Steps to Financing a Commercial Property
Buying a commercial property is a big step—whether you’re an investor looking to expand your portfolio or a business owner wanting to own your premises. But financing a commercial purchase is a little different from getting a standard home loan.
In this beginner’s guide, we’ll break down the basics of commercial property finance and what you need to know before applying.
What is a Commercial Property Loan?
A commercial property loan is finance used to purchase a property that is primarily for business purposes—such as an office space, retail shop, warehouse, or even specialised premises like medical suites.
Unlike residential loans, commercial loans often have different lending criteria, higher deposit requirements, and varying loan terms.
How Commercial Loans Work
Here are some key differences compared to residential loans:
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Deposit requirements: Typically 20–30% of the property value (higher than the usual 5–10% for homes).
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Interest rates: Often slightly higher than residential loans.
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Loan terms: Can be shorter, usually 15–25 years.
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Assessment: Lenders look closely at the business’s financial health, cash flow, and the property’s income potential.
Steps to Financing a Commercial Property
1. Clarify Your Goals
Are you buying to run your own business, or as an investment? Your purpose will influence the type of loan you need.
2. Get Your Financials in Order
Lenders will want to see financial statements, tax returns, business activity statements, and forecasts. The stronger your financial position, the better your chances.
3. Explore Loan Options
Common types of commercial finance include:
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Standard commercial property loan – for office, retail, or industrial spaces.
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Lease doc loans – assessed based on rental income from the property.
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Low doc loans – available with limited financials (but often at higher rates).
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SMSF commercial property loans – for those using superannuation funds to invest.
4. Compare Lenders
Not all lenders treat commercial property the same way. Banks, second-tier lenders, and specialist lenders all have different criteria. This is where working with a broker can open up more options.
5. Plan for Extra Costs
Think about stamp duty, valuation fees, legal fees, and potential fit-out or upgrade costs.
Why Work With a Broker for Commercial Property Finance?
Financing commercial property can be complex. Every lender has different appetite for risk and unique requirements. As brokers, we:
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Compare multiple lenders (not just one bank).
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Structure your loan to suit your business or investment goals.
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Save you time by managing the paperwork and negotiations.
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Help present your application in the best light to improve approval chances.
Final Thoughts
Purchasing a commercial property can be a smart move for growth and investment—but the finance side requires planning and strategy.
At Your Finance Broker, we help business owners and investors across the Sunshine Coast and beyond find the right commercial finance solution.
📩 Ready to explore your options? Contact us today to discuss your commercial lending needs.