Commercial property loan · Renovation and fit-out finance
Commercial property loan for Renovation and fit-out finance
Renovation and fit-out finance is funding for the works that make a commercial premises usable — joinery, services, flooring, signage and equipment — spread across the lease term rather than paid from working capital.
How a commercial property loan works for Renovation and fit-out finance
Where you own the premises, the calculation changes entirely. Renovation works to a building you own add to its value and can often be folded into the property facility or funded by a top-up against the improved valuation, at property rates rather than commercial fit-out rates. That is materially cheaper and runs over a much longer term. It requires a valuation and takes longer to arrange, so start the conversation well before the builder is due on site.
The cash-flow pattern we plan around
A single large capital outlay before the refurbished premises trade, with disruption during the works and revenue benefits arriving over the following months.
What renovation and fit-out finance typically fund
- Shop, clinic or office fit-out on a new tenancy
- Refurbishing existing premises to lift trade
- Compliance, accessibility and services upgrades
- Signage, joinery and lighting
- Equipment installed as part of the works
Commercial property loan for Renovation and fit-out finance: 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 renovation and fit-out finance usually need | Signed lease with term and option details · Builder or shopfitter quote and scope of works · 6–12 months of bank statements or business financials |
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
Fit-out finance
Fit-out finance is lending for the non-removable works and fixtures that make a commercial tenancy operational, repaid over a term matched to the lease because the works have no resale value if the premises are vacated.
Lease term alignment
Lease term alignment is the practice of setting the finance term no longer than the remaining lease including exercisable options, so a business never pays for a fit-out in premises it has left.
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 renovation and fit-out finance
How does fit-out finance work?
The lender pays the builder and suppliers in stages against invoices as the works progress, and the loan converts to a fixed term of three to five years when the fit-out is complete, usually kept within the lease term. Movable equipment is often financed separately at a sharper rate and combined under one application.
Can I fund a renovation while the business stays open?
Yes. Fit-out finance funds staged works, and a line of credit or a short unsecured loan with a repayment holiday covers reduced trade during the works. Lenders like renovations that add capacity or lift revenue, so include the plan and the expected uplift.
Should the fit-out loan term match my lease?
Yes. Lenders usually want the fit-out repaid within the current lease term including options, and a term that ends before the lease does keeps you flexible. Negotiate the lease before the finance so the terms line up, and tell your broker the lease details when applying.
Can I renovate premises I own?
Yes. Renovations to an owned commercial property can be funded by increasing the commercial property loan, which is the cheapest route, or by a fit-out facility if you prefer to keep the property loan separate. Works that lift the property’s value support a higher loan.