Commercial property loan · Property owners
Commercial property loan for property owners
Property owner business finance is lending where the applicant or director owns residential or commercial real estate, which widens the lender panel and lowers pricing even when the property is not offered as security.
How a commercial property loan works for property owners
Business owners who already hold residential property are often well positioned to buy the premises their business occupies, using existing equity toward the deposit. Commercial loans generally require 20–30% down, and owner-occupied facilities are assessed on the trading business rather than on market rent. Owning your premises removes lease renewal risk and converts rent into equity. Get advice on the holding structure — company, trust or self-managed super fund — before you exchange, because changing it afterwards is expensive.
The cash-flow pattern we plan around
Business cash flow assessed alongside personal property equity, which lenders treat as a buffer even where no security is taken over the property.
What property owners typically fund
- Larger facility limits than an unsecured position allows
- Lower-cost funding for expansion or acquisition
- Consolidating expensive short-term business debt
- Buying commercial premises for the business
Commercial property loan for property owners: the numbers
| Typical amounts | $250,000 – $20,000,000 |
|---|---|
| Term | 12–360 months |
| Indicative rates | 6.2% – 9.9% p.a. |
| Repayments | Monthly |
| Speed | 2–6 weeks |
| Documents property owners usually need | ABN and business financials or bank statements · Rates notice and current mortgage statements for the property · Personal asset and liability statement |
Rates are indicative, change without notice and depend on the lender, product, asset, term and your credit profile at the time of application. They are not an offer of finance. Comparison rates, where shown, are true only for the example given.
Key terms
Property-backed business lending
Property-backed business lending is finance secured by residential or commercial real estate owned by the business or its directors, offering longer terms and lower rates than unsecured lending in exchange for putting that property at risk.
Property ownership pricing benefit
The property ownership pricing benefit is the lower rate and higher limit many Australian lenders offer a director who owns real estate, applied even when no security is taken over that property.
What is a commercial property loan?
A commercial property loan is a mortgage over non-residential property such as offices, warehouses, retail or industrial units. It can be full-doc, low-doc or lease-doc depending on how servicing is assessed.
Questions from property owners
Does owning property get me a better business loan rate?
Usually, yes, even when the property is not used as security. Lenders treat a director’s property equity as a buffer, which widens the lender panel, lifts limits and lowers pricing on unsecured loans and equipment finance. Offering the property as security lowers the rate further and extends the term, at the cost of tying the property to the debt.
Should I secure a business loan against my home?
It depends on the amount, the term and your appetite for risk. A secured loan is the cheapest and longest-term business money available, which suits large, long-lived purposes such as buying premises, a business or consolidating debt. For shorter needs, an unsecured facility priced with your property in the background often costs little more and keeps the home separate.
Can I use equity in my home or investment property for the business?
Yes. An equity release or a business loan secured against residential or commercial property can fund expansion, equipment, a deposit on premises or working capital, typically up to 80 per cent of the property’s value less existing loans. Interest on the business-use portion is generally deductible. Your accountant confirms the treatment.
Can I buy my business premises instead of renting?
Yes. A commercial property loan funds an owner-occupied premises at typically 70 to 80 per cent of the value, with the business paying rent to itself or to a self-managed super fund that owns the property. Owning existing property helps with the deposit and pricing. Lyft Financial handles commercial property lending.