What lenders assess on a commercial loan
- The lease — how long is left (WALE), rent reviews, who pays outgoings.
- The tenant — national brand, established local business, or vacant.
- Interest cover — whether net rent comfortably covers the loan interest.
- The asset — location, property type and how easily it would resell.
- You — your other income, assets and borrowing history.
Typical commercial loan settings
| Property type | Typical max LVR |
|---|---|
| Industrial / warehouse, office, retail (well leased) | Around 70–80% |
| Medical suites, childcare, specialised assets | Often 60–70%, lender dependent |
| Vacant or short lease | Usually lower, case by case |
Commercial loans are often written for 3–5 years, then reviewed or extended, with repayments calculated over up to 25–30 years. Interest-only periods are common for investors.
Choosing the right ownership structure
Who owns the property affects tax, asset protection and which lenders you can use. Common options are your own name, a company or trust, or your SMSF. Get structure advice from your accountant before you sign a contract — changing it later can trigger stamp duty and CGT.
Self-employed or newer business?
If your tax returns don't show your current income, a low doc commercial loan using BAS or an accountant's declaration may be an option.