Commercial Property Refinancing

The typical cost of commercial loan refinancing ranges from $8,000 to $15,000. However, this varies depending on your loan size and current lender. Specifically, the main costs include establishment fees (0.5–1% of loan amount), valuation fees ($1,500–$4,000), legal fees ($1,500–$3,000), and discharge fees ($300–$800).

That said, these costs are often negotiable. In fact, we can frequently negotiate break costs down by 50–75%, or get the existing lender to waive them entirely, depending on your situation. As a result, many of our clients recover their total refinancing costs through savings within the first 3–6 months — meaning the refinance essentially pays for itself.

Yes, commercial mortgage refinancing with a cash-out option allows you to access up to 80% of your property’s current market value in most cases. In other words, if your commercial property has increased in value since you purchased it, you can unlock that growth as usable funds.

For example, you can use released equity for renovations, business expansion, purchasing additional investment properties, or working capital. Additionally, you may also secure a better interest rate at the same time. However, the process will require a new valuation to confirm the current market value of your commercial real estate before the lender approves the cash-out amount.

Generally speaking, the best time to refinance a commercial property loan is when one or more of the following apply:

• Your current commercial property loan interest rate is 0.5% or more above current market rates
• Your property has increased in value by 15%+ and you want to access equity
• You have a balloon payment approaching that you want to avoid
• You want to consolidate multiple loans to simplify management while also reducing costs
• Your business needs have changed and your current loan structure no longer fits

Furthermore, even a small rate reduction on a large commercial loan can save tens of thousands annually. Because we assess your situation at no cost, there is really no downside in talking to our team about your business property refinance options. Ultimately, the sooner you review your position, the sooner you could start saving.

Yes, investment property refinancing with credit issues is possible through some of our specialist lenders. While major banks typically require a strong credit history, we also work with non-bank and private lenders who focus more on property value and rental income rather than credit scores alone.

Of course, rates from these lenders will usually be 1–2% higher than mainstream options. Nevertheless, refinancing could still deliver meaningful savings compared to your current loan. Moreover, moving to a specialist lender can also help you rebuild your credit profile over time, which means you may qualify for better rates again in the future. In short, having imperfect credit doesn’t necessarily mean you’re stuck on a bad deal.

The typical timeframe for a commercial property remortgage is 4 to 6 weeks from initial assessment to settlement. More specifically, the process breaks down as follows:

• First, we complete your initial assessment and lender comparison within 48 hours
• Then, formal approval and valuation typically take 10–15 business days
• Finally, documentation and settlement require a further 5–7 days

Importantly, this process is usually faster than purchasing a new property because there’s no contract negotiation or building inspections required. In addition, having your documentation ready from day one can shorten the timeline further. We handle all paperwork and lender communication throughout, so you can focus on running your business.

In order to process your commercial loan refinancing application, our lenders typically require the following:

• Last 2 years’ business financials and tax returns
• 6 months of your current loan statements
• Any recent property lease agreements, if applicable
• Your company structure documents
• Bank statements showing rental income

However, don’t let paperwork hold you back. We handle all document preparation to make the process as easy as possible, and we can often help fast-track applications even with incomplete documentation. In other words, if you have most of what’s listed above, that’s enough to get started — we’ll help you fill in the gaps along the way.

Yes, and in fact this is one of the most common reasons clients choose to refinance a commercial property loan. Switching to interest-only repayments can reduce your monthly payments by 30–40% immediately, which significantly improves your cash flow for growth or during challenging periods.

Currently, most of our lenders offer 1–5 year interest-only periods on commercial refinancing. As a result, this strategy is particularly effective for investment properties where the interest is fully tax-deductible. After the interest-only period ends, you can either revert to principal and interest repayments, or alternatively, refinance again to extend the interest-only arrangement — depending on your circumstances and lender options at the time.

No, your tenants won’t be impacted at all. Essentially, a commercial mortgage refinance only changes your loan structure — not property ownership or management arrangements.

Therefore, all existing lease agreements remain completely unchanged, and rent continues to be paid to you as normal. In other words, there is no disruption to normal business operations because the entire process happens behind the scenes between you, your broker, and the lenders involved. Your tenants won’t even know it’s happening.

No, you don’t need a deposit to refinance because you already own the property. Instead, the lender assesses the current value of your commercial real estate and your ability to service the loan.

However, if you’re doing a cash-out refinance above 70% LVR, some lenders may require you to demonstrate serviceability for the higher loan amount. In that case, we can help you demonstrate this through our cash flow forecast service. Otherwise, most standard business property refinance applications up to 80% LVR require no additional capital whatsoever. Consequently, the main requirement is simply that your property value and income support the new loan structure.