Commercial property: your questions answered

Yes. Commercial property lending, including owner-occupied, investment and SMSF purchases, is arranged through Lyft Financial, part of Lyft Capital. The same broker can coordinate your property and equipment finance.

Commercial lending is usually written to a lower loan-to-value ratio than residential, so expect to contribute more. Owner-occupied purchases commonly sit around 65% to 80% LVR depending on the property type and the strength of the business, meaning a deposit of roughly 20% to 35% plus costs. Specialised premises attract tighter LVRs than standard offices, warehouses or retail. Using equity in an existing property can reduce or replace the cash deposit.

It is possible where the property is genuine business real property and the arrangement complies with superannuation law, typically through a limited recourse borrowing arrangement. The fund borrows, a bare trust holds the asset, and the business pays market rent to the fund under a lease. Lenders apply conservative LVRs and want the fund to hold a liquidity buffer. This is an area where you need advice from your accountant and a qualified SMSF adviser before you commit.

Plan for six to twelve weeks from application to settlement in most cases. The steps that take time are the full financial assessment, a formal valuation of the property, legal documentation and any conditions the lender imposes before funding. Purchases with tight contract dates need the finance clause negotiated realistically at the outset. Refinances of an existing loan can be quicker where the property and the borrower are straightforward.