commercial Property Loans From The Experts
Commercial property loans from Australia’s specialist commercial finance broker. Expert guidance, competitive rates from 60+ lenders, 3,300 happy clients, and 15+ years of proven results.
Australia's Commercial Property Loan Specialists
When you’re ready to purchase commercial property, refinance existing loans, or develop your property portfolio, the right finance structure makes all the difference. Since 2009, we’ve helped Australian businesses and investors secure hundreds of millions of dollars in commercial property loans, navigating complex lending criteria and market changes to deliver optimal outcomes.
Commercial property finance isn’t just about interest rates—it’s about matching the right loan structure, lender, and terms to your specific business objectives and financial position. With access to 60+ lenders including the big 4 banks, regional lenders, and specialist commercial financiers, we find solutions where others see obstacles.
What Are Commercial Property Loans?
Commercial property loans are specialised finance products designed for purchasing, refinancing, or developing non-residential real estate. Unlike residential mortgages, these loans consider business cash flow, commercial viability, and property income potential alongside traditional lending criteria.
The Australian commercial property finance market represents over $250 billion in lending, with businesses and investors increasingly recognising the benefits of property ownership over leasing.
Commercial properties typically offer higher rental yields (5-8%) compared to residential (2-4%), making them attractive investment vehicles despite higher entry barriers (which we help you overcoome).
Current Commercial Property Loan Interest Rates - Australia
Market Rate Comparison - September 2025
Loan Type |
Interest Rates |
Maximum LVR |
Typical Terms |
|---|---|---|---|
5.95% - 9.52% |
80% |
1-30 years |
|
5.95% - 8.35% |
85% |
1-30 years |
|
6.20% - 8.20% |
70% |
1-25 years |
|
6.24% - 8.70% |
80% |
1-30 years |
|
6.00% - 15.00% |
70% |
12-24 months |
|
7.50% - 12.00% |
80% |
6-12 months |
Factors Affecting Your Rate
Property Factors
- Location and market demand
- Property type and condition
- Tenant quality and lease terms
- Specialised vs. general use
Borrower Factors
- Business trading history (2+ years)
- Credit score and payment history
- Asset position and security
- Industry sector outlook
Loan Factors
- LVR (lower = better rates)
- Loan amount (Min: $500,000)
- Loan term and structure
- Fixed vs. variable selection
Nadine Connell
Commercial Finance Broker
What's most important for your commercial property loan?
Your Likely Commercial Lender Match
Based on your priority:
Our 15+ years helping clients with commercial finance inform this potential match.
This tool provides general guidance only. Actual lender selection and commercial property loans rates depend on full assessment of your circumstances.
How to Choose the Right Commercial Property Loan
Decision Framework
Selecting optimal commercial finance requires evaluating multiple factors:
Define Your Objective
- Investment for rental income
- Owner-occupier business premises
- Development for profit
- Portfolio expansion
Assess Your Position
- Available deposit/equity
- Business financial strength
- Property management experience
- Risk tolerance
Match Loan Features
- Fixed vs variable rates
- Principal & interest vs interest-only
- Redraw facilities needs
- Early repayment flexibility
Consider Total Cost
- Not just interest rate
- Application and valuation fees
- Ongoing fees and charges
- Early exit penalties
How We Match You to the Perfect Commercial Loan
Our expert brokers evaluate every lender across these critical factors to ensure you get the best commercial property finance solution for your specific needs.
Your needs are assessed across 9 factors to match you the right commercial loan
Maximum LVR Offered
We match you with lenders offering the highest LVR for your property type - minimising your deposit requirement and maximising your purchasing power.
Interest Rate Competitiveness
We compare rates across 60+ lenders to secure below-market rates unavailable to direct applicants, potentially saving you tens of thousands.
Optimal Loan Terms
We structure terms from 1-30 years to balance your cash flow needs with total interest costs, ensuring sustainable repayments.
Repayment Flexibility
We negotiate features like redraws, offsets, and payment holidays that provide financial flexibility and save thousands over the loan life.
Security Requirements
We find lenders that minimise personal guarantees and additional security requirements, protecting your personal assets where possible.
Serviceability Assessment
We match you with lenders whose calculation methods maximise your borrowing capacity, often accessing 20-30% more than others.
Industry & Property Fit
We identify lenders who actively seek your property type and industry, ensuring smoother approval and better terms.
Settlement Speed
We fast-track applications with lenders who can meet your deadlines - some settling in just 48-72 hours for urgent transactions (ie. bridging).
Ongoing Relationship
We ensure you get dedicated support, annual reviews, and assistance throughout your loan term - not just at settlement.
Commercial Property Finance Mistakes to Avoid
Common Pitfalls That Cost Thousands
# |
Common Mistake |
Why It Matters |
Potential Cost |
Our Solution |
|---|---|---|---|---|
1
|
Inadequate Deposit Planning |
Don't forget costs beyond the deposit: stamp duty (3-5.5%), legal fees ($3,000-$10,000), valuation ($2,000-$5,000), and due diligence. Budget 40% of purchase price for total upfront costs. |
$50,000+
|
Detailed upfront cost calculators for accurate budgeting
|
2
|
Choosing Rate Over Structure |
The lowest rate isn't always cheapest long-term. A slightly higher rate with better features (redraw, offset, repayment flexibility) often saves more over the loan life. |
$30,000+
|
Model total costs including features, not just rates
|
3
|
Insufficient Due Diligence |
Rushed property assessments lead to problems. Always conduct building inspections, environmental checks, and tenant covenant reviews. The $5,000 spent here saves hundreds of thousands. |
$200,000+
|
Comprehensive due diligence checklists
|
4
|
Overlooking Lease Terms |
Banks assess lease quality heavily. Short leases, weak tenants, or below-market rents affect your borrowing capacity and rates. Review all leases before committing. |
10-20% capacity
|
Analyse lease quality impact before you commit
|
5
|
Single Lender Syndrome |
Applying to one lender risks rejection and credit file damage. Professional brokers submit to the right lender first time, protecting your credit score and maximising approval chances. |
Credit damage
|
Assess 60+ lenders before one strategic submission
|
6
|
Underestimating Timeframes |
Commercial settlements average 30-45 days. Building sufficient time buffers prevents expensive bridging finance or lost deposits. Start finance applications immediately after offer acceptance. |
$15,000+
|
Fast-track approvals with pre-positioned applications
|
Inadequate Deposit Planning
Don't forget costs beyond the deposit: stamp duty (3-5.5%), legal fees ($3,000-$10,000), valuation ($2,000-$5,000), and due diligence. Budget 40% of purchase price for total upfront costs.
Choosing Rate Over Structure
The lowest rate isn't always cheapest long-term. A slightly higher rate with better features (redraw, offset, repayment flexibility) often saves more over the loan life.
Insufficient Due Diligence
Rushed property assessments lead to problems. Always conduct building inspections, environmental checks, and tenant covenant reviews. The $5,000 spent here saves hundreds of thousands.
Overlooking Lease Terms
Banks assess lease quality heavily. Short leases, weak tenants, or below-market rents affect your borrowing capacity and rates. Review all leases before committing.
Single Lender Syndrome
Applying to one lender risks rejection and credit file damage. Professional brokers submit to the right lender first time, protecting your credit score and maximising approval chances.
Underestimating Timeframes
Commercial settlements average 30-45 days. Building sufficient time buffers prevents expensive bridging finance or lost deposits. Start finance applications immediately after offer acceptance.
The Current Commercial Property Market
Our research show that over the coming years, commercial property is forecast to grow at an annualised rate of 5.32% to 2030, which when combined with higher yields than residential property, provides an attractive opportunity for commercial property owners.
We have see the Australian commercial property finance landscape evolve significantly following recent RBA rate adjustments and regulatory changes. APRA’s strengthened commercial lending guidelines mean lenders are more selective, making broker expertise increasingly valuable.
Our clients are experiencing strong improvements in premium CBD offices, better conditions for some retail sectors, and growing demand for logistics, cold storage and data centre facilities.
Key Market Indicators
“We’re seeing a market where demand is outstripping supply. Quality commercial properties with strong fundamentals — good location, quality tenants, sustainable rents — are attracting very strong buyer interest, as well as competitive rates and terms from lenders. Secondary assets face more scrutiny, but that’s where broker expertise helps find the right lender match.“
– Nadine Connell, Commercial Finance Broker, Smart Business Plans
Current Market Trends
Regulatory environment tightens
New commercial lending standards mean we’re seeing more comprehensive documentation requirements and stricter serviceability assessments. Lenders are focusing on quality assets in prime locations with strong tenant covenants.
Downward interest rate pressure
Rates for commercial property loans currently range from 5.95% – 9.52% depending on the lender, property type, and loan structure. Variable rates remain popular, though fixed-rate options are gaining traction among some commercial mortgage applicants.
LVR requirements steady
Most lenders cap commercial property loans at 70-80% LVR, though some specialist lenders offer up to 90% for prime properties such as medical centres with strong tenant profiles. SMSF lending is usually capped to 70% LVR.
Settlement times slower
Standard settlements can now take 7-28 days or longer due to enhanced due diligence requirements. That’s why it’s important to call us as soon as possible. We help you streamline the commercial property funding process and reduce time to settlement.
Our Commercial Property Lender Network
Big Four Banks
The major banks (CBA, Westpac, ANZ, NAB) offer competitive rates for prime commercial properties with strong tenant covenants. They typically prefer properties in metropolitan areas with established businesses or blue-chip tenants.
Best for: Prime properties, established businesses, standard loan structures, competitive rates.
Regional Banks
Regional lenders often provide more flexibility in their assessment criteria. They can be good for unique properties or situations that don’t fit major bank criteria for commercial mortgage Australia applications.
Best for: Regional properties, unique properties, flexible docs and assessment.
Specialist Lenders
Specialist commercial lenders offer innovative products and can often achieve higher LVRs. They’re typically faster at assessment and more flexible with security arrangements for commercial real estate finance.
Best for: Higher LVRs, fast settlements, unique properties, innovative commercial structures.
Private Lenders
For time-critical transactions or unique circumstances, private lenders provide fast settlements and flexible terms. Rates are higher but you get speed and flexibility for urgent commercial property funding.
Best for: Fast settlement times, bridge finance, development projects, complex or unique situations.
Explore Commercial Property Loans
Browse by Commercial Property Loan Type
Browse by Commercial Property Type
Browse by Commercial Property Location
Frequently asked questions
What is a commercial mortgage and how does it work?
A commercial mortgage is a form of business loan designed to let your purchase commercial property. It can be used for purchasing business premises, or for investing in commercial properties.
Key features: Typically a 20-30% deposit is required, with terms ranging from 1-30 years, and interest rates from p.a. In most cases the property secures the loan, and lenders assess both property value and business cashflow for business owner-occupiers. Repayment options include principal & interest or interest-only periods up to 5 years.
How much deposit do I need for a loan to buy commercial property?
Owner-occupier: The typical deposit required for a commercial property loan is 20-30% of the property value.
Investment property: The typical deposit required for a commercial property loan is 25-35% of the property value.
Example: A $1M property would require $200K-$300K deposit, plus 5-6% additional costs (stamp duty, legal fees, valuations etc). Some specialist lenders offer up to 80% LVR for strong applications with prime properties and solid cashflow.
What's included in commercial property finance beyond the purchase price?
Additional costs total 5-6% of purchase price:
- Stamp duty (varies by state)
- Legal fees: $3,000-$15,000
- Building inspection: $1,500-$3,000
- Valuation: $2,000-$5,000
- Loan establishment: 0.5-1% of loan amount
It’s often possible to include these costs in your commercial property loan amount if you have sufficient equity. We advise you to budget approximately $50K-$90K in extra costs for a $1M property purchase.
What are current interest rates for commercial property loans?
- Owner-occupier: p.a.
- Investment property: p.a.
- Variable rates: Offer flexibility and offset account access
- Fixed rates: Typically 0.3%-0.5% higher, but provide budget certainty
- Interest-only: Add 0.15%-0.25% but reduce monthly payments
Why use a commercial property loan broker instead of going direct to banks?
There are many reasons to work with an experienced Commercial Property Loan Broker instead of going to a lender directly. The top advantages are:
- You get immediate access to 60+ lenders, some of whom are only accessible via an accredited broker vs single bank option
- You can often get access to better rates & terms through our lender relationships
- Your credit score will not be affected by negotiating with several lenders at the same time
- You can achieve higher approval rates via expert application structuring
- You will save a ton of time as we handle the entire process
- There is no upfront fee, and typically no cost to you as our time is compensated directly by the lender
How long does commercial property loan approval and settlement take?
Getting a commercial property loan can take anywhere from 1 to 12 weeks, with 4-8 weeks being the most common timeframe. Factors such as the complexity of the commercial loan and lender requirements affect the overall time required.
A common commercial property loan timeline:
- Pre-qualification: 1-2 weeks with complete documentation
- Formal approval: 2-4 weeks after property contract signed
- Settlement: 4-6 weeks from contract exchange
- Fast-track options: Some specialist lenders offer 2-3 week settlements
A critical factor that will affect speed to approval is your documentation completeness – incomplete applications can extend timeframes by 2-4 weeks. Our streamlined process and lender relationships typically achieve faster approvals than direct applications.
What commercial property documentation is required for loan approval?
Essential commercial property loan documents include:
- Business financials: Normally 2 years financial statements and tax returns
- Bank statements: 6 months business and personal accounts
- Property documentation: Contract of sale, building reports, rental appraisals
- Business plan: A business plan and cash flow projections are common requirements of a commercial property loan application. Unlike other brokers or lenders, we can prepare your business plan and cash flow forecast for you.
- Personal identification: Copies of your driver’s license, Medicare card, and asset statements are typically required. Refer to our full documentation checklist here.
Professional tip: Having complete documentation ready can reduce approval time by 50%. We can prepare business plans and cash flow forecasts if required by your chosen lender.
Have a question? Just ask!
One of our lending specialists will be in touch
