Compare Commercial Property Loan Types

We help Australian business owners and commercial property investors access the seven main types of commercial property loans. Commercial purchase loans help you buy existing properties with competitive rates. Construction finance provides progressive drawdowns for building new commercial properties. SMSF commercial property loans use limited recourse borrowing arrangements with up to 80% LVR. Development finance funds subdivision and multi-unit projects. Bridging loans offer short-term property transitions for 3-24 months. Mezzanine finance tops up funding to 90% of project costs. Commercial refinancing improves existing loan terms or accesses equity.

Each loan type serves different business objectives. Owner-occupiers typically use purchase or construction loans for their business premises. Investors often leverage SMSF or development finance structures for wealth building.

Owner-occupier commercial loans typically offer lower interest rates (0.5-1% less than investors only), as well as higher loan-to-value ratios (up to 80% LVR). Loan terms can also be longer (up to 30 years) because lenders view premises that will be occupied and used by the business owner themselves as lower risk. These loans include both commercial mortgages for purchase as well as construction finance for any custom-built facilities.

Investment commercial property loans typically focus on rental yield (which can be 6-8% for commercial properties). They usually require stronger serviceability calculations, and include specialised options like SMSF loans and mezzanine finance. Investors can also access development finance for projects and bridging loans for opportunity purchases, though these carry higher rates due to increased risk.

If you are purchasing business premises to use yourself, a commercial owner-occupier loan is typically optimal, offering rates from 6.20% p.a., terms up to 30 years, and LVR up to 80% for established businesses. This traditional commercial mortgage structure provides certainty with fixed or variable rate options.

Businesses with sufficient access to superannuation can also use SMSF commercial property loans to purchase through their fund, potentially gaining tax advantages (15% tax rate, 0% in pension phase) while paying rent to their own SMSF.  Some businesses combine both strategies, using partial SMSF funding with commercial lending to maximize tax efficiency while maintaining flexibility. Our team can help you determine which path is right for you.

The exact documentation you’ll need depends on the type of commercial loan you’re looking at. For purchase loans, you’ll and minimum need two years of business financials, ATO tax portal access, a property valuation, and your lease agreements (if relevant). Construction finance requires these plus DA approval, fixed-price building contracts, and quantity surveyor reports.

SMSF loans have specific compliance requirements – you’ll need trust deeds, LRBA documentation, actuarial certificates, and compliance declarations.

Development finance is more complex, requiring feasibility studies, pre-sales evidence (if applicable), and project management credentials.

For bridging loans, you’ll need clear exit strategies and existing property valuations.

All commercial loan types require personal financial statements, asset and liability positions, and company documentation including ABN verification and director identification. As professional commercial brokers, we know exactly what each lender needs, and will guide you through preparing your application correctly the first time, preventing costly delays from missing documents.