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Commercial property

Commercial property, financed structurally.

Office, retail, industrial, mixed-use. Each asset class has a different lender appetite, LVR ceiling, and ICR expectation. The broker's job is to know which desk to approach first.

Different rules by property type.

Commercial property lending is segmented by asset type. Office in CBD and near-CBD locations attracts wider lender appetite than suburban office. Retail is heavily dependent on tenant quality and lease length. Industrial — especially near-port and logistics — is the strongest asset class right now and attracts competitive pricing. Hospitality, accommodation, and service stations are specialised categories that only a handful of lenders will touch.

Owner-occupier commercial (you're buying the premises your own business operates from) is often a cleaner conversation than pure investment commercial — some lenders will go to 80% LVR for owner-occupiers vs 65-70% for investors. We'll flag the strategy in the discovery call.

Commercial property FAQs

What's an ICR and why does it matter?
Interest Cover Ratio — the ratio of the property's net rental income to the loan's interest expense. Lenders typically want ICR of 1.3x to 1.5x. If the property's rental income doesn't comfortably cover the interest at current rates (and a stress-test rate), the deal won't fly.
Can I use an SMSF to buy commercial property?
Yes — see our SMSF commercial page. The advantages are particularly strong when you operate a business from the property, via a related-party lease structure.
How long are commercial loan terms?
Most commercial loans are written on 3, 5 or 10-year terms with balloon repayments or refinance events at the end. The amortisation profile behind that is usually 15-25 years.

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General advice disclaimer. The information on this page is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider whether it is appropriate for you before acting on it, and seek professional advice where relevant.

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