A commercial property investment loan funds the purchase or refinance of commercial property held as an investment, leased to a tenant rather than occupied by your own business. Office suites, retail shops, warehouses and industrial units, and specialised assets like medical or childcare premises all sit here, and each is assessed differently by lenders.
The lease is central. Lenders look closely at the tenant, the strength of the lease and the net yield, and they often assess the loan on the income the property produces rather than your personal income, an approach known as lease-doc lending. Loan-to-value ratios are generally lower than residential, and the asset class, lease strength and your overall position all shape the terms.
At Loanworx, we arrange finance for commercial property investors buying or refinancing across all the main asset classes. As an experienced finance broker, we assess the lease and the asset the way a lender does, then match you to the lender offering the strongest terms for that property.
Buying or refinancing a commercial investment property? Call us on 1300 562 696 or get in touch and we’ll be back to you shortly.
These loans are assessed on the property’s income as much as the borrower. Here are the three things that shape them.
Office, retail, industrial and specialised property each carry different risk and demand profiles, and lenders price and cap them differently. Standard, well-located assets in strong demand attract the best terms; specialised or single-use assets are funded more conservatively.
The lease, the tenant covenant, the remaining lease term and the net yield drive the assessment. A strong tenant on a long lease in a quality asset supports a higher LVR and sharper pricing than a vacant or short-leased property.
Where the property is leased, some lenders assess the loan on the property’s net income rather than your personal financials, known as a lease-doc loan. It can simplify the application for investors whose income is complex, usually at a slightly lower LVR.
The terms on a commercial investment loan hinge on the lease and the asset more than on you. Two similar-looking properties can attract very different finance depending on the tenant, the lease term and the asset class, and applying to the wrong lender can mean a lower LVR or a knock-back.
We assess the lease, the tenant covenant and the net yield the way a lender does, identify which lenders suit the asset class, and present the deal, including a lease-doc option where it fits, so you access the strongest terms available for that property.
A commercial investment often connects to other commercial needs. Explore our other commercial services below to find the right fit for your portfolio.
SMSF Loans
Borrow inside your self-managed super fund to acquire commercial property under a limited recourse borrowing arrangement.
Vehicle and fleet finance through chattel mortgage, lease or hire purchase, structured for your cash flow and tax position.
Short-term finance to bridge the gap between buying and selling, or to cover a timing shortfall.
Funding to buy a business or practice, including goodwill where the deal and lender support it.
Funding for residential and commercial development, from small builds through to multi-stage projects.
Review and refinance existing commercial debt to sharpen the rate, release equity or restructure the facility.
Overdrafts, lines of credit and cash-flow facilities sized to your real working capital cycle.
A commercial investment loan is assessed on the property’s income and the asset itself. These are the factors that matter most.
The strength of the tenant, the remaining lease term and the lease terms are central. A strong tenant on a long lease supports a higher LVR and sharper pricing; a short lease or weaker covenant tightens the terms.
We present the lease and tenant covenant the way a lender assesses them.
Office, retail, industrial and specialised assets are each priced and capped differently. Standard, well-located assets attract the best terms, while specialised or single-use property is funded more conservatively.
We match the asset class to lenders with appetite for it.
Commercial LVRs are generally lower than residential, commonly around 65% to 75% for standard assets and lower for specialised property. Your deposit determines where you sit against that cap.
We work out the deposit and LVR that secure the best terms.
Lenders model the net rent, after outgoings, against the repayments, often targeting a debt service coverage ratio around 1.2 to 1.4 times. Lease-doc loans lean on this income rather than your personal financials.
We model the net rent against the loan so the serviceability stacks up.
The property’s quality, location and condition feed into the decision, alongside your wider financial position and any existing portfolio. Standard assets in established areas attract the strongest terms, while specialised or secondary assets narrow the lender panel. We flag anything about the property that may affect the finance before you commit.
Commercial finance isn’t only about the headline rate. It’s about being matched to a lender that will approve you, structuring the facility so it suits the business long term, and having someone manage the process. Here’s what working with us looks like.
We compare commercial facilities across a broad panel of major banks, second-tier lenders, non-bank funders and specialist commercial lenders, so you see a genuine spread of options. We match the deal to the lender most likely to approve it at a competitive rate, which often isn’t your everyday bank.
You deal with experienced brokers who expect to see trusts, companies, partnerships, partner distributions and complex security, and who know how to present your structure to a lender accurately rather than force-fitting it into a generic application.
From the first conversation to settlement, we prepare the submission, liaise with the lender, coordinate with your accountant and solicitor, and keep you updated at each stage, so the deal keeps moving and you’re never chasing it.
For most commercial transactions, Loanworx is paid an upfront and trail commission by the lender after settlement, and that commission typically does not change the rate or fees you pay. For more complex scenarios a fee for service may apply, and we’ll disclose it in writing before any work begins. No surprises.
Most commercial investment property, including office suites and floors, retail shops, warehouses and industrial units, and specialised assets like medical, childcare or hospitality premises. Each asset class is assessed and priced differently, with standard, well-located property attracting the best terms and specialised or single-use assets funded more conservatively. We match the asset class to lenders with appetite for it.
Commercial loan-to-value ratios are generally lower than residential, commonly around 65% to 75% for standard, well-leased assets, and lower for specialised property. The lease strength, the tenant, the asset class and your overall position all feed in. We’ll give you a realistic figure for the specific property rather than a generic number.
A lease-doc loan assesses the loan primarily on the property’s net rental income rather than your personal financials, using the lease as the basis for serviceability. It can simplify the application for investors whose personal income is complex, and it suits well-leased properties with a strong tenant. The trade-off is usually a slightly lower LVR. We can tell you whether a lease-doc structure suits your purchase.
Lenders model the net rent, the rent after recoverable and non-recoverable outgoings, against the loan repayments, often looking for a debt service coverage ratio of around 1.2 to 1.4 times. The strength and length of the lease and the quality of the tenant all affect how the income is viewed. We present the net rent and lease the way a lender assesses them.
Often, yes, though specialised assets such as medical suites, childcare centres, hospitality venues and single-use buildings are funded more conservatively, with lower LVRs and a narrower lender panel, because they’re harder to re-let or sell. The strength of the lease and operator matters even more for these. We match specialised assets to lenders who understand them.
Often, yes. Interest-only terms are common on commercial investment loans and can support cash flow, particularly while you hold the asset for income and growth. The available interest-only period varies by lender and deal, and principal-and-interest applies after. We compare the options so the repayment structure suits your investment strategy.
Talk through your scenario with a specialist commercial broker, with no cost and no obligation. Call us on 1300 562 696 or get in touch and we’ll be back to you shortly, ready to map out what’s possible for your business.
Disclaimer: The information provided here is general in nature and should not be considered financial, tax or legal advice. You should consult your professional advisers, such as your accountant, solicitor and financial planner, to see whether a particular finance strategy is suitable for your business, ahead of a discussion with us that will be limited to how to arrange any funding required.
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