Commercial Property Purchase Loans from $500k to $100m+

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.

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.

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.

• 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

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 

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.

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.