Commercial Loans
Buying or refinancing commercial property involves different rules from residential lending. We help you through them.
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Commercial property finance, clearly explained
Commercial property loans are assessed differently from home loans. Lenders look closely at the property itself, the lease arrangements and the strength of the business or borrower behind the application. Two properties at the same price can be viewed very differently depending on their type, location and how easily they could be leased or sold.
Whether you are buying premises for your own business or as an investment, we help you understand how a lender is likely to see the proposal before you commit to a purchase.
Owner-occupied or investment
If your business will operate from the property, the lender's attention turns to the business: its trading history, financial statements and ability to meet repayments. If the property will be leased to a tenant, the length of the lease and the strength of the tenant become central. Either way, deposit requirements, loan terms and pricing vary widely between lenders and between property types.
What to allow for
Commercial loans often need a larger deposit than a home loan and may run for shorter terms, with the lender reviewing the facility from time to time. Beyond the purchase price, allow for valuation, legal and due diligence costs, and check with your accountant how GST applies to the purchase. Decisions about who should own the property, such as a company or a trust, are best made with your accountant and solicitor before the contract is signed.
We compare suitable lenders, explain the differences and help you prepare a clear application, including any lease or financial information the lender will want to see.
How a MAXLEND broker helps
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Lender policy explained
We explain how different lenders are likely to assess your property and proposal.
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Matched to the property
Lenders favour different property types. We look for those suited to yours.
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A complete application
We help you assemble the financial, lease and property information lenders expect.
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One point of contact
We manage valuation, approval and settlement with the lender on your behalf.
How commercial lending works
A clear process from first conversation to settlement, with a MAXLEND broker beside you at each step.
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Discuss the property and purpose
We look at the property type, the intended use and any lease in place.
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Assess your position
We review financials, the deposit or equity available and the security offered.
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Compare lenders
We identify lenders suited to the property and the proposal.
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Apply and settle
We manage valuation, approval and settlement with the lender.
How commercial lending differs
Commercial loans are assessed differently from home loans. Lenders usually ask for a larger deposit, offer shorter loan terms and price each loan individually. For an investment property, the length and terms of the lease and the strength of the tenant matter a great deal.
Purchases of commercial property can attract GST and other costs. Please confirm the tax and legal position with your accountant and solicitor before you commit.
Documents you may be asked for
- Financial statements and tax returns for the business or borrower
- The contract of sale and any lease agreements
- A statement of your assets and liabilities
- Details of the entity that will own the property
- Identification for directors, trustees or guarantors
General information only. A broker can explain how it applies to your circumstances.
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Commercial Loans: common questions
See all questionsHow much deposit do I need for a commercial property?
It varies by lender, property type and the strength of the application, and is generally higher than for a home. We can give you an indication once we know the property and your position.
Can I buy commercial property in a company or trust name?
Yes, commercial property is often held by a company or trust. Lenders will assess the entity and usually ask the people behind it for guarantees. Your accountant can advise on the most suitable structure.
Can I use the equity in my home to help buy business premises?
Some borrowers do. It may improve the terms available, but it also puts your home at risk if the loan is not repaid, so it deserves careful thought and independent advice.
Can you help with business and commercial loans as well as home loans?
Yes. As well as residential lending, we help with business loans, commercial property loans and equipment finance.
What will a lender want to see for a business loan?
This varies with the type and size of the loan, but lenders commonly ask for business financial statements, tax returns, business activity statements and details of existing debts. We will let you know what applies to your application.
What lenders look at with commercial property
Commercial lending is assessed property by property. These are the areas a lender will focus on.
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The property itself
Type, location, condition and how easily it could be leased or sold all influence how a lender views the loan.
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The lease
For a tenanted property, the length of the lease and the strength of the tenant matter. For your own premises, the focus shifts to your business.
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Deposit and loan term
Commercial loans often need a larger deposit and can run for shorter terms than home loans, with periodic reviews by the lender.
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Costs beyond the price
Allow for valuation, legal and due diligence costs, and check how GST applies to the purchase with your accountant.
Ready to talk about commercial loans?
Book a time with a MAXLEND broker. There is no obligation.