Refinancing commercial property

Common reasons to refinance

• Your loan term or annual review is coming up and the lender's offer isn't competitive.
• Your rate has risen faster than the market.
• You want to release equity for another property or to grow the business.
• You want to consolidate several loans or lenders.
• Your lender has tightened its covenants or interest cover requirements.
• You need a longer term or an interest-only period to ease cash flow.

How a commercial refinance works

1. Review your current loan, lease and financials.
2. Order a valuation and shortlist lenders that suit the property and borrower.
3. Negotiate terms — rate, term, LVR, covenants and fees.
4. Formal approval, documents and settlement with your existing lender.

Watch the fine print

A lower rate can be wiped out by break costs, fees or tighter covenants. We compare the whole package — including interest cover ratios, review dates and how the lender treats the lease — so the new loan works for the full term.

Refinancing an SMSF commercial loan

If your fund borrowed through an LRBA, you can usually move it to a new lender. The key is that the same single asset stays in the bare trust and the new loan meets super borrowing rules. Read more in our SMSF commercial property loan guide.