Commercial Property Finance Australia: Loans for Buying, Refinancing and Unlocking Equity
Commercial property finance is funding secured by commercial real estate, such as an office, warehouse, industrial facility, retail shop, medical suite or mixed-use property.
In Australia, business owners and investors use commercial property loans to buy a commercial property, refinance existing debt, access equity, complete an urgent settlement, consolidate eligible business debt or fund a short-term property transaction.
The suitable loan depends on the property, existing debt, LVR, rental income or business circumstances, purpose of funds, required timeframe and repayment plan.
At Assurity Capital, private commercial property finance is considered for genuine business and investment purposes only. Finance is not available for consumer or owner-occupied personal lending.
What is commercial property finance?
Commercial property finance is a loan secured by a commercial or income-producing property.
It may be used by:
Business owners buying their own premises.
Commercial property investors.
Developers and property professionals.
Companies, trusts and SMSFs, subject to assessment.
Borrowers refinancing existing commercial property debt.
Investors seeking to access equity for an eligible business or investment purpose.
Commercial finance may be provided by a bank, non-bank lender or private lender. A private commercial loan is commonly structured as short-term property-backed finance with a defined exit strategy.
What types of commercial property can be used as security?
The property types a lender will consider vary, but may include:
Office buildings and office suites.
Retail shops and shopping-centre premises.
Industrial warehouses and factories.
Logistics and storage facilities.
Medical, allied-health or professional suites.
Mixed-use properties.
Commercial strata units.
Hotels, accommodation or specialised assets.
Development sites.
Rural or other specialist property, subject to lender criteria.
The lender will consider more than the property category. Location, condition, tenancy, lease terms, vacancy, marketability, ownership structure and valuation all affect the assessment.
Can I get a loan to buy a commercial property?
Potentially, yes.
Commercial property finance may be used to purchase:
A business premises for owner occupation.
An investment property that produces rental income.
A warehouse, factory or industrial facility.
A retail, office or medical property.
A commercial property opportunity requiring a short settlement period.
A lender will assess the purchase price, valuation, deposit or equity contribution, borrower structure, property type, existing debt, loan purpose and repayment strategy.
For a mainstream commercial property loan, a lender may also focus heavily on rental income, business income, financial statements, serviceability and lease details. A private lender may be more suitable where the transaction is time-sensitive, complex or short-term, provided there is suitable security and a clear exit strategy.
Can I refinance a commercial property loan?
Potentially.
Commercial property refinancing means replacing an existing commercial loan with a new facility. A refinance may be considered to:
Obtain a more suitable loan structure.
Pay out an expiring private or short-term loan.
Consolidate eligible business debt.
Release equity for an eligible business or investment purpose.
Refinance a loan where the existing lender will not extend.
Create time before a longer-term bank refinance or property sale.
A refinance is not automatic. The new lender will assess the current position, including the existing payout figure, property value, LVR, rental or business circumstances, purpose of funds and exit strategy.
How much can I borrow for commercial property finance?
The amount depends on the property’s accepted value and the total debt secured against it.
Lenders may assess:
Property type and location.
Marketability and condition.
Current vacancy or tenancy position.
Lease income and lease terms, where relevant.
Purchase price or current valuation.
Existing mortgages, caveats or other security interests.
LVR or combined LVR.
Borrower, company, trust or SMSF structure.
Loan purpose and repayment plan.
For example:
Commercial property value: $3,000,000
Existing loan payout: $1,500,000
Proposed additional funding and costs: $300,000
Total debt after settlement: $1,800,000
$1,800,000 ÷ $3,000,000 × 100 = 60%
The proposed LVR is 60%.
A 60% LVR is an example only. It does not guarantee approval, as commercial lenders assess the complete scenario—not just the LVR.
What is LVR for commercial property?
LVR means loan-to-value ratio. It compares the total debt secured against the commercial property with the lender’s accepted property value.
For a first mortgage, the lender assesses the proposed first-ranking debt.
For a second mortgage, the lender assesses the combined LVR. This includes the existing first mortgage plus the proposed second mortgage.
For example:
Commercial property value: $2,500,000
Existing first mortgage: $1,000,000
Proposed second mortgage: $350,000
Total debt after settlement: $1,350,000
The combined LVR is 54%.
Commercial LVR limits vary considerably depending on property type, tenancy, location, valuation, loan purpose, lender criteria and whether the facility is first or second mortgage security.
Can I access equity in a commercial property?
Potentially, yes.
Commercial property equity is the difference between the property’s value and debt already secured against it. A borrower with sufficient available equity may be able to access capital through:
A refinance of the existing commercial property loan.
An increase or top-up from the existing lender.
A new first mortgage.
A second mortgage behind the existing first mortgage.
A private short-term property-backed loan.
A second mortgage may be useful where the borrower wants to preserve an existing first mortgage, such as a fixed-rate commercial facility or a loan with favourable terms. However, the existing lender’s security position, loan documents and combined LVR must be reviewed before settlement.
Commercial property loan vs private commercial loan
Feature | Mainstream commercial property loan | Private commercial property loan |
Typical purpose | Longer-term property ownership, investment or business premises | Defined, short-term business or investment funding need |
Assessment | Often focused on financials, serviceability, tenancy and policy | Strong focus on security, equity, LVR, purpose and exit |
Timing | May take longer, particularly for complex structures | May be faster in straightforward, eligible scenarios |
Term | Often longer-term | Commonly short-term |
Cost | May be lower where mainstream criteria are met | May involve higher interest, fees and costs |
Exit | Scheduled repayments from business or rental income | Refinance, sale, asset sale or documented capital event |
Neither is automatically better. The appropriate option depends on the transaction, timing, cost, available security and ability to repay.
Can I get commercial property finance with bad credit?
Potentially.
A poor credit history does not automatically rule out private commercial property finance. Private lenders may place substantial weight on the quality of the security, equity, LVR, business or investment purpose and exit strategy.
Credit history, repayment conduct, current defaults and borrower circumstances may still be relevant. The borrower must have a commercially sensible transaction and a credible plan for repaying the loan.
Can I get commercial property finance without financials?
Potentially, depending on the scenario.
Private commercial lending may be relevant where a borrower cannot provide the financials, serviceability evidence or documentation required by a mainstream lender. This can include self-employed business owners, investors, developers and borrowers with complex company or trust structures.
However, limited financials do not mean no assessment. The lender may still require:
Property details and valuation evidence.
Existing mortgage statements and payout figures.
Lease details, where applicable.
Company, trust or SMSF documents.
Details of the loan purpose.
Evidence supporting the proposed exit strategy.
What is an exit strategy for private commercial property finance?
An exit strategy explains how a short-term private commercial loan will be repaid.
Common exit strategies include:
Refinancing into a bank or non-bank commercial property loan.
Sale of the secured commercial property.
Sale of another asset or property.
Completion and sale of a development.
A verified business sale or capital event.
Improved lease income or business performance supporting a future refinance.
A future refinance should never be assumed. The borrower needs to consider future property value, serviceability, lease income, business performance and the next lender’s criteria.
What are the risks and costs of commercial property finance?
Commercial property finance is a serious financial commitment. The property is security for the debt and may be at risk if the loan is not repaid.
Borrowers should understand:
The interest rate, fees and total cost of the loan.
Whether interest is paid monthly or capitalised.
The term and maturity date.
The total debt secured against the property.
The LVR or combined LVR.
The impact of vacancy, lease expiry or reduced rental income.
The effect of property-value changes.
The consequences if a property sale or refinance is delayed.
Independent legal, financial and tax advice should be obtained where appropriate.
Commercial property finance with Assurity Capital
Assurity Capital assists business owners, investors and property professionals across Sydney, NSW and Australia with private commercial property finance.
We consider private first mortgages, second mortgages, commercial-property refinancing, bridging finance, debt consolidation and short-term business funding where there is suitable property security, an eligible business or investment purpose and a realistic exit strategy.
Whether you are purchasing commercial property, refinancing an existing facility, accessing equity or managing an urgent settlement, each scenario is assessed individually.
Finance is subject to assessment, suitable security, eligibility, lender criteria, fees, approval and a realistic exit strategy.
Apply with Assurity Capital Today!
What is commercial property finance?
Commercial property finance is a loan secured by commercial real estate. It may be used to buy, refinance or access equity in office, retail, industrial, warehouse, medical or other commercial property.
Can I use commercial property equity for business funding?
Potentially. Available equity in suitable commercial property may be used as security for an eligible business or investment-purpose loan, subject to property value, existing debt, LVR and lender criteria.
Can I refinance an expiring commercial property loan?
Potentially. A lender may consider refinancing an expiring commercial loan where the property security, payout figure, LVR, loan purpose and exit strategy meet its criteria.
Can I get a second mortgage over commercial property?
Potentially. A second mortgage may be considered behind an existing first mortgage where there is sufficient equity, an acceptable combined LVR and a suitable business or investment purpose.
How quickly can commercial property finance settle?
Timing depends on the property, valuation, existing lender payout, tenancy, legal documentation, ownership structure and lender conditions. No settlement date should be assumed until the full scenario has been assessed.
Does Assurity Capital provide consumer commercial loans?
No. Assurity Capital considers private property-backed finance for eligible business and investment purposes only.
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