Get Retail Property Loans from 6.20% and 55% - 70% LVR

The typical LVR range for a retail property loan is 55% – 70%, though some properties can attract higher LVRs if you have very strong tenant covenants like national retailers, or essential services (especially government). Your exact LVR will depend on factors like the property location (metro vs regional), tenant quality, lease terms remaining, and your business’s financial position. Retail properties with multiple tenants, or those in prime retail locations, can attract higher LVRs.

We can potential secure LVR’s of 80% for clients where they have quality retail assets and stable income streams. Speak to our team who have a ton of experience with retail property loans for an exact personalised quote. 

A part of the value a commercial finance broker brings is understanding the local lending market, and which lenders are focused on what property types and locations. Currently only around 25% of Australia’s commercial lenders are open to or actively seek retail property deals.

The reality is that the Big 4 banks (CBA, Westpac etc) remain selective in the retail space, focusing on prime locations with national tenants. That’s where regional banks like Bank of Queensland and Bendigo Bank show more flexibility for local retail. Non-bank lenders including Thinktank, Pepper Money, and Scottish Pacific can also offer competitive rates for retail properties that the banks won’t touch.

Specialist retail property lenders understand tenant mix, foot traffic patterns, and retail sector dynamics better than generalist lenders. Our team can quickly connect you with the best lending options, saving you time, money and hassles. 

Yes, we have shopping centre finance available for properties from neighbourhood strips to regional centres.

Lenders will assess the tenant mix diversity, the strength of your anchor tenant, occupancy rates, and catchment demographics (we can help with this if needed). Neighbourhood centres under $5M typically need at least a 70% LVR, while larger complexes are assessed on a case by case basis. 

Mixed-use retail with residential or office components can often attract more favourable terms as lenders deem them less risky. The current market conditions favour established centres with essential services like supermarkets, medical, and childcare tenants, and especially government tenants which are consider recession proof.

Retail property finance interest rates are 6.20% – 8.50%, but your exact rate will depend on the lender, your finances, and property quality. Big 4 bank rates for prime retail typically offer the best rates for loans under 70% LVR (banks are very selective in the retail space in Australia).

Non-bank lenders typically charge higher rates, but offer more flexible criteria. Regional retail or properties with vacancy issues will usually attract the highest rate ranges which is due to perceived retail sector risks. 

Lenders evaluate retail property loans using specialised criteria which included things like tenant covenant strength, weighted average lease expiry (WALE), location foot traffic, competition analysis, and online shopping impact. Our bank loan business plans for retail premise acquisition can cover all this for our as part of our application management service.

Lenders mostly want to see a minimum 3-year WALE, less than 20% vacancy, and evidence of sustainable rental yields above 6%. Your business needs to demonstrate 1.25x debt service coverage ratio (which we can do as part of our cash flow forecasting service).

Having an experienced retail property broker who understands which lenders suit your specific retail type – whether convenience, comparison, or bulky goods – significantly improves your approval chances.

Yes, retail property finance typically faces stricter lending criteria than industrial or office properties. That’s why engaging a specialist commercial property finance broker can increase your chances of success. Only 25% of commercial lenders are actively pursuing retail deals, significantly less than other commercial property types such as industrial properties.

Lenders are currently concerned about the continued impact of e-commerce, as well as changing consumer habits and tenant stability. However, what would be deemed ‘essential retail’ (things like supermarkets, pharmacies, medical, government services etc), convenience retail if it’s near to transport hubs, and experiential retail (gyms, restaurants etc) still remain strong for attracting commercial loans. The key is matching your retail property type with lenders who understand and actively seek that specific retail segment.