Commercial property loan · Property owners
Commercial property loan for property owners
Property owner business finance is lending where the applicant or director owns residential or commercial real estate, which widens the lender panel and lowers pricing even when the property is not offered as security.
How a commercial property loan works for property owners
Business owners who already hold residential property are often well positioned to buy the premises their business occupies, using existing equity toward the deposit. Commercial loans generally require 20–30% down, and owner-occupied facilities are assessed on the trading business rather than on market rent. Owning your premises removes lease renewal risk and converts rent into equity. Get advice on the holding structure — company, trust or self-managed super fund — before you exchange, because changing it afterwards is expensive.
The cash-flow pattern we plan around
Business cash flow assessed alongside personal property equity, which lenders treat as a buffer even where no security is taken over the property.
What property owners typically fund
- Larger facility limits than an unsecured position allows
- Lower-cost funding for expansion or acquisition
- Consolidating expensive short-term business debt
- Buying commercial premises for the business
Commercial property loan for property owners: the numbers
| Typical amounts | $250,000 – $20,000,000 |
|---|---|
| Term | 12–360 months |
| Indicative rates | 6.2% – 9.9% p.a. |
| Repayments | Monthly |
| Speed | 2–6 weeks |
| Documents property owners usually need | ABN and business financials or bank statements · Rates notice and current mortgage statements for the property · Personal asset and liability statement |
Rates shown are indicative ranges observed across our lender panel for the period stated. They are not an offer or quote. Your rate depends on your business, the lender, the amount, the term and the security offered. The lender makes the final credit decision.
Key terms
Property-backed business lending
Property-backed business lending is finance secured by residential or commercial real estate owned by the business or its directors, offering longer terms and lower rates than unsecured lending in exchange for putting that property at risk.
Property ownership pricing benefit
The property ownership pricing benefit is the lower rate and higher limit many Australian lenders offer a director who owns real estate, applied even when no security is taken over that property.
What is a commercial property loan?
A commercial property loan is a mortgage over non-residential property such as offices, warehouses, retail or industrial units. It can be full-doc, low-doc or lease-doc depending on how servicing is assessed.