Owning your business premises is one of the most powerful financial decisions a business owner can make — building equity instead of paying rent, securing your operating base and creating a long-term asset. Commercial property loans in Australia cover a wide range of property types and are available to both owner-occupiers and investors through a growing panel of bank and non-bank lenders.
What Is a Commercial Property Loan?
A commercial property loan is a mortgage secured against a commercial or industrial property. Unlike residential mortgages, commercial loans are assessed on the income-generating potential of the property, the borrower's business financial position, and the loan-to-value ratio (LVR). Commercial property loans in Australia are available for owner-occupied premises, investment properties and development sites.
What Types of Commercial Property Can Be Financed?
Overdrive Funding arranges finance for a wide range of commercial property types including: commercial offices and office buildings, retail shops and shopfronts, industrial units and warehouses, showrooms, childcare centres, medical suites, boarding houses, factories, and commercial investment properties. Most property types accepted by mainstream lenders can be financed through our panel.
How Much Can I Borrow?
Commercial property loans are typically available up to 70–80% of the property's value (LVR). For owner-occupied premises, some lenders will go to 80% LVR. For investment or development properties, 60–70% LVR is more common. Loan amounts range from $200,000 to $50 million and above through our specialist panel.
What Are Commercial Property Loan Rates?
Commercial property loan rates in Australia range from approximately 6.5% to 9.5% per annum depending on the lender, property type, LVR and borrower profile. Non-bank lenders are often more flexible on property type and borrower structure, but may price slightly higher than major banks. Overdrive Funding compares options across the full market — bank and non-bank — to identify the best rate for each client.
What Are Commercial Property Loan Terms?
Commercial property loans are typically structured with interest-only periods of 1–3 years followed by principal and interest repayments, with overall loan terms of 15–30 years. Some non-bank lenders offer shorter term bridging facilities for development or transitional situations. Our brokers structure the loan term to match your investment or business strategy.
What Do I Need to Apply?
For a commercial property loan you'll typically need: the property contract of sale or details of the property being financed, 2 years of personal or business tax returns, business bank statements, a property rental schedule (for investment properties) and personal ID. For purchases, we can arrange pre-approval before you sign the contract so you know your maximum borrowing capacity.
Low Doc Commercial Property Loans
Low doc commercial property loans are available for self-employed borrowers and business owners who cannot provide full financials. These products are assessed on property value and a declaration of income rather than tax returns. LVR limits are typically lower — around 60–65% — but they provide a pathway to commercial property ownership for business owners with non-standard income structures.