What Is a Commercial Property Loan?
A commercial property loan is a type of finance used to purchase, construct, or refinance a property that is used for business or investment purposes. This includes office buildings, retail premises, industrial warehouses, medical centres, and mixed-use developments.
Unlike residential mortgages, commercial property loans are assessed differently by lenders with closer scrutiny of the property type, lease terms, business financials, and loan-to-value ratio (LVR). This is precisely why working with an experienced commercial mortgage broker makes a meaningful difference to the outcome.
Stanford Financial has access to over 50 lenders including specialist commercial lenders that major banks do not offer direct access to. We compare policies, negotiate terms, and structure your application to give you the strongest possible position at no cost to you.
Types of Commercial Property Loans We Can Help With
Standard Commercial Property Loans – For businesses purchasing or refinancing a commercial property they will occupy, or investors acquiring a commercial property as an income-producing asset. Loan terms typically range from 15 to 30 years, with interest-only options available.
Low Doc Commercial Loans – Designed for self-employed borrowers and small business owners who cannot provide traditional income documentation such as full tax returns. Lenders may accept BAS statements, an accountant’s declaration, or business bank statements instead. This is an area where access to specialist lenders through a broker is particularly valuable.
Commercial Construction Loans – Finance for developers and business owners building commercial premises. Funds are typically drawn in stages as construction progresses. Lenders assess the project plan, builder, and exit strategy as part of the application.
SMSF Commercial Property Loans – Self-managed super fund (SMSF) trustees can purchase commercial property through their fund using a Limited Recourse Borrowing Arrangement (LRBA). Unlike residential SMSF loans, SMSF members can purchase commercial property from, and lease it back to, a related business — making this a popular strategy for business owners. Stanford Financial can structure this in conjunction with Stanford Legal’s property and succession planning expertise.
Commercial Refinancing – If you already hold a commercial property loan, refinancing could secure a lower interest rate, better terms, or release equity for further investment. As a broker we can review your current position and identify whether switching lenders or renegotiating your existing arrangement makes financial sense.
How Much Deposit Do You Need for a Commercial Property Loan?
Commercial property loans generally require a larger deposit than residential loans. Most lenders will advance up to 70% of the property’s value (a 70% LVR), meaning you will typically need a minimum 30% deposit plus costs. Some specialist lenders will go to 75–80% LVR for strong applications or where additional security is provided.
The required deposit varies based on several factors:
- Property type — industrial and warehouse properties are often treated more favourably than specialised retail or hospitality premises
- Location — metropolitan and major regional centres attract better LVR policies than rural or remote properties
- Tenancy — a long-term lease to a strong tenant significantly improves LVR availability
- Borrower profile — established businesses with clean financials have access to more competitive policies
A mortgage broker can identify which lenders offer the most flexible LVR policies for your specific property type and circumstances, rather than being limited to the policy of a single bank.
Commercial Property Types We Finance
|
Property Type |
Common Use Cases |
Lender Appetite |
|
Retail |
Shops, showrooms, strip retail |
Moderate — tenant quality matters |
|
Office |
Commercial offices, strata offices |
Moderate to strong |
|
Industrial & Warehouse |
Factories, storage, logistics |
Strong — preferred by many lenders |
|
Medical & Healthcare |
GP clinics, specialist suites, allied health |
Strong — low vacancy risk |
|
Mixed Use |
Retail/residential, office/retail |
Moderate — assessed on primary use |
|
Development Sites |
Land with DA approval |
Specialist lenders — assessed case by case |
Not sure whether your property fits standard commercial lending criteria? Our team regularly works with lenders who take a case-by-case approach to non-standard properties.
What Do Lenders Assess for a Commercial Property Loan?
Commercial lending is assessed very differently to residential mortgages. Lenders look at both the borrower and the property, and the weight given to each varies between lenders.
Borrower Assessment
- Business financials – typically two years of tax returns and financial statements for established businesses
- Trading history – most lenders prefer at least two years of operating history; start-ups face additional scrutiny
- Credit history – both personal and business credit is reviewed
- Personal income – guarantees are commonly required from directors or major shareholders
- Existing debts – total debt exposure is assessed across all entities
Property Assessment
- Property type and location
- Current or proposed tenancy, lease terms, and tenant quality
- Rental yield relative to loan repayments (debt service coverage ratio)
- Independent valuation — required by all lenders before approval
- Zoning and any development restrictions
For Self-Employed Borrowers
- Self-employed applicants and business owners who cannot produce standard income documentation may still qualify through low doc commercial loan options. These use alternative verification methods such as BAS statements, accountant declarations, or business bank statements. Stanford Financial has strong relationships with specialist lenders who specifically cater to this segment.
Kickstart Your Commercial Endeavour Today
Commence Your Commercial Property Loan
Are you ready to elevate your business ambitions? Trust Stanford Financial’s expertise, dedication and customised approach. With us, your commercial aspirations are not just dreams but achievable goals.
Our Approach to Commercial Property Loans
Simplifying the Commercial Finance Process
Handling the process of commercial property loans can seem intimidating. We break things down, avoiding the jargon and speak in terms you understand. Our strength is in crafting individually tailored finance solutions. We’re not merely a transaction-based firm, we’re dedicated to investing in creating life-enriching outcomes for our clients. Our focus is to ensure you feel educated, in control and confident in every financial decision.
Your Ideal Partner for Commercial Loans
Nationwide Expertise with a Personal Touch
Our genuine and passionate approach is founded on a simple belief: giving Aussies a fair go. With nationwide coverage and access to over 50 lenders, our premium white glove service ensures a seamless, stress-free and enjoyable experience.
It is not just about securing your loan, but about being an unwavering partner on your commercial financial journey, offering guidance, transparency and expertise at every step.
Commercial Loans in Brisbane and across Australia
Going Beyond Traditional Brokering
Your partnership with us is fuelled by sincerity and competence. We recognise the importance of community and hard work. That’s why we’re not just about reading bank policies; we innovate, creating pathways where none exist, refusing to take ‘no’ as an answer.
Trust a Team that Understands and Delivers
Pioneering and Transforming the Commercial Loan Landscape
Choosing Stanford Financial means collaborating with a local Brisbane team that deeply understands diverse financial challenges. We’re not just brokers; we’re trailblazers, changing policies and making banks understand different financial situations. Your story, business, and ambitions are not just another file to us, but a partnership we value.
Partnering for Success Commercial Property Loan
Navigating the world of commercial real estate can be intricate. While others might look out for their interests, we ensure you’re at the heart of every decision. Our commitment is to work alongside you, making decisions together, keeping your best interests always in sight. With Stanford Financial, it is not a mere transaction, but a lasting partnership, ensuring that even post-settlement, you’re equipped with the best deals.
Kickstart Your Commercial Endeavour Today
Commence Your Commercial Property Loan
Are you ready to elevate your business ambitions? Trust Stanford Financial’s expertise, dedication and customised approach. With us, your commercial aspirations are not just dreams but achievable goals.
Frequently Asked Questions
What is the difference between a commercial loan and a business loan?
A commercial property loan is secured by commercial real estate — the property itself acts as the primary security for the lender. A business loan may be secured or unsecured and is typically used to fund business operations, equipment, or working capital rather than a property purchase. Some lenders use the terms interchangeably, but they are structurally different products. Stanford Financial can assist with both.
How much deposit do I need for a commercial property loan?
Most commercial lenders will lend up to 70% of the property’s value, meaning you will need a minimum 30% deposit plus associated costs such as stamp duty, legal fees, and valuation. Some specialist lenders offer higher LVRs for strong applications. The required deposit depends on the property type, location, tenancy, and your financial position. A broker can identify the most competitive options for your specific circumstances.
Can I get a commercial property loan through my SMSF?
Yes. SMSF trustees can purchase commercial property through a Limited Recourse Borrowing Arrangement (LRBA). One of the key advantages of holding commercial property inside an SMSF is that the property can be purchased from, or leased to, a related business — making it a popular strategy for business owners approaching retirement. Speak with us about how this might work for your situation.
How long are commercial loan terms?
Commercial loan terms typically range from 15 to 30 years. Interest-only periods of one to five years are commonly available and can assist with cash flow during the early stages of ownership or development. Shorter terms or balloon structures may apply for certain lenders or property types.
Can I get a commercial property loan as a start-up or new business?
Yes, though it is generally more challenging. Most lenders prefer two or more years of trading history. For start-ups, lenders typically require a more substantial deposit, a detailed business plan, personal guarantees, and strong personal financial history. There are specialist lenders who take a more flexible approach — a broker can identify which ones are most likely to consider your application. Whether expanding your business or starting anew, our Ipswich mortgage brokers offer tailored commercial loans Australia-wide
