Commercial Property Loans in Australia (2026): How to Buy Your Business Premises
Buying your own business premises with a commercial property loan, 2026 (indicative figures, Everstone Finance). Buying through your super instead? Our guide to how to buy property with your super walks the SMSF version step by step. And with the strong dollar widening import margins, our piece on converting the currency windfall into premises covers the timing.
- A commercial property loan lets a business buy its own premises, a factory, warehouse, office, shop or other commercial real estate, instead of renting.
- Owner-occupiers (you run your business from the premises) get the best terms: typically up to 80% LVR, meaning a deposit from around 20%, with sharper rates than investors, across the lenders on Everstone’s panel.
- Indicative owner-occupier rates start from around 6% p.a. as at July 2026 across Everstone’s 40+ lender panel, higher than home loans, and entirely dependent on the asset, location and your financials.
- Industrial (factories and warehouses) is the lender favourite right now, with industrial vacancy remaining historically tight; well-located office is funded more cautiously.
- Most commercial deals still go direct to a bank, while a large majority of home loans are broker-arranged. The gap, and the opportunity, is real.
For years, the smartest move a business owner can make has been hiding in plain sight: buying the premises your business already runs from. Every month of rent builds your landlord’s wealth, not yours, and a commercial property loan is the tool that flips that.
Yet commercial finance remains one of the most under-served corners of Australian lending. While a large majority of home loans now go through a mortgage broker, most commercial deals still go direct, which means most business owners are still walking into a single bank and taking whatever that bank offers.
This guide explains how commercial property loans work in 2026: deposits, LVR, interest rates, loan terms, the difference between buying a factory and an office, the SMSF option, and the costs people forget. It is the way we would walk a client through it at Everstone Finance. All rate and LVR figures are indicative as at July 2026 and depend entirely on your situation. If the premises houses your own healthcare practice, our practice purchase finance guide covers buying the business and the building together. Note that from 10 August 2026 new residential borrowing in super ends while commercial continues, as our SMSF ban explainer details. Existing borrowers can quantify their position with our refinance savings calculator before any review.
- What is a commercial property loan?
- Types of commercial property loans
- How much deposit you need
- Interest rates & loan terms (2026)
- How to compare rates (2026)
- Owner-occupier vs investment
- Factory vs warehouse vs office
- What lenders assess
- The costs beyond the deposit
- Buying through your SMSF
- Why use a commercial broker
- How to buy your premises
- Glossary
- FAQ
Commercial property loan rates in Australia in 2026 typically sit a margin above home loan rates, varying by security, lease and borrower strength. Across the lenders on Everstone’s panel, most fund up to 70 to 80 percent of the property value, sometimes higher with extra security. A broker comparing many lenders helps you find your sharpest rate and borrowing capacity.
What is a commercial property loan?
A commercial property loan is finance used to buy, refinance or develop commercial real estate, offices, retail shops, factories, warehouses, industrial units, medical centres and similar. It differs from a home loan in that lenders assess the strength of the business behind it, require a larger deposit (commonly 20 to 35% across Everstone’s lender panel), charge higher interest rates, and offer shorter loan terms.
The single most important distinction is who occupies the property. If your own business will operate from the premises, generally occupying at least 51% of the floor space, the threshold most lenders on Everstone’s panel apply, you are an owner-occupier, and that is the strongest position to borrow from. If you are buying to lease the building to a third party, you are a commercial property investor, and the terms are tighter. Most business owners reading this are owner-occupiers, which is good news, because that is where the better deals live.
What types of commercial property loans are there?
Commercial property loans come in a handful of forms: full doc loans assessed on complete financials, lease doc loans assessed on the property’s rental income, low doc and alt doc loans that use alternative income evidence, SMSF loans written inside a self-managed super fund, and development finance for construction projects. Which one fits depends on who occupies the property, how your income is evidenced and what the money is for.
Full doc commercial loans
A full doc loan is the standard product. You provide complete financials, tax returns and BAS, and the lender assesses the business and the property together. Because the lender sees the whole picture, full doc applications generally open the widest choice of lenders and the strongest combination of LVR and pricing available for a given asset.
Lease doc commercial loans
A lease doc loan is assessed on the rent the property earns rather than your business financials, so the lease does the talking. It suits investors whose tenanted property comfortably covers the repayments and who prefer not to produce full financials. It is available at select lenders, generally with lower maximum LVRs than a comparable full doc facility.
Low doc and alt doc commercial loans
Low doc and alt doc loans use alternative evidence of income, such as an accountant’s declaration, BAS or business bank statements, where up-to-date full financials are not yet available. They exist at select lenders for genuine cases, and the lighter paperwork is usually traded off against a lower maximum LVR or closer scrutiny elsewhere in the file.
SMSF commercial property loans
An SMSF loan lets your self-managed super fund buy commercial property, including your own business premises leased back to the business at market rent, using a Limited Recourse Borrowing Arrangement. Fewer lenders operate in this space and LVR caps sit lower. Our guide to SMSF commercial property loans covers the structure in detail.
Commercial development finance
Development finance funds the construction or substantial improvement of commercial property, drawn progressively as building stages complete rather than advanced in one lump. Lenders assess the project, the builder and the exit, whether that is sale on completion or refinance to a standard facility. It is written at select lenders and structured deal by deal.
Which loan type fits your file?
Pick the line that describes your purchase and we will tell you which of the five products it points to, and what to read next.
Commercial is won on structure, not slogans.
The gap between lenders on LVR, covenant terms and how they read your income is far wider in commercial than residential. A former banker maps which lenders actually fit your asset and structure before you approach anyone. Free, and it protects your credit file from scattergun applications.
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How much deposit do you need for a commercial property loan?
Across the lenders on Everstone’s panel, most commercial property loans in Australia require a deposit of 20 to 35%, reflecting maximum LVRs of roughly 65 to 80%. Strong owner-occupiers buying quality industrial property can often reach 80% LVR (a 20% deposit), while investors and specialised assets usually need 30 to 40%. The LVR is calculated on the lender’s independent valuation, not your contract price.
Where you land inside that range depends mostly on the asset and the strength of your business. On a $1 million purchase at 75% LVR, you would need roughly $250,000 deposit plus costs. The catch most first-time commercial buyers miss is the valuation: if the lender values the property below what you have agreed to pay, your required deposit rises to cover the gap. Knowing which lenders value a given asset class and location generously is exactly where a broker earns their keep.
| Property type | Typical owner-occupier LVR | Indicative deposit |
|---|---|---|
| Industrial (factory, warehouse) | Up to 80% | From 20% |
| Office (well-located) | 65 to 75% | 25 to 35% |
| Retail / shopfront | 65 to 75% | 25 to 35% |
| Specialised (medical, childcare) | Varies; some lenders higher | Varies |
| Commercial investment (leased) | 60 to 70% | 30 to 40% |
Worth knowing: a smaller deposit is not always a dead end. Some lenders will consider higher LVRs for strong owner-occupiers or specialised assets, and you can sometimes use equity in another property (including your home) as additional security to reduce the cash you need up front. If the equity sits in a commercial property you already own, our guide to releasing equity from a commercial property covers how a refinance turns it into usable capital.
Refinancing an existing commercial loan? On the streamlined pathway, a clean loan history and a statement of position can be the whole ask, with full financials not part of it. We cover when that route fits, and the lease doc and alt doc alternatives when it does not, in our guide to refinancing a commercial property loan without full financials.
What are commercial property loan interest rates and terms in 2026?
As at July 2026, indicative owner-occupier commercial property loan rates start from around 6% p.a., with investment and SMSF loans priced higher. Rates are higher than home loans because the risk is higher, and your actual rate depends on the asset, location, LVR and your financials. Loan terms are typically shorter than a home loan, often 5 to 15 years, occasionally up to 25 to 30 for strong assets, and lenders often review the facility every one to three years. These are Everstone’s observations across its 40+ lender panel, not published rate cards.
Unlike residential lending, commercial pricing is bespoke. There is no single rate card that applies to everyone; two lenders can quote materially different rates on the same deal based on how they view the asset and your business. Variable rates are common, interest-only periods are available, and fixed options exist depending on the lender. For the broader rate picture and what it does to borrowing power, see our guide to interest rates and what they mean for buyers.
August 2026 update: the RBA held the cash rate at 4.35 per cent at its August meeting (RBA, August 2026), a decision economists read as a hawkish hold, with no cuts forecast this year and cuts a 2027 story at the earliest. The practical meaning for commercial borrowers mirrors the residential one: facility pricing is not drifting down on its own, and commercial facilities get reviewed even less often than home loans. The review-and-reprice playbook in our guide to negotiating your own rate cut applies to a business facility with equal force.
| Loan type | Indicative pricing | Why |
|---|---|---|
| Owner-occupier commercial | From ~6% p.a. | Best terms, you occupy, lower risk |
| Commercial investment | Higher again | Tenant and vacancy risk |
| SMSF commercial (LRBA) | Higher again | Added compliance, lower LVR cap |
How to compare commercial property loan rates in Australia (2026)
Commercial rates are not published on a rate card the way home loan rates are. Every quote is priced against the deal itself, so comparing rates really means comparing how different lenders would price your asset, your lease position and your financials. Three pricing tiers matter: owner-occupiers, investors and SMSF buyers.
Rates for owner occupiers
If your business occupies the premises, you sit in the cheapest tier. Indicative owner-occupier rates start from around 6% p.a. as at July 2026, with LVRs up to 80% on quality assets, across the lenders on Everstone’s panel. Lenders price the strength of your trading financials and the property together, which is why two banks can quote the same business noticeably different numbers on the same building.
Rates for commercial investors
If a tenant occupies the building rather than your business, lenders price in tenancy and vacancy risk, so investment facilities are priced higher than owner-occupier loans and LVRs are usually capped lower. The lease does much of the talking here: its length, the strength of the tenant behind it and the rent relative to market all feed into the rate you are offered.
Rates for SMSF buyers
Buying inside a self-managed super fund uses a Limited Recourse Borrowing Arrangement, and the pricing reflects the structure: fewer lenders operate in the space, LVRs are capped lower (commonly around 70% across Everstone’s panel), and rates sit higher again than standard investment lending.
We will not tell you we have the best rate, because in commercial lending nobody honestly can. What a broker does is the comparison itself: we put your deal in front of 40+ lenders and find the ones genuinely competing for your asset class right now. The same logic applies if you already own your premises and want to refinance your commercial property loan.
Refinancing is also where the paperwork story has quietly changed. Many owners assume switching a commercial loan means producing full financials all over again, yet for commercial loans under $1.5 million at least one major bank currently offers a streamlined refinance that asks for one year of clean repayment history and a self-declared statement of position instead. Offers change and criteria apply.
Our guide to refinancing a commercial property loan covers the pathway, the documents checklist and when switching pays off. For the fees involved, see our breakdown of commercial loan refinancing costs, and our commercial refinance calculator turns a rate change into monthly dollars and a break even month.
Rates get their own deep dive: our commercial property loan rates guide breaks down the 2026 ranges by borrower profile and the five levers that decide where your deal prices.
In short: there is no rate card in commercial lending; your rate is priced off the asset, who occupies it and your financials, so the comparison across lenders is the negotiation.
Owner-occupier vs investment: why it matters who stands in the building
Owner-occupier commercial loans, where your own business operates from the premises, generally come with higher LVRs, sharper rates and longer terms than investment loans on the same building. Lenders see an owner-occupier as lower risk because you are far less likely to default on the roof over your own business.
This single distinction can be worth tens of thousands in borrowing capacity and years of cheaper repayments, so it is critical your finance is structured as an owner-occupier facility from the outset. If you currently rent and intend to occupy what you buy, make sure that is front and centre of your application, it is one of the strongest cards you can play.
Factory, warehouse or office: how lenders treat each
In 2026, lenders favour industrial property, factories, warehouses and logistics units, because industrial vacancy remains historically tight, making these assets low-risk and easy to re-let. Office is funded more cautiously, with CBD office vacancy remaining elevated, so location and quality are scrutinised harder. The same business can therefore secure a higher LVR on a warehouse than on an equivalent office.
If you are buying a warehouse or factory to run your business from, you are buying into the asset class lenders most want to fund right now, which often translates into the upper end of the LVR range. If you are buying an office, the deal is still very fundable, a well-positioned office with a sound business behind it gets done every day, but you may need a slightly larger deposit, and the location and lease profile matter more. Either way, lender appetite varies sharply by precinct and even by postcode, and many lenders run internal exposure limits that are never published.
What do lenders assess on a commercial loan?
Commercial lenders assess the business as much as the property: serviceability from business cash flow (tax returns, BAS, financials), the asset itself (type, location, condition, re-sale and re-let prospects), your track record (time in business, credit history, existing debts) and the loan structure (owner-occupier, investment or SMSF).
Documentation requirements have tightened in 2026, with lenders applying stricter serviceability tests and asking for more comprehensive financials. The practical implication is that preparation wins commercial deals. A clean, well-presented application that pairs current financials and clear cash-flow evidence with the right lender for the asset is frequently the difference between an approval and a flat no on an identical set of numbers. If you also carry business term loans or overdrafts, they form part of the same assessment, see our guide to refinancing your business loans.
What the credit assessor actually looks at first. Not the rate you want: the exit. Before serviceability gets a line of attention, the assessor asks how easily the bank could sell this asset if the loan went wrong, which is why a plain warehouse in a tight industrial precinct clears faster than a smarter office in a softer one. Then the cash flow, and here owner-occupiers hold a quiet advantage: the rent your business has been paying on time for years is the repayment in a different column. We see files every week where that one line does more for the approval than the covering letter.
What are the costs beyond the deposit?
Beyond the deposit, budget for stamp duty, legal and conveyancing fees, and a valuation fee. The cost specific to commercial property is GST, commercial purchases often attract GST, though depending on how the sale is structured it may be claimable or handled under the margin scheme. This has real cash-flow implications at settlement, so involve your accountant early.
None of these costs should put you off, they are simply the difference between a back-of-envelope number and the real all-in figure. The GST treatment in particular is worth getting right before you sign a contract, because it can change how much cash you need on settlement day.
Can you buy your premises through your SMSF?
Yes. If you have a self-managed super fund, you may be able to buy your business premises inside the fund and lease it back to your own business at market rent. Your rent then builds your retirement savings instead of a landlord’s. It is done through a Limited Recourse Borrowing Arrangement (LRBA); the major banks have largely exited this space, LVRs are usually capped lower (commonly around 70% across the SMSF lenders on Everstone’s panel), and it is specialist territory.
For many business owners this is a genuinely powerful structure, but whether it suits your retirement strategy is a question for a licensed financial adviser, not a credit decision. We can arrange the lending, but the strategy advice sits with your adviser and accountant. The point worth taking away is simply that the option exists, and many business owners do not realise it. Buying commercial property through a self-managed super fund is a different structure to a standard commercial loan, see our guide to SMSF commercial property loans.
Why so few business owners use a broker for commercial, and why that’s changing
A large majority of home loans are broker-arranged, while most commercial deals still go direct. Most business owners simply walk into their own bank, which can only offer its own products at its own rates and will never tell you when a competitor is a better fit. A commercial broker compares a wide panel of lenders, major banks, regional banks, non-banks and specialists, to find the structure and pricing that actually fit your deal.
Commercial lending is far less standardised than home loans, which is precisely why the comparison work matters more, not less. Lender appetite swings by asset class, precinct and postcode, and the right specialist lender for an industrial deal in an outer-suburb corridor is rarely the bank you already use. As more business owners discover this, the commercial broker share is climbing toward residential levels. Getting in early, with the right adviser, is the advantage. For how to choose one, see our guide to the questions to ask a mortgage broker before you commit.
Everstone recently helped a not-for-profit organisation secure lending for the purchase of an owner-occupied commercial property, a deal worth $1.575 million. By searching the whole market rather than one bank, we structured the loan over a 30-year term using the property itself as security, a term length rarely available in commercial lending. That structure was specific to the client’s circumstances and will not suit every borrower, but it shows what whole-of-market comparison can surface.
Everstone Finance recently structured $1.575 million in commercial property finance for a not-for-profit over a 30-year term, a length rarely available in commercial lending, where deposits commonly run 20 to 35 percent and terms are far shorter than home loans.
How to buy your business premises: the steps
Buying your premises follows a clear path: map your borrowing capacity and the right structure, match the deal to the right lender, prepare your financials and submit, complete valuation and approval, then settle. With the right preparation, owner-occupiers are often closer to buying than they assume.
- Map your capacity and structure. Work out what you can borrow and whether owner-occupier, investment or SMSF is the right vehicle, before you start looking.
- Match the lender to the asset. The best lender for a warehouse is rarely the best for an office. Get the deal in front of lenders genuinely competing for that asset class and location.
- Prepare and submit. Pull together clean financials, tax returns and BAS, and present a strong case for the LVR and rate you want.
- Valuation and approval. The lender values the property and assesses serviceability; a well-prepared file moves fastest here.
- Settlement. Coordinate with the lender, your solicitor and your accountant (including GST treatment) to settle cleanly.
For the broader purchase journey and how pre-approval works, see our step-by-step guide to buying property in Australia.
Sources and useful references
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Compare owning to my rent, freeCommercial property loan glossary
- Commercial property loan
- Finance to buy, refinance or develop commercial real estate such as offices, warehouses, factories, shops and industrial units.
- Owner-occupier
- A borrower whose own business operates from the premises (generally occupying at least 51% of the floor space). Owner-occupiers typically access better LVRs, rates and terms.
- LVR (loan-to-value ratio)
- The loan amount as a percentage of the property’s value, based on the lender’s independent valuation. A $750,000 loan on a $1m valuation is 75% LVR.
- Serviceability
- A lender’s assessment of whether your business cash flow can comfortably cover the repayments, based on financials, tax returns and BAS.
- LRBA (Limited Recourse Borrowing Arrangement)
- The structure used to borrow inside a self-managed super fund to buy property, where the lender’s recourse is limited to the asset purchased.
- SMSF
- A self-managed super fund. A business can buy its premises inside an SMSF and lease it back to the business at market rent, subject to strict rules and advice.
- Margin scheme (GST)
- A method of calculating GST on some commercial property sales that can reduce the GST payable. Treatment depends on the transaction; confirm with your accountant.
- Interest-only
- A repayment structure where you pay only interest for a set period, preserving cash flow, before principal-and-interest repayments begin.
Commercial property loan FAQ
What is a commercial property loan?
A commercial property loan is finance used to buy, refinance or develop commercial real estate, offices, retail, factories, warehouses, industrial units and similar. Compared with a home loan, lenders assess the business behind it, require a larger deposit (usually 20 to 35%), charge higher rates and offer shorter terms.
How much deposit do I need for a commercial property loan in Australia?
Most commercial property loans require a 20 to 35% deposit, reflecting maximum LVRs of around 65 to 80%. Strong owner-occupiers buying quality industrial property can often get to 80% LVR (a 20% deposit), while investors and specialised assets usually need 30 to 40%. The LVR is based on the lender’s valuation, not your contract price.
What is the interest rate on a commercial property loan in 2026?
As at July 2026, indicative owner-occupier commercial rates start from around 6% p.a., higher than home loans, with investment and SMSF loans priced higher again. Commercial pricing is bespoke. Your actual rate depends on the asset, location, LVR and your financials, and is set deal-by-deal.
How do I get the best commercial property loan rate in Australia?
There is no single best rate to get, and no single lender is cheapest for every scenario: the lender with the sharpest rate on an industrial owner-occupier deal is rarely the sharpest on a leased office or an SMSF purchase, because each lender prices asset type, LVR and income evidence differently. The step that moves the number most is comparing lenders rather than negotiating with one bank. A commercial broker runs that comparison across 40+ lenders and puts your deal in front of the ones genuinely competing for it.
Can I buy my business premises with a commercial loan?
Yes. If your business will occupy the premises (generally at least 51% of the space), you buy as an owner-occupier and typically access higher LVRs, sharper rates and longer terms than an investor on the same property. It is often the best move a business owner can make instead of renting.
Is it cheaper to buy or rent business premises?
It depends on your deposit, the purchase price and rates, but for many owner-occupiers the repayments on a purchase can be comparable to rent, with the key difference that you build equity in an asset you own rather than your landlord’s. A broker can model both side by side for your situation.
What LVR can I get on a commercial property?
Maximum LVRs are usually 65 to 80%. Strong owner-occupiers and quality industrial assets sit at the higher end (up to 80%, occasionally more with specialist lenders), while investment and specialised properties are typically capped lower.
Do commercial property loans have shorter terms than home loans?
Usually, yes. Commercial loan terms are commonly 5 to 15 years, occasionally up to 25 to 30 for strong assets and borrowers, versus 30 years for a typical home loan. Lenders also often review commercial facilities every one to three years.
Does GST apply when buying commercial property?
Commercial property purchases often attract GST, though depending on how the sale is structured it may be claimable or handled under the margin scheme. It has real cash-flow implications at settlement, so confirm the treatment with your accountant before signing a contract.
Can I buy commercial property through my SMSF?
Yes, through a Limited Recourse Borrowing Arrangement, and you can lease your own premises back to your business at market rent. The major banks have largely exited SMSF lending, LVRs are usually capped around 70%, and whether it suits your strategy is a question for a licensed financial adviser.
What do lenders look at for a commercial loan?
Serviceability from business cash flow, the asset itself (type, location, condition), your track record and credit history, and the loan structure. Documentation requirements tightened in 2026, so clean, well-prepared financials materially improve your chances.
Can a mortgage broker help with commercial loans?
Yes. A commercial broker compares a panel of lenders, major banks, regional banks, non-banks and specialists, to match your deal to the right lender and pricing. A large majority of home loans are broker-arranged while most commercial deals still go direct, so many business owners miss this advantage.
Do I pay the broker for a commercial loan?
In most cases the lender pays the broker after settlement, at no cost to you, though some complex commercial deals can involve a fee that is always disclosed upfront in writing. Everstone Finance discusses any costs with you before you proceed.
Do I need to be in Melbourne or South Yarra to work with Everstone Finance?
No. Everstone Finance is based in South Yarra and meets locally in person, but works with business owners across Melbourne and Australia-wide by phone and Zoom.
Do I need two years of financials for a commercial property loan?
For a traditional full doc loan, most lenders want up to two years of tax returns and financial statements. Alternatives exist: lease doc loans assessed on the property’s rental income, low doc options using an accountant’s letter or BAS, and, for refinancing commercial loans under $1.5 million, at least one major bank currently runs a streamlined process that needs one year of clean repayment history and a self-declared statement of position. Offers change and criteria apply.
The bottom line: a commercial property loan turns the rent you already pay into equity in an asset you own. Owner-occupiers get the best terms, industrial is the lender favourite right now, and the deposit is often smaller than business owners assume. The single biggest mistake is doing it through one bank. In a market where pricing and appetite swing wildly between lenders, comparing the panel is where the real money is made or lost.
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