Commercial property lending works differently
If you have only dealt with residential home loans, commercial property finance will feel like a different world. It largely is. Banks use different criteria, different loan-to-value ratios, and a different risk lens when assessing commercial property.
Loan-to-value ratios are lower
Most commercial property loans sit between 60% and 70% LVR, compared to 80% or more for residential. Some lenders will go higher depending on the property type, tenant quality, and your overall position, but you need a larger deposit or more equity.
The property itself is assessed differently
Banks look at the lease terms, who the tenant is, how long they have remaining, and whether the property would be easy to re-lease if the tenant left. A well-leased office building in a CBD location is assessed very differently to a single-use industrial property.
Your business finances matter
For owner-occupied commercial property, your business needs to demonstrate the cash flow to service the loan. Banks will review your business financials, not just your personal income.
Loan terms and structures vary
Interest rates, loan terms, repayment structures, and fee arrangements differ across lenders. Some offer interest-only periods; others require principal and interest from day one. We know which lenders suit which situations.
How the deal is presented to the bank matters
A commercial property proposal that is well-structured and includes the right supporting information gets assessed faster and more favourably. We prepare proposals that answer the bank’s questions before they ask them.
