Commercial Property Loans: Compare 50+ Australian Lenders

Commercial property loans cover a wide range of asset types, and the property type has a direct effect on the LVR and pricing a lender will offer. Lenders generally view well-located offices and industrial assets as lower risk than specialised retail or mixed-use property.

Deposit requirements are one of the biggest differences between commercial and residential lending. Standard LVRs of 65% to 80% mean you generally need a 20% to 35% deposit, though the exact figure depends on the property type and whether you're an owner-occupier or investor.

As an example, a $1,000,000 property with a 30% deposit requires around $360,000 in available funds once purchase costs are included. In Queensland, stamp duty on a $1,000,000 commercial property adds roughly $38,000 on top of the deposit itself, so it's worth budgeting for total funds needed, not just the deposit percentage.

Using equity in an existing property through cross-collateralisation can reduce the cash deposit required, since the lender takes security over more than one asset. For a full breakdown of deposit requirements by scenario, read our guide to commercial property loan deposits.

Commercial property loan rates are risk-based and vary by lender, so there's no single advertised rate that applies across the board. Instead, a range of factors combine to determine the pricing you're offered, which is why comparing across a panel of lenders matters more than chasing a single headline figure.

A property generating $80,000 in net rent, for example, typically supports annual repayments of $53,000 to $64,000, which lenders use to assess serviceability alongside your other income and debts. For a full breakdown of what drives pricing and how to get a sharper rate, read our guide to commercial property loan interest rates in Australia.

Whether you're buying to run your own business from the property or to lease it out to a tenant changes how a lender assesses your application. Owner-occupier loans are generally priced more sharply because the lender can rely on your business income directly, while investor loans lean more heavily on the property's rental income.

A full doc commercial loan requires complete financials, including tax returns, business financial statements and a property valuation. Because the lender has a clear picture of your financial position, full doc loans generally access the lowest rates and the highest LVRs on a lender's panel.

A low doc commercial loan suits self-employed borrowers or businesses that can't provide full financials, using alternative evidence such as bank statements or an accountant's declaration instead. Low doc loans typically require a 35% to 40% deposit, higher than full doc lending, and carry a rate premium to offset the reduced verification. Approval can still be relatively fast, but the trade-off is a smaller loan for the same property value.

Getting approved for a commercial property loan starts with an accurate picture of your deposit, the property's income potential and your business financials. Approval rates and timeframes vary significantly depending on the type of lender you approach.

Banks are more selective on smaller deals, approving only around 25% to 35% of applications under $1,000,000, and applications typically take 2 to 6 weeks to settle once submitted. Non-bank lenders often move faster, settling in 3 to 10 business days, which can matter if you're working to a tight settlement date. One detail that catches borrowers out is a lease expiring within 12 months of settlement, which can reduce your LVR or lead to a decline if the lender can't be confident the income will continue. Read our full guide on how to get a commercial property loan in Australia for a step-by-step breakdown.

Commercial property loans are large, long-term commitments, so structuring the deal well can save a significant amount over the life of the loan. Comparing multiple lenders rather than relying on your existing bank is the single biggest lever, since pricing and LVR policies vary widely across a panel of 50+ lenders.

If you own equity in another property, cross-collateralisation can reduce the cash deposit you need to find, though it does tie the two assets together as security. Weigh up fixed versus variable pricing based on how long you plan to hold the property, and check whether an interest-only period suits your cash flow during the early years.

Always compare the comparison rate rather than the headline rate, and factor in application, valuation and ongoing fees, since these can meaningfully change the true cost of a facility that runs for 15 or 20 years.