Commercial Property Refinancing
Commercial property refinancing can save you tens of thousands annually — or unlock equity. We help property owners secure better rates, improve cash flow, and restructure existing loans from 60+ lenders, with options up to 80% LVR and rates from 6.25% p.a.
Commercial property refinancing at a glance
Commercial property refinancing means replacing your existing loan with a new one, either with a new lender or by restructuring with your current one. The goal is a sharper rate, releasing equity, or changing how the loan is structured. Rates start from p.a., across our panel of 60+ commercial lenders.
The right move isn't always to make a switch. We often help our clients negotiate better rates and terms with their current lender.
- Interest rates 6.25% - 10.20% p.a.
- Loan terms Up to 30 years
- Break costs We negotiate waivers
- Max LVR Up to 80%
- Cash-out Release built-up equity
- Loan range $500k to $100m plus
- Top factor Rate gap & equity
- No deposit needed You already own it
- Settlement Typically 4 to 6 weeks
All information is general guidance only. Your actual rates and terms may differ from those on our commercial property loan interest rates page. Not financial advice. Please read our important disclaimer.
The five reasons businesses refinance commercial property
Refinancing isn't one decision, it's five different ones, and the right structure depends on which of these you're solving for. Most clients come to us for a sharper rate, but the bigger wins often sit in the other four. We work out which driver matters most to you before we approach a single lender.
Rate reduction
The reason most people pick up the phone. If your current rate sits above what the market is offering, moving to a sharper rate cuts your repayments and frees up cash flow every month, and on a commercial loan the saving compounds fast. We compare your current rate against our full panel so you can see the gap clearly before deciding.
Equity release / cash-out
If your property has grown in value, refinancing can unlock that equity as usable capital, for expansion, renovations, or buying the next property, without selling.
Best for: properties that have risen in value
Term restructure
Changing the loan's structure rather than just its rate, extending the term, or switching to interest-only, to lower repayments and improve cash flow when your circumstances have shifted.
Best for: cash flow relief or changed plans
Debt consolidation
Combining multiple commercial loans across different lenders into a single facility. One repayment, one lender, often a better blended rate, and far less to manage.
Best for: multiple loans across lenders
Covenant relief / lender change
Moving away from a lender whose terms no longer fit, restrictive covenants, inflexible reviews, or an appetite that has changed, to one that suits how your business runs now.
Best for: restrictive or ill-fitting terms
Commercial refinancing rates by loan type
When you refinance, your rate is set by the same thing that set it the first time, what the loan is for and how it's assessed. Owner-occupiers sit at the sharp end, investment and SMSF loans price a notch higher, and low-doc fills the gap when full financials aren't on hand. Refinancing rates currently range 6.25% - 10.20% p.a. across our panel.
| Loan type | Rate positioning | Typical max LVR | Best suited to |
|---|---|---|---|
| Owner-occupier | Sharpest, lenders favour owners in their own premises | Highest of the four types | Businesses refinancing the premises they trade from |
| Investment | Competitive, rental income supports serviceability | Strong, a notch below owner-occupier | Investors refinancing tenanted commercial assets |
| SMSF | Higher, reflecting the specialist loan structure | Moderate, set by limited-recourse rules | Self-managed super funds refinancing commercial property |
| Low-doc | Highest, priced for reduced documentation | Lower, assessed case by case | Self-employed borrowers without full financials to hand |
Rate positioning and LVR are relative guides, not quotes. Your actual terms depend on the property, your equity, your serviceability and the lender. See our commercial property loan interest rates page, or talk to us for an indicative read on your refinance.
Over 60 business lenders. One specialist broker.
Our lending panel includes major banks, regional banks, specialist non-bank lenders, and private credit providers, including lenders who only deal through accredited brokers directly.
What lenders look for when you refinance
Refinancing is assessed on where you are now, not where you started. Because you already own the property, there's no deposit, the lender looks at your current equity, whether the new loan services, and what's holding you to your existing lender. Five factors drive most decisions, and the quick check gives an indicative read on where you sit.
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01
Your equity position The gap between your property's current value and your loan balance is the single biggest factor. More equity means a lower LVR on the new loan, sharper pricing, and more room for cash-out. If your property has grown in value since you bought it, that works in your favour.
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02
Serviceability on the new loan The lender needs to see the new repayments are comfortably covered, whether by business income, rental income, or both. For investment property, rental income carries most of the load. If your income has grown since the original loan, you may qualify to borrow more than you did first time.
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03
Your current loan status Whether you're on a fixed or variable rate matters. A variable loan is usually clean to exit, a fixed loan can carry break costs that need weighing against the saving. We factor your exit position in before recommending a move, and often negotiate those costs down.
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04
Your reason for refinancing Lenders price differently depending on whether you're after a lower rate, cash-out, or a restructure. A straight rate move is the simplest. Cash-out above a certain LVR, or a switch to interest-only, brings extra checks. Knowing your goal up front lets us match you to the right lender first time.
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05
Property type and tenancy Whether the property is owner-occupied, tenanted, or held in an SMSF shapes the lender pool and the LVR. A property with a strong lease in place is straightforward, specialised or vacant property narrows the field to specialist and non-bank lenders.
Quick refinance check
Five questions, takes about 30 seconds
How much equity do you have in the property?
Roughly, the gap between what the property is worth now and what you still owe. More equity means sharper pricing and room for cash-out.
How does the property earn or support the loan?
Lenders need to see the new repayments are comfortably covered by income.
What's your current loan rate type?
A variable loan is usually clean to exit, a fixed loan can carry break costs we'd weigh against the saving.
What are you mainly trying to achieve?
Your goal shapes which lenders we approach and how the new loan is structured.
How long do you plan to hold the property?
Refinancing costs need time to pay back. A longer hold makes the numbers work harder for you.
Refinance assessment
Analysing your refinance eligibility...
Commercial refinancing options by lender type
Where you refinance to matters as much as why. The Big 4 lead on rate for clean, well-secured deals, regional and non-bank lenders flex on serviceability and cash-out, and specialist and private lenders take on the situations the banks won't. The right fit depends on your equity, your reason for refinancing and how quickly you need it done.
| Feature | Big 4 banks | Regional and non-bank lenders | Specialist and private capital |
|---|---|---|---|
| Rate on a clean refinance | Sharpest | Competitive | Higher, priced for flexibility |
| Maximum LVR | Conservative | Moderate to high | Highest available |
| Cash-out appetite | Cautious, purpose evidence needed | More accommodating | Most flexible |
| Serviceability approach | Strictest, full financials | Considers low-doc and lease income | Asset and equity led |
| Approval speed | Slowest | Moderate | Fastest |
| Handling of complex situations | Limited, clean deals only | Considers past credit issues | Built for complex and urgent cases |
| Best suited for | Strong borrowers refinancing well-secured property for the sharpest rate | Cash-out, low-doc and serviceability cases needing room to move | Complex, urgent or credit-impaired refinances the banks decline |
Commercial refinancing fees and costs
Refinancing carries the usual setup and valuation costs, plus one that decides whether the move is worth it at all: the break cost on your existing loan. The whole point is to come out ahead, so the real question is how long these costs take to recover against your saving. The list below is what most refinancing quotes look like once fully costed.
| Cost | How it is charged | What it covers |
|---|---|---|
| Break costs The cost that decides whether to switch | Only on fixed loans, varies | If you're on a fixed rate, leaving early can trigger a break cost that reflects the lender's loss on the remaining fixed term. On a variable loan there's usually none. This is the single figure that most often makes or breaks a refinance, which is why we model it against your saving before recommending a move, and frequently negotiate it down or waived. |
| Discharge fee Charged by your current lender | Fixed fee, per loan | Your existing lender's charge to release the mortgage and close out the loan. A relatively small, fixed administrative cost that applies on almost every refinance. |
| Establishment fee A percentage of the new loan | Percentage of loan, upfront | The new lender's setup and documentation cost, charged as a percentage of the new loan and often capitalised into the facility rather than paid in cash. Frequently negotiable as part of the deal. |
| Valuation Charged per valuation | Per valuation | The new lender's independent valuation of your property. This sets your current LVR, which drives both your rate and how much equity you can release, so a strong valuation works in your favour. |
| Legal and documentation Charged per matter | Per matter | Preparation of the new loan and security documents, and registration of the new mortgage against your title once the old one is discharged. Covers the lender's legal review on the new facility. |
Nadine Connell
Commercial Finance Broker
See what you could save by refinancing
Enter your current loan and the rate you could refinance to, and we'll estimate your monthly saving, how long it takes to recover the switching costs, and the total interest saved over the loan. Final terms depend on full lender assessment. Call 1300 262 098 for a free assessment.
Indicative estimate only, not a loan offer or financial advice. Results may be inaccurate. Payments are calculated on a principal and interest basis. Any cash-out is added to the new loan balance. Your real terms depend on full lender assessment. For more tools, visit our commercial property resource centre.
When refinancing doesn't make sense
We model the total cost of switching before we recommend anything. More than once we've told a client to stay where they are, or to renegotiate with their existing lender rather than move. It costs us a deal in the short term, but it's the honest call, and it's why those clients come back when refinancing genuinely does stack up.
These are the situations where we'd usually recommend waiting rather than refinancing:
- Your break costs outweigh the savings. If the exit fees take too long to recover, you're often better off negotiating a rate reduction with your current lender instead, something we can help with too.
- You're selling within 12 months. The upfront costs and effort won't deliver enough return in that timeframe. At 18 months or more, refinancing can still make sense.
- Your financial position has weakened. If your revenue has dropped or your LVR has worsened since the original loan, a new lender may offer worse terms than you have now. Reviewing again in six to twelve months is often smarter.
- The rate gap is too small. A slight move in rates rarely covers the cost of switching. We recommend it when the gap is meaningful, or there's a clear structural benefit like accessing equity or removing restrictive covenants.
- You're still in a fixed-rate period. Early termination costs can be substantial. It's usually better to wait until the fixed term ends, unless the savings clearly outweigh the break penalty.
The most common refinancing mistake we see is property owners only comparing rates. They miss the bigger picture, break cost waivers, offset accounts and covenant flexibility can be worth far more than a small rate difference. That's why we model the total cost of each option, not just the headline rate.
Ready to discuss your commercial property finance options?
Book a free consultation today. I'll work through your specific deal, talk you through your lender options, and help you all the way from application to settlement. No obligation. No upfront fees.
- 1 Consultation. We review your deal, the property and your numbers.
- 2 Market approach. We approach the lenders most likely to write your deal.
- 3 Your options. You compare offers, choose, and we manage through to settlement.
Commercial property refinancing questions, answered
The questions Australian property owners most often ask me before they refinance a commercial loan.
Cost, timing and whether it's worth it
How much does it cost to refinance a commercial property loan?
Refinancing carries a handful of costs, and the one that matters most depends on whether your current loan is fixed or variable. The usual costs are an establishment fee on the new loan, a valuation, legal and documentation, and a discharge fee from your current lender. If you're on a fixed rate, a break cost can sit on top, and that's usually the largest single figure.
I don't treat these as fixed. I frequently negotiate the establishment fee and break costs down, or get them waived, as part of placing the deal. The real test isn't the total cost, it's how quickly your monthly saving recovers it. I model that break-even before recommending you move, the same way the fees table higher up this page lays each cost out.
When is the best time to refinance a commercial property loan?
In my experience, refinancing pays off when one or more of these apply:
- Your current rate sits meaningfully above what the market offers, check our commercial property loan interest rates page for where pricing sits today
- Your property has grown in value and you want to release equity
- A balloon payment or fixed term is approaching and you want to get ahead of it
- You're juggling multiple loans and want to consolidate them
- Your current structure no longer fits how the business runs
On a large commercial loan, even a modest rate improvement compounds into real money over the term. Since I assess your position at no cost, the sooner you have it reviewed, the sooner you know whether it's worth acting on.
How long does commercial property refinancing take in Australia?
Most refinances run four to six weeks from first assessment to settlement. It usually breaks down like this:
- Assessment and lender comparison: the first 48 hours
- Valuation and formal approval: 10 to 15 business days
- Documentation and settlement: a further 5 to 7 days
A refinance is generally quicker than a purchase, because there's no contract to negotiate and no building inspection. Having your last two years of financials and your current loan statements ready from day one is the single biggest thing that shortens it. I handle the lender communication and paperwork throughout.
Equity, cash-out and loan structure
Can I refinance my commercial property to access equity?
Yes. A cash-out refinance lets you release the equity your property has built as your loan balance has fallen and its value has risen. If the property is worth more than when you bought it, you can turn that growth into usable capital, while often improving your rate at the same time.
Owners commonly use released equity to fund renovations, expand the business, or buy the next commercial investment property. It needs a fresh valuation to confirm current market value, and the amount you can release depends on your LVR after the cash-out. If you're releasing equity to fund business operations rather than property, a business loan or line of credit can sometimes be the cleaner structure, which I'll flag if it fits you better.
Do I need a deposit to refinance commercial property?
No. You already own the property, so there's no deposit to find. Instead, the lender assesses the property's current value and your ability to service the new loan.
The one nuance is cash-out: if you're releasing equity and pushing your LVR higher, some lenders want stronger evidence that you can service the larger balance. That's a serviceability question, not a deposit one, and it's usually straightforward to demonstrate where the property income or business income supports it.
Can I switch from principal and interest to interest-only when I refinance?
Yes, and it's one of the more common reasons owners refinance. Moving to interest-only repayments reduces your monthly outgoing and frees up cash flow, which can matter during a growth phase or a tighter stretch. Most lenders on our panel offer interest-only periods of one to five years on a commercial refinance.
It suits investment property in particular, where the interest is typically deductible. Worth keeping in view: interest-only lowers the monthly cost but you're not reducing the principal during that window, so I'll always show you the full-term picture, not just the lower repayment, before you decide.
Eligibility and special situations
Can I refinance a commercial property loan with bad credit?
Often, yes. The major banks lean heavily on credit history, but specialist and non-bank lenders weigh the property's value and income more than the credit score alone. So a past credit issue doesn't automatically rule out a refinance.
Rates from these lenders usually sit higher than mainstream pricing, but a refinance can still improve on your current position, and moving to a specialist lender now can help you rebuild toward sharper rates later. I'll tell you honestly whether the numbers work, rather than move you for the sake of it.
Will my tenants be affected when I refinance?
No. Refinancing changes your loan, not the ownership or management of the property. Your existing lease agreements stay exactly as they are, and rent continues to be paid to you as normal. The whole process happens between you, me and the lenders, your tenants won't know it's taken place.
Can I refinance an SMSF commercial property loan?
Yes, and it's increasingly common as fund balances grow and lender appetite in the SMSF space shifts. An SMSF commercial property loan refinance has to stay within the limited-recourse borrowing rules, so the structure is more specialised and the lender pool is narrower than a standard refinance.
The usual drivers still apply, a sharper rate or a better-fitting structure, but the compliance side matters more here, so it's worth getting it assessed properly rather than assuming the standard path applies.
What documents do I need to refinance a commercial loan?
For most refinances, lenders want to see:
- Your last two years of business financials and tax returns
- Six months of statements on your current loan
- Any current lease agreements, if the property is tenanted
- Your company or trust structure documents
- Bank statements showing rental or business income
Don't let a missing piece stop you starting. I prepare the documentation with you and can often get an application moving while we fill the gaps, so if you have most of the above, that's enough to begin.
How do I find out if refinancing is right for me?
The quick check and the calculator higher up this page give you a fast read in under a minute, your likely position, your monthly saving and the break-even. They're the best starting point.
For a read on your actual loan, call me on [sbp_phone] or book a free assessment. As commercial loan brokers, we've arranged over $550 million in commercial finance for 3,300+ Australian businesses, so I can usually tell you quickly whether a switch stacks up or whether you're better off where you are. If you're weighing the tax side of releasing equity, the ATO guidance on interest deductibility is worth reading first.
More commercial property finance options & tools
Commercial property refinance is the process of moving an existing commercial loan to a new lender or restructuring with the existing lender to achieve better terms. Common drivers include rate improvement, LVR release, term restructure, or covenant relief. Below are related loan structures and the next set of decisions refinance borrowers face.
Related loan structures
Refinance sits alongside other loan structures most commercial borrowers cycle through across their property ownership.
More to consider
The next set of decisions refinance borrowers face — the property types most commonly refinanced, the dominant market, and the tools to model refinance versus existing terms.
Have a question? Just ask
Book a free, no obligation chat with our commmercial lending experts, or call 1300 262 098 to speak to our team.
