Commercial Property Loans Sydney
How Can a Commercial Property Loan Help My Business?
A commercial property loan can support very different goals depending on your situation, from buying the premises you already operate from, to building an investment portfolio, to funding a development.
Which of those goals you have matters more in commercial lending than in residential: industrial assets in Sydney’s western corridors and CBD office towers are assessed very differently by lenders, since one is judged on tenant demand and lease income, the other on asset grade and location within the CBD. So the same lender that’s comfortable with an industrial warehouse might take a far more conservative view of a secondary-grade office tower.
Can I Buy the Premises My Business Already Operates From?
Yes, this is one of the most common reasons business owners come to us. Lenders treat owner-occupied purchases as medium risk, generally offering more competitive terms than an investment or working capital deal, since your business’s own performance is the primary factor being assessed.
Can I Use a Commercial Loan to Build an Investment Portfolio?
Yes, you can. It’s often the most straightforward type of deal to finance. Investment purchases are typically viewed as lower risk by lenders, since approval leans heavily on the property’s rental income rather than a single business’s trading performance.
Can I Borrow Against a Commercial Property to Fund Day-to-Day Business Operations?
Yes, though lenders treat working capital lending as higher risk than a straight property purchase, since the funds are supporting your business’s operations rather than the asset itself. You can expect more scrutiny and typically less favourable terms than an owner-occupied or investment purchase.
Can I Purchase Through a Company or Trust Structure?
Yes, you can.
In most cases, it changes how the deal is assessed, regardless of what the property is used for. Buying through a company or trust can also trigger duty considerations beyond standard transfer duty, depending on the structure and the value of the land involved. This is complex territory that can vary case by case, so we always recommend confirming the specifics with your accountant rather than assuming a general rule applies to your situation.
We’ll help you understand how your structure affects both your borrowing options and your eventual loan terms.
How Does Our Sydney Commercial Property Loan Process Work?
Step 1: Is a Commercial Property Loan the Right Fit for My Business Goals?
We take a closer look at your income, liabilities, business performance, and the type of property you’re considering, alongside what you’re actually trying to achieve, whether that’s a long-term investment, securing your own premises, or scaling your portfolio.
Step 2: How Much Can I Borrow, and What Assets Can Support the Application?
We do a deeper dive into your available equity, cash reserves, and any assets that can support the deal. This is also where gaps in serviceability or unclear structures tend to surface. It’s usually better to deal with those now than later.
Step 3: Which Lender Offers the Best Structure for My Deal?
Different lenders approach the same deal very differently, some with real flexibility, others constrained by internal credit policy regardless of how strong your application is. We map loan-to-value ratios, repayment structures and rate types across a broad panel, assessing what works today and what still works in two or three years.
Step 4: What Happens Once I'm Ready to Submit?
We manage documentation, lender communication, and any conditions that come back, keeping the process moving instead of letting it drift. You stay focused on your business. We handle the process.
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Frequently Asked Questions
It depends on a blend of factors: income, business performance, existing commitments, and the property itself. Lenders examine risk closely, and two similar applications can get very different outcomes, so a proper assessment before submission gives you a much clearer view of what’s realistic.
Typically between 20% and 30%. Lenders generally cap lending at around 75% loan-to-value for investment purchases up to $1 million, though this varies by lender, deal and property type.
Usually up to 15 years, longer on application, and up to 30 years if the loan is secured against residential property. Interest-only periods are commonly available for up to 5 years.
Rates vary more than most people expect, depending on the lender, the loan structure, and how the deal is assessed for risk. Fixed and variable options are usually available, but pricing can differ significantly between lenders for what looks like the same deal on paper.
Longer than residential loans generally, since there’s more assessment involved. A well-prepared application can speed things up, but it’s still not a quick process in most cases.
A General Security Agreement (GSA) gives the lender security over all the assets owned by you or your company, on top of the property itself. Whether one applies depends heavily on the individual lender, your industry and how the deal is assessed overall. No fixed rule determines it.
Generally, GSAs are more common on larger or higher-risk deals, and a stronger financial position may improve your chances of avoiding one, but this varies enough between lenders that it’s worth asking directly about your specific deal, rather than assuming.
Yes, provided the purchase complies with superannuation law, including arm’s length dealings and your fund’s investment strategy. SMSF commercial lending has its own rules and lender requirements, so it’s worth getting guidance specific to your fund.
Mostly, yes, with one exception in your favour. NSW calculates transfer duty on commercial property using the same general sliding scale as residential, up to a top marginal rate of 5.5% on the portion of the price above $1,290,000. The difference is NSW’s 7% premium duty rate, which applies to residential property over $3.870 million and doesn’t apply to commercial or industrial land. First home buyer concessions don’t apply either way, since those are a residential-only concession.