy to franchise sites, neighbourhood centres and large shopping complexes.
Retail property finance rates currently sit at 6.80% - 9.95% p.a. for established, tenanted retail with quality covenants. We typically see rates at the upper end of that range for discretionary retail, shorter lease profiles or higher-LVR positions, while 6.80% is generally reserved for prime retail anchored by essential-service or national tenants on long leases. Owner-occupiers buying their own shop can often access up to 70% LVR, with investors and discretionary-heavy centres typically a step below.
- Interest rates 6.80% - 9.95% p.a.
- Loan term 1 - 30 years
- Repayment P&I or Interest-only
- Maximum LVR Up to 70%
- Typical LVR range 55% - 70%
- Deposit range 30% - 45%
- Loan range $500k – $100M+
- Settlement 14-26 days
- Lender panel 60+ specialist lenders
All information is general guidance only. Your actual rates and terms may differ from those on our commercial property loan interest rates page. Not financial advice. Please read our important disclaimer.
Types of retail property we finance
We arrange retail property loans across the full range of retail real estate in Australia, from a single shop or strip tenancy to franchise sites, neighbourhood centres and large shopping complexes. Lenders price retail by category and tenant strength, not just location, so our 60+ specialist lender panel is matched to the three risk tiers below, for both owner-occupiers and investors.
Essential & neighbourhood retail
Centres and shops anchored by supermarkets, pharmacies, medical or government tenants, plus convenience strip retail near transport and housing. These generate foot traffic regardless of the economic cycle, so lenders treat them as the lowest-risk retail and compete hardest to fund them. Neighbourhood centres with essential anchors can reach up to 70% LVR. This is the sharpest end of retail pricing.
Strip retail, shops & franchise sites
Single shops, high-street strip retail and franchise tenancies, the most common entry point for owner-occupiers and first-time retail investors. A business owner buying their own premises, or an investor buying one or two strip shops, is assessed on lease tenure, location and the strength of the trading business behind it. Owner-occupiers buying their own shop can often access higher LVRs than passive investors.
Shopping centres & large format
Sub-regional and regional shopping centres, plus large format and bulky-goods retail. These are assessed on tenant-mix diversity, anchor covenant and weighted average lease expiry (WALE) rather than a single LVR band, with larger complexes priced case by case. Discretionary-heavy centres face tighter scrutiny than essential-anchored ones, so structuring and lender selection matter most here.
Over 60 business lenders. One specialist broker.
Our lending panel includes major banks, regional banks, specialist non-bank lenders, and private credit providers, including lenders who only deal through accredited brokers directly.
Nadine Connell
Commercial Finance Broker
Owner-occupier, investor or SMSF buyer: which retail loan pathway suits you?
Retail buyers typically fall into one of three pathways, and each shapes your lender pool, deposit position and structuring. You may be an owner-occupier buying a shop to trade from, an investor chasing yield from leased retail, or buying retail through your self-managed super fund. All three are ways of acquiring retail real estate; what changes is how lenders assess the deal.
| Comparison criteria | Pathway 01 Owner-occupier | Pathway 02 Investor | Pathway 03 SMSF buyer |
|---|---|---|---|
| What drives the application | Buying a shop to trade your own business from, where the retail space is owner-occupied rather than leased to a third party, often making the purchase competitive against years of rent | Acquiring leased retail for income, where the focus is yield, the strength of the sitting retail tenant and the security their lease provides over the loan term | Purchasing retail inside your super fund, commonly to lease back to your own business at market rent, holding the asset in a tax-advantaged structure for retirement |
| What lenders assess | Your business trading position and serviceability, the strength and location of the shop, and your time in business, owner-occupiers attract the sharpest retail LVRs and pricing | Tenant covenant strength and WALE, whether the anchor is essential or discretionary, the lease structure, and how much of the rental income the lender will count toward serviceability | The fund's position and contributions, the lease to the related party at arm's length, and the retail asset itself, with LVR more conservative than a standard purchase |
| Typical LVR | Up to 70% for strong owner-occupiers buying their own shop | Generally a step below owner-occupier, with tenant quality, anchor type and WALE driving where it lands | More conservative again, typically around 65% for retail held in super |
| Best suited for | Retailers ready to stop renting and buy their own shop, from a single strip tenancy to a standalone retail building | First-time and experienced retail investors wanting leased retail with a clear income profile, from one strip shop to a neighbourhood centre | Business owners with an established SMSF who want to own their shop through super and lease it back to the business |
- What drives the application
- Buying a shop to trade your own business from, where the retail space is owner-occupied rather than leased to a third party, often making the purchase competitive against years of rent
- What lenders assess
- Your business trading position and serviceability, the strength and location of the shop, and your time in business, owner-occupiers attract the sharpest retail LVRs and pricing
- Typical LVR
- Up to 70% for strong owner-occupiers buying their own shop
- Best suited for
- Retailers ready to stop renting and buy their own shop, from a single strip tenancy to a standalone retail building
- What drives the application
- Acquiring leased retail for income, where the focus is yield, the strength of the sitting retail tenant and the security their lease provides over the loan term
- What lenders assess
- Tenant covenant strength and WALE, whether the anchor is essential or discretionary, the lease structure, and how much of the rental income the lender will count toward serviceability
- Typical LVR
- Generally a step below owner-occupier, with tenant quality, anchor type and WALE driving where it lands
- Best suited for
- First-time and experienced retail investors wanting leased retail with a clear income profile, from one strip shop to a neighbourhood centre
- What drives the application
- Purchasing retail inside your super fund, commonly to lease back to your own business at market rent, holding the asset in a tax-advantaged structure for retirement
- What lenders assess
- The fund's position and contributions, the lease to the related party at arm's length, and the retail asset itself, with LVR more conservative than a standard purchase
- Typical LVR
- More conservative again, typically around 65% for retail held in super
- Best suited for
- Business owners with an established SMSF who want to own their shop through super and lease it back to the business
What lenders look for in retail property loan applications
Eligibility for retail property loans turns on more than your credit history alone. Lenders underwrite both the property and the borrower position, so your background, the retail asset itself, and the strength of the income stream all factor into the assessment. Five factors drive most decisions, and the quick check gives an indicative view of where you sit across each one.
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Deposit position Most retail lenders expect a 30% - 45% deposit, with owner-occupiers and essential-anchored centres accessing the lower end. Discretionary retail, first-time investors or weaker-covenant assets typically need a stronger deposit alongside cleaner financials.
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Borrower profile Owner-occupier deals lean on your business's trading position and how well the shop suits your operation. Investor deals draw on commercial property experience and balance sheet strength. SMSF buyers are assessed on the fund's position and the arm's-length lease back to the business.
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Retail category and location Essential, discretionary or experiential retail are assessed very differently. Essential-anchored retail in established catchments attracts the sharpest terms, while foot traffic, visibility and catchment demographics lift strip and standalone shops in lenders' eyes. Discretionary-heavy assets face closer scrutiny.
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Tenant covenant and WALE For investors, the tenant covenant and WALE are among the biggest drivers, a longer lease to a national, essential-service or government tenant generally unlocks better terms. For owner-occupiers, it is your business's serviceability and how well the shop suits how you trade.
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Compliance and credit history Clean credit history with no recent defaults, court judgments or current ATO arrears. For retail specifically, fit-out specificity matters too, a highly specialised fit-out can be harder to re-lease, so lenders weigh how readily the space would suit a new tenant if the current one vacates.
Quick eligibility check
Five questions, takes about 30 seconds
Do you have a 30% - 45% deposit for your retail purchase?
This can be cash, equity in another property, or SMSF funds. Discretionary retail or first-time investors typically need more.
How are you buying the retail property?
Different buyer types have different lender pools and assessment focus.
What's your borrower profile?
Lenders weigh your trading or investment background as a primary credit factor.
What kind of retail is it, and where?
Retail category and location shape lender appetite and pricing materially.
What's the tenancy or use position?
Income stream stability is what lenders use to assess serviceability.
Retail property finance assessment
Analysing your retail property finance eligibility...
How retail property loans work in Australia
A retail property loan is a commercial mortgage secured against retail real estate, whether a single shop, a strip tenancy, a franchise site or a shopping centre. It is a discipline of its own within commercial property finance, with a narrower lender pool and different metrics than industrial property finance or office property lending, because lenders weigh retail category and tenant strength more heavily than almost any other asset class.
A retail property loan is three assessments running in parallel
When we write a retail property deal, the lender runs three assessments in parallel, not one. Two shops at the same purchase price can attract very different terms depending on tenant covenant, retail category or borrower profile, even when the buildings look identical on paper. How each assessment is presented determines the terms you actually win.
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The property
Sets the ceilingThe lender's valuation determines maximum exposure. Retail category, location, catchment demographics, foot traffic and re-leasing potential all factor into what can be lent.
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The income stream
Determines your positionHow close to that ceiling you actually get. Tenant covenant, anchor strength and WALE for investors, or business serviceability and how well the shop suits how you trade for owner-occupiers.
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The borrower
Decides who competesYour profile shapes which lenders compete for the deal. Specialist retail lenders, generalist commercial real estate lenders, non-bank lenders and SME business banks each play different roles.
The tenant mix, and the cost of finding out late
On an investment retail property, the tenant mix and lease profile can move your LVR more than your balance sheet does.
We see buyers move on a leased retail property because the yield looks strong, without reading the lease and tenancy schedule closely first. The rent is healthy, the price is right, the lender's preliminary indication is supportive. Then the valuer reviews the tenancy, flags that the anchor is a discretionary retailer exposed to online competition, that the WALE is short, or that the tenant holds an early break option, and the lender re-prices the deal, cutting the LVR and sometimes the loan amount.
By that point the deposit is committed, the LVR offer has been cut, and the deal economics have shifted. Some buyers walk away. Others accept terms they would not have accepted at the start. The buyers who avoid this are the ones who get the lease and tenancy schedule reviewed before they sign anything.
A long lease to a strong, essential-service tenant is the single biggest lever on an investment retail property. A short remaining term, an early break clause, a discretionary tenant exposed to e-commerce, or an under-market rent review can all quietly reshape what a lender will offer. The buyers who win better terms are the ones who arrive at the lender already understanding their tenancy.
"On retail deals, the buyers who get the best terms aren't always the ones with the strongest balance sheets. They're the ones who understand their tenant mix and WALE before they sign anything."
Nadine Connell, Commercial Finance Broker
How the same retail property looks under an essential versus discretionary tenant profile
A $5M retail investment purchase. Same building, same location, same purchase price. The only variable is the tenant profile, an essential-anchored centre on a long lease versus a discretionary-heavy centre with a shorter lease. The numbers below are illustrative only and vary by deal, lender and specific tenant.
What drives the $500K reduction?
- LVR cap by tenant strength Lenders trim LVR when the anchor is discretionary or the WALE is short, reflecting the risk of vacancy and re-letting cost if a tenant exposed to online competition leaves before the loan is comfortably serviced from rent.
- Lender pool restriction Mainstream lenders compete hardest for essential-anchored retail on long leases. A discretionary-heavy profile narrows the field toward lenders comfortable pricing retail re-letting risk, which typically lifts the rate.
- Income shading on serviceability With a shorter remaining term or weaker covenant, lenders shade the rental income harder when testing serviceability, or look through to a vacant-possession scenario, both of which reduce how much they will advance.
Numbers are illustrative for clarity. Real LVR and lender appetite depend on the specific tenant, lease terms, retail category and your borrower profile. A discretionary tenant mix is not a dealbreaker, and we often secure strong terms by matching the deal to a lender comfortable with the retail profile.
6 mistakes that cost the most on retail property loans
These six come up again and again on retail deals. Each one can cost tens of thousands of dollars or stall an otherwise clean purchase. Here is the mistake, what it costs, and what to do instead.
| The mistake | What it costs | Do this instead |
|---|---|---|
| Using the face rent on a leased shop to estimate your borrowing power | An approval well below expectation once the rent is shaded and a short WALE is discounted | Run the shaded income and check the WALE before you make an offer |
| Making an offer before reading the lease and tenancy schedule closely | A cut to your LVR at valuation when a short WALE or early break option surfaces | Get the lease and WALE reviewed before you sign anything, not after |
| Treating essential and discretionary retail as if lenders price them the same | A narrower lender pool and a higher rate when a discretionary deal goes to the wrong credit team | Position the retail category honestly and match it to lenders who price that type |
| Overlooking a highly specialised fit-out on a single-tenant shop | A weaker valuation and harder re-letting, since a one-operator fit-out is costly to re-lease | Weigh how readily the space suits a new tenant, we present that case to lenders |
| Taking the deal straight to your bank and accepting its first assessment | A conservative offer from a lender that does not actively price retail covenant and WALE | Match the deal to the specialist lenders actively writing retail right now |
| Sizing your deposit to the headline maximum LVR rather than your likely one | A funding gap at settlement when the actual LVR lands below the advertised ceiling | Size your deposit to the lender’s likely LVR for your profile, not the maximum |
See how much you could borrow for retail property
Enter what you can bring to the deal to get an estimate of your maximum loan and property purchase price. Final terms depend on full lender assessment of the retail property, the income stream, and your borrower position. Call 1300 262 098 for a free consultation.
Indicative estimate only, not a loan offer or financial advice. Income is assessed at a rate above the one you enter and against a minimum interest cover, the way lenders stress-test serviceability, so your real capacity depends on full lender assessment. For more tools, visit our commercial property resource centre.
Who lends on retail property, and how they differ
Retail finance is not a single market, and it is the asset class where lender appetite varies most. The same purchase can be priced very differently depending on which type of lender writes it, and only a portion of the panel actively pursues retail at any given time. Here is how the main lender categories approach retail property loans, and where each one tends to win.
| What to compare | Big 4 & major banks | Specialist & non-bank lenders | Private capital |
|---|---|---|---|
| Typical LVR | Up to 70% for owner-occupiers and essential-anchored retail, a little lower for discretionary investors | Competitive on retail the majors find harder, often matching on LVR with more flexible criteria | More conservative, commonly 50% to 65%, with the deal speed mattering more than the last few points of LVR |
| Rate posture | Sharpest pricing for essential-anchored, long-leased retail with strong covenants and clean borrowers | A modest premium over the majors, priced for the specific lease and covenant rather than a rigid box | Highest cost of the three, reflecting speed, flexibility and appetite for the harder deals |
| Tenant and lease appetite | Prefer a long WALE and a strong covenant, supermarket, essential-service, national or government tenants assessed most favourably | Comfortable with shorter WALE, discretionary tenants and the odd vacancy, where the majors hesitate | Will look at vacant or transitional retail and repositioning plays the banks will not fund |
| Best suited for | Owner-occupiers and investors with a clean, essential-anchored retail asset and straightforward serviceability | Deals just outside bank criteria, first-time buyers, single shops and shorter-lease or discretionary retail | Time-critical purchases, short-term positions, and retail being repositioned or re-leased |
| Typical speed | Slower, with fuller documentation and a more rigid credit process | Faster than the majors, with credit teams that engage directly on the deal | Fastest, with settlement in 14-26 days achievable where the deal warrants it |
Ready to discuss your commercial property finance options?
Book a free consultation today. I'll work through your specific deal, talk you through your lender options, and help you all the way from application to settlement. No obligation. No upfront fees.
- 1 Consultation. We review your deal, the property and your numbers.
- 2 Market approach. We approach the lenders most likely to write your deal.
- 3 Your options. You compare offers, choose, and we manage through to settlement.
Retail property loan questions, answered
The questions buyers most often ask me about financing retail property in Australia.
Eligibility and deal qualification
What types of retail property can be financed?
Retail property loans finance the full range of retail real estate: single shops, strip retail, franchise sites, neighbourhood centres, large format retail and shopping centres. I arrange finance across all of these, and each one carries different lender appetite.
In practice, essential-anchored retail, the kind led by a supermarket, pharmacy or medical tenant, sits at the top of the LVR ladder with the widest lender pool competing. Single shops and strip retail are still strongly supported, with the assessment leaning more on location, catchment and the strength of the trading business. Discretionary-heavy retail is assessed more cautiously. You can see the full breakdown on our commercial property types page, and the commercial property loans hub covers the wider category from retail through to industrial and office.
Which banks will lend on retail property?
Retail is the commercial asset class where lender appetite varies the most, and only a portion of the panel actively pursues retail at any given time. Part of the value a commercial real estate loan broker brings is knowing which lenders are pricing retail right now, and which have pulled back.
The Big 4 banks (CBA, Westpac, ANZ and NAB) stay selective on retail, focusing on prime locations with essential or national tenants. Regional banks such as Bank of Queensland and Bendigo show more flexibility for local strip retail. Non-bank and specialist lenders can price retail the majors will not touch, and private capital handles the time-critical and transitional deals. Matching your retail property to the right lender is the single biggest lever on your terms.
Can I buy a retail property through my SMSF?
Yes. You can buy retail property through a self-managed super fund, commonly to lease it back to your own retail business at market rent. A shop is business real property, which is the category the ATO allows an SMSF to acquire and lease to a related party, provided the arrangement is at arm's length.
The retail deal looks a little different inside super. The LVR is more conservative, typically around 65%, and the loan is held under a limited recourse borrowing arrangement. Because the compliance rules are specific, our SMSF commercial property loans page covers the full pathway, and the ATO ruling SMSFR 2009/1 sets out the business real property definition in detail.
Loan structure and LVR
What LVR can I expect on a retail property loan?
Retail LVRs typically sit between 55% and 70%, depending on who is buying and how the retail is tenanted. Within that range, the position varies by buyer and asset:
- Owner-occupier buying their own shop: up to 70%
- Owner-occupier first-time buyer: around 65%
- Investor, essential-anchored, long lease: up to 70%
- Investor, discretionary or short-lease retail: around 60%
- SMSF purchase: around 65%
Owner-occupiers and essential-anchored investors consistently access a higher LVR, because the lender is leaning on either your business or a recession-resistant tenant. The factors that move LVR most are tenant covenant and WALE for investors, and serviceability for owner-occupiers. Our commercial property loan interest rates page covers current pricing across categories.
How does buying as an owner-occupier compare to buying as an investor?
The difference comes down to what the lender assesses. As an owner-occupier, the loan leans on your retail business's trading position and serviceability, and you typically access the sharpest LVRs and pricing because the shop is occupied by a business the lender can assess directly.
As an investor, the loan leans on the tenant covenant, the lease and the WALE. A long lease to a strong, essential-service tenant can secure terms close to owner-occupier levels, while a discretionary tenant or short lease sits a step below. If you are deciding whether to buy your premises or keep renting, our buy vs rent calculator compares the long-term economics.
Are interest-only periods available on retail property loans?
Yes. Big 4 and major banks typically cap interest-only at three years, non-bank lenders often extend to five years, and private capital can sometimes structure full-term interest-only. Retail buyers usually choose interest-only to protect cashflow in the early ownership period, particularly through a fit-out or a gap between settlement and a tenant trading. The trade-off is a higher overall interest cost across the life of the loan. If you need funding for the fit-out or stock itself rather than the building, that sits with working capital finance.
Property, tenants and lease considerations
How do tenant mix and WALE affect my retail property loan?
On an investment retail property, the tenant mix and lease profile are the single biggest lever on your loan, often moving the LVR more than your balance sheet does. Lenders weigh the WALE, the weighted average lease expiry, against the strength and type of each tenant. A long lease to an essential-service or national tenant unlocks the best terms, while a short remaining term, an early break clause, or a discretionary tenant exposed to e-commerce can quietly cut what a lender will advance. For a deeper explanation, our guide on why WALE is the metric that matters walks through it. This is why I get the tenancy schedule reviewed before a client makes an offer, not after.
Can I get finance for a shopping centre or retail complex?
Yes, we arrange shopping centre finance for properties from neighbourhood strips through to sub-regional and regional centres. Lenders assess the tenant mix diversity, anchor covenant, occupancy and catchment demographics, and we can help you present these.
Neighbourhood centres with an essential anchor typically reach up to 70% LVR, while larger complexes are assessed case by case. Mixed-use retail with residential or office components can often attract more favourable terms, as lenders deem the income more diversified. The current market favours established centres anchored by supermarkets, medical centres and childcare, and especially government tenants, which are considered recession-resistant.
Is retail property harder to finance than other commercial property?
Retail typically faces tighter lending criteria than industrial or office property, because lenders price in e-commerce disruption, changing consumer habits and tenant turnover. A smaller share of the panel actively writes retail at any given time, which is exactly why broker selection matters.
That said, the right retail still finances well. Essential retail (supermarkets, pharmacies, medical, government services), convenience retail near transport, and experiential retail (gyms, restaurants) all remain attractive to lenders. The key is matching your retail category to the lenders who understand and actively seek it, rather than sending the deal to a credit team that has pulled back from retail.
Process and timing
How long does retail property finance take?
Retail finance timeframes vary by lender: Big 4 and major banks usually take 6 to 10 weeks, non-bank lenders 4 to 6 weeks, and private capital 1 to 3 weeks. The biggest accelerators are clean documentation, a clear lease and tenancy schedule ready at submission, and matching the deal to a lender I already know is writing your type of retail. The most common delays come from tenancy and WALE questions surfacing late, and valuation lead times. To get moving, book a free consultation and we can map the likely path for your deal.
Can I refinance a retail property loan?
Yes. Refinancing a retail property loan is common for owners who have held the loan 12 months or more, or whose rate now sits above the market. Refinancing is not only about a sharper rate, it can also be a strategic move to release equity for business growth, fund another purchase, or improve cashflow. For wider context on how retail markets are moving across the capital cities, our commercial property market insights cover the trends.
Related commercial property finance
Retail is one category among many. If your purchase spans more than a shopfront, or you want to compare your buyer pathway, these pages go deeper.
Other property types we finance
Buying something beyond a standalone shop? We finance the full range of commercial property, each with its own lender pool and assessment approach.
More to consider
Have a question? Just ask
Book a free, no obligation chat with our commmercial lending experts, or call 1300 262 098 to speak to our team.
