Commercial property finance through Lyft Financial.

Yes. Interest-only periods of one to five years are common on commercial property loans, particularly for investors who want to maximise cash flow and deductions, and some lenders will extend them on review. During the interest-only period you pay only the interest, so repayments are lower but the principal does not reduce. Owner-occupiers usually move to principal-and-interest so the debt is paid down over the term. Lenders assess an interest-only loan on the higher principal-and-interest repayment that follows, so the business or lease income still needs to support it.

An owner-occupied commercial loan finances premises your own business will trade from, and lenders assess it largely on the strength of that business. An investment commercial loan finances a property leased to someone else, and lenders assess it on the lease income, the tenant and the lease term remaining. Owner-occupied loans often allow higher borrowing and can be structured through the trading entity, while investment loans lean on the quality of the lease. Both can include a residential-security top-up where more borrowing is needed.

Commercial property rates are usually a little higher than home loan rates and vary with the lender, the property type, the loan-to-value ratio and how the loan is documented. Full-doc loans with strong financials and a standard property attract the sharpest pricing; low-doc or lease-doc loans and specialised assets are priced higher. Loans can be fixed, variable or split, and interest-only periods are common for investors. Lyft Financial compares bank and non-bank lenders so you see the rate, fees and repayment side by side before you commit.

For a full-doc loan lenders typically ask for two years of business financials and tax returns, recent BAS, the contract of sale, any lease on the property, identification and details of your entity structure. Investors also provide the lease and rental history. Low-doc and lease-doc options reduce this to an accountant’s letter or the lease alone. Because commercial lenders look closely at the property itself, a valuation, the zoning and any environmental or heritage issues are also reviewed.

We are a finance broker. We compare suitable options from our lender panel and help you through the process. We explain any broker fee and how we are paid before you proceed. The lender assesses and decides the application.

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.

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.

A lease-doc loan is assessed on the rental income from a commercial lease rather than on the borrower’s full financial statements. Lenders check that the rent covers the interest by an agreed margin and that the lease term, tenant and property are sound. It suits investors whose tax returns do not reflect their position, or who want a faster approval, and it usually comes with a lower maximum loan-to-value ratio and a slightly higher rate than a full-doc loan.

Often, yes. GST of 10 per cent generally applies to the sale of commercial property unless it is sold as a going concern with an existing lease in place, or the seller is not registered for GST. If you are registered, you can usually claim the GST back on your next BAS, but you need to fund it at settlement, and most lenders will not lend against the GST component. Stamp duty is calculated on the GST-inclusive price in most states. Confirm the treatment with your accountant before exchange, because it changes the deposit you need.

Yes. A self-managed super fund can borrow to buy commercial property using a limited recourse borrowing arrangement, and the property can be leased to your own business at market rent, which many owner-operators use to buy their premises inside super. Lenders generally finance up to about 65 to 75 per cent of the value, require the fund to hold a cash buffer, and expect the trust structure to be set up correctly before settlement. Advice from your accountant or financial adviser is required, and Lyft Financial works alongside them.