Commercial property loans: how they work in Australia
Premises you occupy, or lease out
A commercial property loan finances an office, shop, warehouse, factory or other business premises, whether you will occupy it or lease it out. Lenders go to 65% to 80% of the value rather than the 95% of a home loan, so expect a 20% to 35% deposit, and lend for 1 to 15 years (up to 25 for SMEs at Bank of Sydney) at rates above home loans. Owner-occupiers are assessed on trading income, investors on the lease.
Property-secured business lenders a broker can compare
Lenders in our directory that write asset or property-secured business loans. The banks and specialists that publish commercial property terms are in the lender table further down.
| Lender | Products | Current rate |
|---|---|---|
| Australia and New Zealand Banking GroupMajor bank | Products:
| Current rate: ANZ rate card (opens in a new tab) |
| Commonwealth Bank of AustraliaMajor bank | Products:
| Current rate: CommBank rate card (opens in a new tab) |
| National Australia BankMajor bank | Products:
| Current rate: NAB rate card (opens in a new tab) |
| Westpac Banking CorporationMajor bank | Products:
| Current rate: Westpac rate card (opens in a new tab) |
| BankSAMajor-bank brand | Products:
| Current rate: BankSA rate card (opens in a new tab) |
| Suncorp BankMajor-bank brand | Products:
| Current rate: Suncorp Bank rate card (opens in a new tab) |
| ING AustraliaTier-2 bank | Products:
| Current rate: ING rate card (opens in a new tab) |
| Macquarie BankTier-2 bank | Products:
| Current rate: Macquarie rate card (opens in a new tab) |
| IMB BankCustomer-owned | Products:
| Current rate: IMB rate card (opens in a new tab) |
| La Trobe FinancialNon-bank | Products:
| Current rate: La Trobe Financial rate card (opens in a new tab) |
| Liberty FinancialNon-bank | Products:
| Current rate: Liberty rate card (opens in a new tab) |
| RedZedNon-bank | Products:
| Current rate: RedZed rate card (opens in a new tab) |
Inclusion is editorial reference, not a recommendation. Rates change often, so we only show a rate we captured from the lender's own page in the last 60 days, with a link to that page; otherwise we link to the lender's rate card where it publishes one. The broker you are matched with compares the lenders on their own panel.
See all 22 business loan lenders- LVRs of 65% to 80%: Pepper Money 80% for business real property, Liberty up to 80% commercial in an SMSF, Unity Bank 70% on commercial security; specialised property lower
- Terms: ING fixed 1 to 5 years then variable, up to 5 years interest-only for investment; Bank of Sydney 1 to 15 years, up to 25 for SMEs; NAB 30 days to 15 years
- Sizes: ING publishes $500,000 to $8,000,000; the majors lend from small premises to the tens of millions
- Priced above home loans: Emu Money publishes commercial rates from about 6.05% to over 14% in April 2026, a 2% to 3% spread within one lender by risk
- Owner-occupiers are assessed on trading income, investors on the lease; an SMSF can buy business premises and lease them back to the business
WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees, or other loan amounts might result in a different comparison rate. Comparison rates are calculated on a secured loan of $150,000 over 25 years for home loans, a loan of $30,000 over 5 years for car and personal loans, and $50,000 over 5 years for equipment finance, unless the lender states another basis.
What is a commercial property loan?
A loan secured by non-residential property: offices, retail shops, warehouses and industrial units, medical suites, childcare centres, hotels and pubs, and mixed-use buildings.
ING describes its market as self-employed trading businesses looking to purchase or refinance commercial property for owner occupation or investment, and that split runs through everything: an owner-occupier services the loan from the business, an investor from the lease.
NAB publishes its commercial lending as secured and unsecured business loans and overdrafts with terms from 30 days to 15 years for all types of businesses. Because the National Credit Code does not apply to business lending, there is no comparison rate and the terms are set per deal.
How much can you borrow: LVRs and deposits
Commercial lenders lend a smaller share of the value than home loan lenders. The published ceilings sit at 80% for the safest cases, 70% for commercial security at some lenders, and lower for specialised property.
Emu Money's guide explains why the LVR matters beyond the deposit: it is the single biggest driver of commercial loan pricing, a borrower at 60% LVR pays materially less than one at 80% on the same property, and every 10% reduction in LVR typically saves 0.25% to 0.75% on the interest rate. Its arithmetic on a $1 million loan over 15 years: a 0.5% rate difference is about $45,000 of interest. That is why the deposit, or the equity in an existing property, is the first thing a commercial broker asks about.
| Property type | Typical LVR ceiling | Deposit or equity needed | Why |
|---|---|---|---|
| Standard office, retail, industrial with a strong tenant or owner-occupier | Up to 80% (Pepper Money for business real property; Liberty for SMSF commercial) | 20% plus costs | Broad resale market, predictable income |
| Commercial security at the mutuals | 70% (Unity Bank) | 30% plus costs | Lender policy on non-residential security |
| Specialised property: pubs, childcare, petrol stations, medical, aged care | Lower, often 50% to 65% | 35% to 50% | Narrow buyer pool and use-specific value (Emu Money on risk profile) |
| Vacant commercial land, development sites | Lower again; ORDE publishes 65% for commercial land | 35% or more | No income and a longer exit |
What do lenders publish on commercial property loans?
Checked against each lender's published page on 20 September 2026; "Not published" means the page does not state it. Commercial terms are negotiated per deal, so treat these as the published frame, not a quote.
| Lender | Loan size | Term and repayment type | LVR as published | Rate basis | Other published terms |
|---|---|---|---|---|---|
| ING | $500,000 to $8,000,000 | Fixed 1 to 5 years, reverting to variable; P&I, or up to 5 years interest-only for investment | Not published on the page | Fixed or variable | For self-employed trading businesses, owner-occupied or investment; extra repayments under $20,000 a year on fixed without break costs; commercial valuation rights note |
| NAB | Small start-ups to large companies | 30 days to 15 years; secured or unsecured | Not published | Published business rates: overdraft prime, bank bill pricing periods under and over 3 months | Compare-and-apply page for commercial business loans and overdrafts |
| Bank of Sydney | Not published | 1 to 15 years, or up to 25 years for SMEs | Not published | Not published | Use equity in an existing commercial property to buy or invest |
| Liberty | Not published | Not published | Up to 80% for commercial property within an SMSF | Not published | Loans serviced via lease income; purposes include growing a business, buying assets, consolidating business debt |
| Pepper Money (SMSF commercial) | Not published | Not published | Purchases up to 80% for business real property; refinances 80% | Not published | Corporate trustees; application response in 4 to 5 business days; property used wholly for business |
| Unity Bank | Not published | P&I variable to 30 years; interest-only variable to 5 years (SMSF product) | Residential security 80%; commercial security 70% | Variable | Mutual bank; SMSF and commercial loan products |
| Emu Money (broker guide) | Publishes the market view rather than a product: commercial rates from about 6.05% to above 14% in April 2026, LVR the biggest pricing driver, 0.25% to 0.75% saved per 10% of LVR, a 2% to 3% spread within one lender by profile, and property type risk from retail strips to specialised assets | ||||
How commercial loans are priced
Three bases, all above home loan rates.
Variable
Built from the lender's base rate plus a margin; Westpac publishes that a margin may apply depending on the type of security, and that variable repayments rise and fall with the rate.
Fixed
Held for a term; Westpac publishes that at the end of the period the loan automatically reverts to a variable base rate plus any margins current at the time, and ING publishes fixed terms of 1 to 5 years.
Bank bill
For larger loans, the rate resets off the bank bill swap rate for pricing periods NAB publishes as under and over three months. The business loan interest rates guide explains each and what moves them.
Emu Money's published range, from about 6.05% to above 14% in April 2026, is the spread between a low-LVR owner-occupier with clean financials and a low-doc borrower on a specialised asset; the same lender can sit 2% to 3% apart on two files.
Owner-occupier or investor?
| Feature | Owner-occupied premises | Commercial investment |
|---|---|---|
| Serviced by | The business's trading income | The lease income; Liberty publishes a loan serviced via lease income |
| Lender assesses | Two years of financials, BAS, ATO position, industry | The tenant, lease term and options, rent, vacancy risk, your financials as backup |
| Repayment type | Usually principal and interest | Often interest-only for a period; ING allows up to 5 years for investment |
| LVR | Higher within the range | Slightly lower; depends on tenant quality |
| Through super | Yes: an SMSF can buy business real property and lease it to the business at market rent | Yes, at arm's length |
Buying premises through an SMSF
The one property an SMSF can buy from, and lease back to, a related business is business real property, which makes commercial premises the classic SMSF purchase. Pepper Money publishes SMSF loans for business real property used wholly and exclusively for business purposes at a maximum 80% LVR on purchase, BOQ publishes SMSF loans for arm's length commercial investment property, and Liberty up to 80% for commercial property in an SMSF.
The loan is a limited recourse borrowing arrangement with the property held in a bare trust, and the SMSF loans guide covers the rules, the lenders and the LVRs. The business pays market rent to the fund, deductible to the business and taxed at 15% in the fund, which is the arrangement accountants recommend most often.
How a commercial broker helps
Commercial lending has no comparison rate, no published rate cards for most products, and policies that differ by property type, so the file goes to the lender whose appetite matches the asset: the majors for standard premises with strong financials, the mutuals for smaller owner-occupiers, and the specialists for low-doc, specialised or SMSF purchases.
A broker packages the financials and the valuation, negotiates the margin and the LVR, and compares fixed, variable and bank bill pricing over your holding period. The business loan broker guide covers what to ask.
What is the monthly repayment on a $1 million commercial property loan?
About $9,270 a month over 15 years at 7.5% p.a., principal and interest, or $8,711 at 6.5% p.a., before fees. On interest-only terms it is about $6,250 a month at 7.5% p.a.
Commercial property loan repayments over 15 years
| Loan amount | Monthly repayment at | |||
|---|---|---|---|---|
| 6.5%p.a. | 7.5%p.a. | 9%p.a. | 11%p.a. | |
| $500,000 | $4,356 | $4,635 | $5,071 | $5,683 |
| $1,000,000 | $8,711 | $9,270 | $10,143 | $11,366 |
| $2,000,000 | $17,422 | $18,540 | $20,285 | $22,732 |
| $3,000,000 | $26,133 | $27,810 | $30,428 | $34,098 |
Scroll the table sideways for more rates
Illustrative monthly principal and interest repayments over 15 years, before fees and charges. Rates are examples, not offers; your rate depends on the lender and your circumstances. Commercial terms run from 1 to 15 years at most lenders (up to 25 for SMEs at Bank of Sydney); rates chosen within the range Emu Money publishes. Run your own numbers.
Commercial lending guides
Rates, structures and the alternatives.
Commercial property loan FAQs
How difficult is it to get a commercial mortgage?
How much deposit do you need for a commercial property loan?
Do banks give loans for commercial property?
What is the monthly repayment on a $1 million commercial property loan?
What type of loan is best for commercial property?
Why are commercial property loan rates higher than home loans?
What is the difference between owner-occupied and investment commercial loans?
What loan sizes and terms do lenders publish?
Can I use equity in a commercial property I already own?
What documents will the lender want?
Can an SMSF buy commercial property?
Buy the premises on the right terms
Tell us the property, whether you will occupy or lease it, and your deposit or equity, and a licensed business finance broker takes the file to the lender whose policy fits the asset. Free to use, no obligation.