A commercial property loan finances offices, retail, warehouses, medical suites and mixed-use buildings, whether you will occupy them or lease them out. Lenders typically require 25–35% deposit, price by risk rather than a single advertised rate, and assess the deal on the property's lease income, your business financials or both. Terms run 15–25 years (interest-only common), and a broker's role is to match the security, lease and borrower profile to the lender most comfortable with that combination.
This page is for people researching commercial property loans and related options such as commercial property finance, commercial mortgage, business premises loan. It explains how this type of finance generally works, who it may suit, the issues that can affect lender approval, common scenarios and the steps involved from initial review through to settlement or funding.
Every application is assessed on its own facts. Property or asset value, income, expenses, existing debts, credit conduct, entity structure and lender policy can all change the outcome. The information below is general and is designed to help you ask better questions before choosing a lender or loan structure.
A commercial property loan can be assessed using the strength of the business, the lease income, the property itself or a combination of these factors. Lenders can have very different appetites for offices, warehouses, retail, industrial, medical and specialised property. Deposit requirements, loan terms and pricing therefore vary more widely than standard home loans.
A business buying its own premises may rely primarily on trading cash flow to service the debt, while an investor may rely more heavily on lease income and tenant quality. For leased assets, the remaining lease term, rent, tenant covenant and property marketability can influence the lender’s view.
Commercial property may be purchased personally, through a company, trust or, where appropriate, an SMSF. The legal and tax implications of ownership should be determined with the relevant advisers before finance documents are prepared, because changing the purchasing entity late can delay or invalidate an approval.
Broker's Guide
What you need to qualify, what to have ready, where lender policies genuinely differ, and the mistakes we see most often. General information — every application is assessed on its own facts.
Scenario 1
Situation: Allied health practice paying $58k/yr rent; suitable suite for sale at $780k.
How we'd approach it: 70% LVR loan, repayments similar to current rent, purchase in a trust with the business as tenant; SMSF alternative also modelled.
Scenario 2
Situation: Strip shop with a 5-year lease to a national tenant.
How we'd approach it: Lease-doc lender at 65% LVR assessed on rent alone — no personal financials needed.
Our Approach
We start by understanding the full scenario and what you want the finance to achieve. Depending on the transaction, our work can include:
Real Situations
Commercial lending varies by property and borrower type. Common transactions include:
Step by Step
Confirm the property, purchase price and intended use
Review the borrowing entity and ownership structure
Assess business cash flow and/or lease income
Estimate deposit, LVR and transaction costs
Compare lender appetite for the specific property type
Arrange valuation and prepare the credit submission
Respond to lender financial and property due diligence
Complete legal and finance documentation
Coordinate commercial settlement
A loan approval is only one part of the process. Derwent Finance focuses on understanding the objective, comparing lender policy and helping manage the application from initial strategy through to settlement. We assist borrowers across Australia with home loans, refinancing, investment, construction, self-employed, complex, commercial and business finance scenarios.
Where the best outcome is to keep an existing loan or wait until the borrower’s position changes, the recommendation should reflect that rather than moving a loan simply to create a transaction.
FAQs
It varies significantly by lender, property type and borrower strength.
Yes. Owner-occupied commercial property finance is common.
Potentially. Lenders may assess lease income and the borrower’s wider position.
They can be. Terms vary more widely than residential home loans.
Yes, subject to value and servicing.
Often yes.
Still have questions? Speak with our team
Ready to understand your options? Book a Strategy Call with Derwent Finance. We can review your current position, what you want to achieve and which lending pathways may be available.
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General information only. Credit assistance is subject to individual circumstances and lender criteria. Interest rates, fees, lender policy, government schemes and eligibility can change without notice. This website does not provide legal, taxation or financial advice. Content last reviewed: August 2026.
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