Commercial Property Loans
Commercial property loans work differently to the home loan you might already know. The deposits are bigger, the terms are shorter, and lenders look at things a residential lender never would. Whether you’re buying an office, warehouse, retail space or investment property, getting the structure right early on saves you money and stress later. That’s what we help with.
Buy, build or invest in commercial property with the right loan behind you
Commercial property loans work differently to the home loan you might already know. The deposits are bigger, the terms are shorter, and lenders look at things a residential lender never would. Whether you’re buying an office, warehouse, retail space or investment property, getting the structure right early on saves you money and stress later. That’s what we help with.
Why work with us:
- 40+ lender comparison, including commercial and specialist lenders
- Structuring for both owner-occupiers and property investors
- A team that explains every step in plain English
Get the most competitive rate from 40+ Lenders
Let us do the hard work for you. Access to Australia’s top lenders means we can find and compare the best deals for your business and personal financial needs.
How Much of a Deposit Do You Need?
Deposit requirements for Australian commercial property loans depend heavily on the type of property. Lenders see some assets as safer than others, and that shapes how much they’ll lend against the value, known as the Loan to Value Ratio, or LVR. A higher LVR means a smaller deposit.
The figures below are indicative only. Your actual position depends on the lender, the property and your financials, so we’ll check everything against our lender panel before you commit.
| Property Type | Typical LVR | Indicative Deposit |
|---|---|---|
| Office | Up to 70–75% | 25–30% |
| Retail | Up to 70% | 30% |
| Industrial / warehouse | Up to 70–75% | 25–30% |
| Medical / childcare | Up to 80% | 20% |
| Specialised (e.g. hospitality, service stations) | 50–60% | 40–50% |
One thing worth knowing early: investors usually need 5–10% more deposit than owner-occupiers for the same property. Planning to buy commercial investment property loans against a standard commercial space? Budget for a slightly larger deposit than an owner-occupier would.
It’s also smart to factor in the extras. A stamp duty calculator helps you work out the government charges on top of your deposit, so there are no surprises at settlement.
What our clients say
Why Commercial Property Loans Differ From a Home Loan
If your only borrowing experience is a mortgage, commercial finance can feel like unfamiliar territory. Here’s what changes.
- Shorter loan terms: Where a home loan might run 30 years, commercial property loans in Australia usually sit between 5 and 15 years. That means higher repayments, but a faster path to owning the asset outright.
- Higher rates: Commercial lending carries more risk for the lender, so rates tend to be higher than residential. We won’t quote a number here, as rates move constantly and depend on your deal, but we’ll show you real, current options across our panel.
- Annual reviews: Many commercial loans are reviewed each year. The lender reviews the property, the tenant and your business performance, then can adjust the terms. It’s normal, but it’s something a home loan never puts you through.
- Different consumer protections: Most commercial lending sits outside the National Consumer Credit Protection (NCCP) Act. The rules that protect residential borrowers don’t automatically apply, which makes having someone in your corner more valuable.
Why Use an Inovayt Commercial Broker?
Only around 40–45% of commercial deals go through a broker, compared to roughly 80% of home loans. So while nearly everyone uses a broker for their mortgage, most commercial borrowers still walk into a single bank and take whatever’s offered.
That’s a missed opportunity, as commercial lending isn’t standardised the way home loans are. Two lenders can look at the same deal and offer wildly different terms. A good commercial finance broker knows which lenders favour which property types, how to present your application and where the flexibility sits.
We do that legwork for you. You get access to lenders you couldn’t approach directly, and a structure built around your goals, not the bank’s.
What Stops an Australian Commercial Property Loan From Going Through
Plenty of commercial deals fall over late in the process, often for reasons the borrower never saw coming. Knowing the common traps early helps you avoid them.
- Zoning: If the property’s zoning doesn’t match its use, lenders get nervous. It’s worth confirming before you sign anything.
- Short lease expiry: A tenant whose lease ends soon weakens the deal. Lenders look at the Weighted Average Lease Expiry (WALE), which is essentially how long, on average, your tenants are locked in. A short WALE can shrink how much they’ll lend.
- Valuation under the contract price: If the lender’s valuation comes in below what you agreed to pay, you may need to cover the gap in cash.
- Single-tenant risk: One tenant means one point of failure. If they leave, your income stops, and lenders price that risk in.
We flag these issues before you’re committed, so you’re not scrambling at the eleventh hour. The same care applies whether you’re financing property, equipment finance for your operations or a construction home loan for a build.
Ready to Finance your Commercial Property?
You don’t have to work out commercial property loans on your own, or settle for the first offer a single bank puts in front of you. We’ll compare your options across 40+ lenders, structure the loan around your goals and guide you from application to settlement.
Contact us to talk through your commercial property plans.
Helpful resources
Business Finance Guide
Our business finance guide unpacks everything you need to know about financing your business.
Commercial Property Loans – FAQs
It usually starts around 20–30% for owner-occupiers, depending on the property type. Specialised properties can require far more. These figures are indicative, so we’ll confirm your position against our lender panel.
Sometimes, particularly for lower-risk property types like medical or childcare. For many standard commercial purchases, lenders want more. It depends on the property, the lender and your finances.
Commercial lending carries more risk, so lenders lend a smaller portion of the property’s value. That means a larger deposit from you compared to a residential mortgage.
Yes, significantly. Office and industrial spaces tend to attract higher LVRs than specialised properties like service stations or pubs, which lenders view as harder to resell.
Commercial property loan approvals in Australia generally take longer than home loans because there’s more to assess. Timeframes vary by lender and deal complexity, so we’ll give you a realistic estimate upfront.
A commercial property loan is secured against the property itself. A general business loan may be unsecured or secured against other assets. Property security usually means better terms.
Yes, in many cases self-managed super funds can hold commercial property, though the rules are strict. It’s worth chatting through properly. Talk to our team about your situation.
Find an Inovayt Commercial broker near you
Our team of experienced commerical brokers help you discover the right financial solutions for you and your business, so you can put your business in the best possible situation to grow, while having piece of mind.
Our team of experienced commerical brokers help you discover the right financial solutions for you and your business, so you can put your business in the best possible situation to grow, while having piece of mind.
Our team of experienced commerical brokers help you discover the right financial solutions for you and your business, so you can put your business in the best possible situation to grow, while having piece of mind.
Our team of experienced commerical brokers help you discover the right financial solutions for you and your business, so you can put your business in the best possible situation to grow, while having piece of mind.
Why Choose Inovayt
Simple
We understand that managing and reaching your financial goals is an ongoing process. Our experienced team can help you with all types of financial solutions with little stress.
Flexible
We understand that everyone has different needs, schedules and availability. We’re happy to meet face to face, over the phone or online at a time that suits you.
Solutions-driven
Our end-to-end financial solutions can support you throughout any stage of your life journey. It’s never too early to start planning for a comfortable retirement.
