Commercial Mortgage Broker Solutions for Sydney Businesses
Buy your business premises, invest in commercial property or refinance an existing facility with finance structured around your cash flow. As a commercial mortgage broker, we match the property, the lease and your business to lenders whose commercial policy fits.
How Commercial Lending Differs
Commercial loans are assessed on the property's income and your business's cash flow as much as your personal income. Lenders look closely at the lease, the tenant and the type of property, because those determine how easily the loan is repaid and how easily the property sells.
Expect a larger deposit. Commercial lenders commonly lend up to 60% to 70% of the property's value, with some reaching 80% for strong owner-occupiers. Loan terms are often shorter than a home loan, and facilities may be reviewed annually against financial covenants.
Budget for costs beyond the price. NSW transfer duty applies at standard rates with no concessions, and GST may apply depending on how the property is sold. A leased property sold as a going concern can be GST-free when the conditions are met. As your Sydney mortgage broker, we build these into your total cash requirement.
Commercial Loan Options
The right option depends on whether you will occupy the property, lease it out or develop it:
Owner-Occupied Premises
Buy the office, warehouse, clinic or shop your business operates from. Lenders assess your business's trading figures, and buying can replace rent with repayments that build equity.
Commercial Investment Property
Buy a leased property for its income. Lenders focus on the rent, the lease term and the tenant's strength when setting the loan amount.
Commercial Refinance
Move an existing facility to a lender with better pricing, longer terms or fewer covenants, or release equity for expansion.
Commercial SMSF Loans
Buy commercial property through your self-managed super fund, including premises leased to your own business at market rent. See our commercial SMSF loans.
Construction and Development
Fund a commercial build or major upgrade in stages as work progresses. See our construction loans.
Bridging and Low Doc
Short-term finance while you sell another property, or loans on alternative documentation for business owners without up-to-date financials.
What Lenders Check Before They Approve You
Commercial approval turns on a handful of tests:
Property Type
Offices, retail and industrial property are the easiest to fund. Specialised assets such as childcare centres, hotels or service stations usually attract a lower LVR and fewer lenders.
Lease and Tenant
A long lease to an established tenant supports a larger loan. Short leases, vacancies or a single struggling tenant reduce what lenders will offer.
Interest Cover
Lenders test whether rent or business profit covers the interest with a margin to spare, commonly around one and a half to two times.
Business Financials
Two years of business tax returns and financial statements are standard for owner-occupiers, alongside personal returns for directors and guarantors.
Valuation
Commercial valuations take longer and cost more than residential ones, and they drive both the loan amount and the pricing.
How the Process Runs From First Call Onwards
Straightforward commercial loans often take three to six weeks; complex deals take longer:
Understanding the Deal
We go through the property, lease, business, structure and goals, then estimate the loan amount and equity required.
Comparing Lenders
We approach banks and specialist commercial lenders with a prepared credit submission and bring back indicative terms, pricing and covenants.
Securing Approval
We manage the valuation, credit questions and approval conditions through to a formal offer.
Coordinating Settlement
We work with your solicitor and accountant on the loan documents, guarantees and GST treatment through to settlement.
Reviewing the Facility
Ahead of annual reviews or the end of the term, we check the facility against the market and your plans.
None of this commits you to a lender, and no application is lodged until you have chosen one.
What This Costs You
Commercial loans can carry establishment fees, valuation costs, legal fees for the lender's solicitor and annual review fees. Any fee payable to us is set out in writing before you commit, and the first conversation carries no cost.
Commercial pricing is usually negotiated per deal rather than taken from a rate card, so comparing several lenders often changes the result.
Trade-Offs Worth Knowing
Costs and risks worth weighing before you commit:
Vacancy Risk
Commercial vacancies can last months or longer, and the repayments continue. Budget for a period without rent.
Shorter Terms and Reviews
A facility may need to be renewed or refinanced at the end of its term, on the terms available at that time.
Personal Guarantees
Directors are usually asked to guarantee loans to a company or trust, putting personal assets on the line.
Covenant Breaches
A fall in rent, profit or valuation can breach a covenant, even when every repayment is on time.
Why Sydney Businesses Work With Us
DIY Lending is led by Di Yin and operates as a Corporate Credit Representative of Finsure Finance & Insurance Pty Ltd, Australian Credit Licence 384704. We are a member of the Mortgage and Finance Association of Australia and the Australian Financial Complaints Authority.
We work with banks and specialist commercial lenders, and structure your commercial debt alongside your home, investment, SMSF and equipment finance, so each facility supports the others.
Our commercial mortgage broker work keeps every decision about your business's money with you.
Know Your Commercial Borrowing Position
Send us the property details, lease and your business financials. You will get an indicative loan amount, the equity required and the lenders whose policy fits.
Call 02 8806 7258 or send your details through.
Frequently Asked Questions (FAQs)
How much deposit do I need for a commercial property?
Commonly 30% to 40% plus costs, as many lenders cap commercial loans at 60% to 70% of the property's value. Strong owner-occupiers may borrow up to 80%, and equity in other property can help cover the deposit.
What is the difference between a commercial and residential loan?
Commercial loans usually need a larger deposit, may have shorter terms and annual reviews, and are assessed on the property's lease and your business's cash flow as well as personal income.
Can I buy my business premises through my SMSF?
Yes. An SMSF can buy commercial property and lease it to your business at market rent, using a limited recourse borrowing arrangement if it needs a loan.
Do I pay GST on a commercial property?
It depends on the sale. GST can apply to commercial property, but a leased property sold as a going concern can be GST-free if the conditions are met. Confirm with your accountant before exchange.
Can I get a commercial loan without full financials?
Some specialist lenders offer low doc commercial loans using BAS, bank statements or an accountant's declaration, usually at a lower LVR and higher rate.
How long does a commercial loan take to approve?
Straightforward deals often take three to six weeks. Commercial valuations, multiple entities or specialised properties can extend this.
Are commercial interest rates higher than home loan rates?
Usually, yes. Pricing depends on the property, lease, LVR and your business, and is often negotiated per deal, so comparing lenders matters.
This page contains general information only. It does not take your objectives, financial situation or needs into account, and it is not a recommendation to enter into any credit contract. Tax, GST and duty outcomes depend on your circumstances; speak with your accountant or solicitor before acting. Fees, rates and lender requirements change.