Commercial Property Loan Interest Rates

Commercial property loan interest rates as at 01 March 2026 range from 5.95% p.a. Standard commercial loans start from 5.95%, owner-occupier rates from 5.95% – 10.05%, and investment property rates from 6.10% – 10.20%. Your actual rate will depend on factors such as the property type you wish to acquire, the locations of the property, your LVR and financial position.

Call our team on 1300 262 098 for a free quote. 

Your bank can certainly arrange a commercial property loan — but they can only offer their own products at their own rates, and they won’t tell you when a competitor is offering something better suited to your situation. In fact, we even had a situation where a client came to us after their regional bank manager said ‘I don’t understand commercial property loans, sorry’!

What we do differently at Smart Business Plans is access 60+ lenders simultaneously on your behalf — including major banks, regional banks, non-bank lenders, and specialist commercial financiers. More importantly, as specialise commercial finance brokers, we know which lenders have genuine appetite for your specific property type, location, and borrower profile right now. That changes constantly, and it’s not publicly advertised anywhere.

So the difference between going direct and working with Smart Business Plans often isn’t just the rate — it can be whether your application gets approved at all, and how quickly. As a broker, our service is also free to you as the borrower. We’re paid by the lender on settlement, so there’s no cost to getting specialist advice before you decide.

We find that commercial property loan interest rates are typically 0.5-2% higher than residential mortgages mostly due to increased risk and complexity.  However, commercial loans can offer unique benefits like higher loan amounts, longer interest-only periods, and tax deductibility for business purposes.

Your actual commercial property loan interest rate will be determined by a number of factors including your loan-to-value ratio (LVR), the property type and location your targeting, your business financials, the quality of the lease (if relevant), the size of the overall loan, and the current market conditions and lender appetites.

Medical centres and office buildings typically receive better rates than specialised properties for example. Major city locations generally attract lower interest rates than regional areas.

Yes, fixed rates are available for commercial property loans, typically for 1 to 5 year terms. You can generally expect fixed rates to sit about 0.30% to 0.80% above variable rates, but some clients choose them over variable because they provide certainty for budgeting. 

Yes, and it’s actually quite common in commercial lending. Interest-only periods are typically available for up to 5 years on standard owner-occupier and investment loans, and in some cases lenders will extend beyond that — particularly for investment loans where the structure supports it.

That said, while IO repayments lower your monthly outgoing during the interest-only period, they don’t reduce your principal. So when I’m working through a loan structure with a client, I always make sure we factor in the eventual switch to principal and interest repayments and assess whether that’s comfortable.

If you want to see the numbers side by side, the repayment calculator above has an interest-only toggle so you can compare both scenarios before we speak.

Yes, SMSF commercial property loans range from 6.20% – 9.90%, slightly higher than standard commercial rates due to additional compliance requirements. Maximum LVR for SMSF loans is typically 80%, with minimum deposits of 20% required.

A 30% deposit (70% LVR) considered the standard deposit amount for commercial real estate. If you have more than 30% deposit, this can be advantageous as you can access lower interest rates.  If you have less than 30% deposit, you may still be able to secure finance with specialist and regional lenders, though at a higher rate. Residential equity or security can also help you get commercial real estate lending. 

Yes, location will significantly impact your actual rates. Sydney and Melbourne based properties typically access base rates, whilst regional areas may face premiums of 0.50% to 1.50%. Brisbane, Perth, and Adelaide sit in-between, with adjustments of 0.10% to 0.45% above base rates.

Absolutely. That’s one of the key benefits of using us to broker your commercial loan. Unlike residential loans, commercial interest rates are more negotiable. We leverage competition between our 60+ panel lenders to negotiate better rates. Factors like loan size, relationship banking, and multiple securities can potentially unlock rate discount of 0.30% to 0.80%.

Consider refinancing a commercial property when rates drop 0.50% or more below your current rate, your financial position improves significantly, your LVR drops below key thresholds (80%, 70%, 60%), or your fixed rate period ends. We provide free refinancing assessments to calculate potential savings.