Commercial Property Loan
Last reviewed 13 June 2026 by Nick Lim, finance broker (FBAA).
Commercial Property Loan is finance used to buy, refinance or develop property used for business purposes, such as offices, warehouses, retail premises or factories. Commercial loan-to-value ratios are typically around 65 to 70 percent, lower than the 80 to 90 percent common on a home loan, so the deposit is larger. Lenders assess it on the property value, the rental or business income and the borrower's serviceability, and it is usually secured by a registered first mortgage.
Why Commercial Property Loan Matters
Commercial property lending has its own rules on deposit, income and risk, so it pays to understand how lenders read the deal.
- Funds business-use property, owner-occupied or investment
- Lower LVR than residential, so a bigger deposit
- Assessed on property value and income plus serviceability
- Secured by a first mortgage over the property
- Can be linked via cross-collateralisation
Common Features of Commercial Property Loan
- For offices, warehouses, retail, factories and similar
- Typical LVR around 65 to 70 percent
- Income from lease or owner-occupied trade considered
- Terms and rates vary by use and tenant strength
- Often a registered first mortgage as security
Official reference: business.gov.au
What is a commercial property loan?
Finance to buy, refinance or develop business-use property. To arrange one, see our commercial property loans page.
How much deposit for a commercial property loan?
More than a home loan, because the LVR is usually around 65 to 70 percent. The exact figure varies by lender and property.
How do lenders assess a commercial property loan?
On the property value, the rental or business income, and the borrower's serviceability.
Can I use one property as security for another?
Sometimes, through cross-collateralisation, though it reduces flexibility.
Is a commercial property loan secured by a first mortgage?
Usually yes, a registered first mortgage over the property is the primary security.