Owner-Occupied Premises
Purchase an office, warehouse, medical premises, retail property or other commercial asset for your own business operations.
COMMERCIAL PROPERTY FINANCE
Commercial Property Finance for Your Business or Investment.
Commercial property finance can be structured very differently from a residential home loan. The property type, business financials, lease income, loan purpose, ownership structure and lender appetite can all influence the outcome. We help you work through those variables and compare appropriate lending options.
COMMERCIAL PROPERTY PURPOSES
Commercial Finance for Different Property Strategies
The appropriate lending structure depends heavily on why you're purchasing the property and how it will be used.
Commercial Investment
Finance a tenanted commercial property where rental income and lease terms may form part of the lender's assessment.
Refinance Existing Debt
Review commercial property debt where the current facility, pricing, term or structure no longer suits your objectives.
Equity & Business Expansion
Depending on lender policy, commercial property equity may potentially support approved business or investment purposes.
HOW COMMERCIAL PROPERTY FINANCE WORKS
The Property Is Only One Part of the Assessment
Commercial lenders can assess the borrower, business, security property and transaction together.
1
Understand the Transaction
We look at the purchase price, property type, intended use, contribution, ownership entity and proposed loan amount.
2
Review Financial Information
Depending on the lender and structure, this may include business financial statements, tax returns, management accounts or other income evidence.
3
Assess the Property
The property type, location, marketability, lease profile and valuation can affect lender appetite and acceptable leverage.
4
Compare Lender Options
Commercial lending policies can differ significantly, so we compare lenders based on the overall transaction rather than rate alone.
5
Valuation & Credit Assessment
The lender may arrange a commercial valuation and conduct a detailed credit assessment before issuing formal approval.
6
Documentation & Settlement
Once approval conditions and loan documentation are complete, the transaction progresses toward settlement.
COMMERCIAL PROPERTY LVR
Not Every Commercial Property Is Treated the Same
The amount a lender is prepared to lend against a commercial property can vary considerably depending on the security.
An established office, warehouse or retail property in a strong location may be viewed differently from a highly specialised premises with a limited resale market.
Property type, location, lease profile, borrower strength, transaction size and lender appetite can all influence the maximum loan-to-value ratio.
Discuss your property and proposed LVR →WHAT CAN AFFECT COMMERCIAL LENDING?
The lender looks at the complete transaction.
01
Property type and location
02
Borrower and business strength
03
Lease, valuation and proposed LVR
TYPES OF COMMERCIAL PROPERTY
Different Assets Can Require Different Lenders
Lender appetite can vary substantially depending on the nature and use of the property.
Office & Retail
Offices, retail premises, consulting rooms and similar properties may be considered based on location, marketability, lease arrangements and borrower strength.
Industrial & Warehouse
Warehouses, factories and industrial properties can be financed for owner occupation or investment depending on lender policy and property characteristics.
Specialised Property
Medical facilities, childcare, hospitality, service stations and other specialised securities may require lenders with specific industry or property appetite.
OWNER-OCCUPIED COMMERCIAL PROPERTY
Stop paying rent and own the premises?
01
Business occupies the property
02
Business cash flow may support servicing
03
Build equity in a business asset
OWN OR INVEST?
The Purpose Changes How the Deal Is Assessed
If your business will occupy the premises, lenders may focus heavily on the financial performance and capacity of the operating business.
For investment property, the lease, tenant, rental income, remaining lease term and property value may also become important factors.
In either case, the ownership structure should be considered carefully with your accountant and legal adviser before entering into the transaction.
Talk through the proposed structure →PREPARING FOR A COMMERCIAL APPLICATION
The Right Information Helps Build a Stronger Application
Commercial applications are often more bespoke than residential loans, so good preparation matters.
Financial Position
Business income, profitability, existing debt, asset position and the proposed contribution may all be relevant.
Understand the borrowerProperty & Valuation
Property use, condition, location, lease arrangements and lender valuation can influence the finance structure.
Understand the securityLoan Structure
Loan term, amortisation, interest-only periods, security structure and lender conditions can vary between commercial lenders.
Understand the facilityWHY TULIP FINANCE
Commercial Lending Is About Finding the Right Credit Appetite.
Commercial finance is rarely a one-size-fits-all exercise. Two lenders can assess the same property and business very differently.
We help present the transaction clearly, identify lenders whose credit appetite may suit the scenario and compare the broader structure — not simply the headline rate.
Learn more about Tulip Finance →COMMERCIAL PROPERTY FAQs
Questions About Commercial Property Finance?
Commercial lending can vary significantly between properties and lenders.
How much can I borrow against a commercial property?
The maximum loan-to-value ratio varies depending on the property type, location, transaction, borrower, lender and other risk factors. Commercial LVRs are generally assessed on a case-by-case basis.
Can I buy the premises my business currently rents?
Potentially. The lender will generally assess the purchase, property and financial capacity of the borrowing entity or supporting business.
Can rental income help service a commercial property loan?
For investment properties, lenders may consider rental income subject to their own assessment method, lease terms, tenant profile and other requirements.
Do commercial loans have 30-year terms like home loans?
Commercial loan terms and amortisation periods vary. Some lenders offer longer terms while others may require shorter contractual periods or periodic reviews.
Can a trust or company purchase commercial property?
Commercial property can potentially be acquired through different ownership structures, subject to lender policy. The legal and taxation implications should be discussed with your accountant and legal adviser.
Do I need two years of business financials?
Requirements vary substantially between lenders and commercial finance products. Some applications may rely on full financial information, while alternative assessment methods may be available in appropriate circumstances.
HAVE A COMMERCIAL PROPERTY IN MIND?
Let's Work Through the Deal Before You Commit.
Tell us about the property, purchase price, business, contribution and proposed use and we can help you understand the lending options available.
Information on this page is general in nature and does not take into
account your individual objectives, financial situation or needs.
Commercial lending policies, loan terms, fees, interest rates,
loan-to-value ratios, valuation requirements and credit criteria vary
between lenders and transactions. Taxation and ownership structures
should be discussed with appropriately qualified professional advisers.
Please refer to our Disclaimer and Credit Guide for further information.