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Max LVR up to 80%

Use for income-producing properties

Low doc and lease doc loan options available

Loan term up to 30 years.

What is a Commercial Property Loan

A Commercial Property Loan, also known as a Commercial Real Estate Loan, is a simple way to borrow money for buying a commercial property.

Commercial property finance involves obtaining loans for the acquisition, development, and improvement of various commercial real estate assets, including shops, offices, warehouses, and factories. This financing can be utilized to either build and develop properties for eventual sale or to acquire them with the intention of leasing them out.

The intention for which you seek the loan can impact the qualification process, as lenders categorise loans into low, medium, or high risk based on their designated use. For instance:

  • Commercial property investments aimed at leasing are considered low risk.
  • Acquiring the property for your business operations is seen as a medium-risk endeavour.
  • Using the funds for day-to-day operations and addressing liquidity shortfalls is regarded as high risk.

Critical information sheet

Our loan guide

Commercial Property Loan

Loan amount

Starts from $100k

Interest rates from

From 10.99% p.a.

Loan term

No Doc: Up to 3 years | Lease Doc/Full Doc: Up to 30 years with up to 5 years Interest only option

Pre-approval time

24 – 48 hours

Unconditional approval & settlement time

10-15 Business days

Repayments

Principal & Interest | Interest Only & | Capitalised Interest

Security

Required with funding possibilities up to 80% Loan to Value Ratio (LVR)

What you need to know

Can be used for

To purchase a commercial property

Refinance into a lease doc loan

Documents required

Valid identification proof

Security Details

Exit Strategy

Others depending upon loan product

*The information provided in critical information sheet is intended as a guide only. Please contact us for more information.

What you should know about commercial property loans

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What types of commercial property loans are available?

Traditional Commercial Mortgage: A standard loan for purchasing or refinancing commercial real estate.

Commercial Bridge Loans: Short-term loans used to bridge the gap between immediate financing needs and long-term funding.

Commercial Construction Loans: Loans used to finance the construction or renovation of commercial properties.

Private Lenders Loans: Short-term loans provided by private lenders, typically at higher interest rates, based on the value of the property.

Pros and Cons of commercial property loan

Pros

Investment opportunities: Allow businesses to invest in real estate, providing opportunities to generate income through rent and potential property appreciation.

Long-term financing: This loan comes with longer terms than other types of business loans

Cons

Higher Deposit: Commercial property loans typically require a substantial down payment.

Higher Interest Rates: Commercial Property loans often come with higher interest rates compared to residential property loans, although some lenders offer comparable rates.

Key Factors to consider while applying for a commercial property loan

Risk and Interest Rates:

Commercial properties are seen as riskier investments, so lenders charge higher interest rates and have stricter rules for commercial loans. However, the interest costs can be claimed as a business expense and in case of leased properties can be set off against lease income.

Application Process:

When you apply for a loan for a business property, lenders not only look at your financial situation but also consider the property itself, including its potential income, location, and demand in the market.

Costs and Valuations:

Getting a commercial property valued is more expensive, and you might have to pay for it yourself. In contrast, lenders usually cover valuations for homes valued under $2,500,000.

Regulation Differences:

Unlike home loans, commercial loans aren't as regulated. This means you won't have the same protections, and the rules are different.

Insurance and Loan Terms:

There's no Lender's Mortgage Insurance (LMI) for commercial loans, so you'll likely need a bigger upfront deposit. Commercial loans also have shorter terms compared to home loans.

Pricing and Serviceability:

Pricing for commercial loans varies a lot, depending on factors like the type of business and its location. Lenders also use a different method to make sure you can afford the loan.

Costs and Reviews:

Commercial lending is generally more expensive, with higher interest rates and fees, especially if your business is considered risky. The bank will also review your finances regularly even after you get the loan.

Security Agreement:

You might have to provide a General Security Agreement for both the property and your business assets unless the income from the property is high enough to cover the loan.

Understanding these aspects are crucial because commercial lending is more complex than getting a loan for a home.

Full doc vs low doc

Full-doc loan

  • Requires Financials, tax returns, lease agreements, ATO Portals, BAS Statements etc.
  • Comparatively cheaper and longer term as compared to a no doc/low doc loan option.
  • Approvals may take longer as compared to a no doc/low doc loan option.
  • While this option demands more upfront effort, it gives a greater confidence for lenders due to detailed documentation which in turn provides customers with a more competitive interest rate.

No Doc/Low-doc loan

  • No financial statements or tax returns are required.
  • This gives businesses with tight profit margins more choices and flexibility, usually offered by non-bank 2nd tier / private lenders.
  • Comparatively expensive and shorter term as compared to a no doc/low doc loan option.
  • The application and approval process is usually quicker as compared to a full doc application.

What’s considered a Commercial Property?

Properties that are considered commercial typically fall into various categories, and these include:

Properties intended for retail businesses, such as stores and shopping centres.

Properties used for manufacturing or storage purposes, including factories and warehouses.

Properties associated with the hospitality industry, including hotels, motels, clubs, childcare centres, and petrol stations.

Properties used for medical purposes, such as clinics, hospitals, or medical offices.

Properties that combine different types of usage, such as a building with both residential and commercial spaces.

Properties related to agriculture, including farm buildings or structures used for agricultural purposes.

These categories encompass a wide range of commercial properties, each serving a specific purpose or industry. The distinction between commercial and residential properties is primarily based on the property's use and intended function.

How do I apply for a commercial property loan?

1. Submit Application

First step is to simply fill out the application form with the required information and loan request.

2. Get Indicative Quote

Once the application is received, our lending specialist would get an indicative quote within 24-48 hours.

3. Letter of Offer (LOO)

Once we receive the mandate to proceed basis indicative quote, we get a formal letter of offer from the lender.

4. Valuation and Legal Docs

On receipt of signed LOO, the lender would initiate valuation and get loan docs prepared.

5. Disbursement

Once we receive the mandate to proceed basis indicative quote, we get a formal letter of offer from the lender.

Commercial vs Residential property loan

Commercial loans are not the same as home loans, and they have some important differences. Here are some key differences in a snapshot.

Start loan application

Commercial Property Loan

For business entities to purchase a property for business use

Usually up to 80%, though this varies from lender to lenders depending on the nature/product

Generally higher than residential property loans

No Doc: Up to 3 years | Lease Doc/Full Doc: Up to 30 years

Residential Property Loan

Made for individual borrower to purchase a residential property as a primary place of residence or for investment purposes.

Usually up to 95% with the inclusion of lender's mortgage insurance.

Generally lower than commercial property loans

Up to 40 years

why-choose3

Why should you choose Broc Finance?

Tailor made options

Being a small business owner, many of our clients are not sure of right loan product for their businesses. Our lending specialists understand their needs and recommend tailor made options.

Personal Consultation

Unlike business loan marketplace websites which use AI based algorithms to match your requirements, we provide obligation free personal consultation as every business is different and an AI based algorithm may not provide them the optimum solution.

personal-consultation

Competitive Pricing

We endeavour to achieve the optimum business loan solution for our clients at the most competitive pricing possible.

Clear communication

We understand the essence of time so don’t believe in wasting our customers time by giving false hopes. Transparent and clear communication is in our DNA.

Real results with real people.

99+ customer reviews

5.0

Aktaruzzaman Rasel

Aktaruzzaman Rasel

Thank you Neeraj Indraghanti and his team. Really apricated you help to getting the loan when we needed. We had an amazing experience with this company. We are so pleased with the service received from Neeraj. He went above and beyond to help us get out of the situation. The loan process was easy and hassle free. Looking forward to use your service in future too.
Tabitha Pomente

Tabitha Pomente

Working with Saroj and the Bronc Finance team has been an incredible experience. Their professionalism, knowledge, and support throughout the process have been outstanding. I couldn’t be happier with the service and results — highly recommended!
Don Hett

Don Hett

⭐️⭐️⭐️⭐️⭐️ Highly Recommend Saroj from Broc Finance! Saroj was incredibly helpful from start to finish. He listened to all my requirements, understood my situation, and got me the funding I needed super fast. I really appreciate how efficient and responsive he was throughout the whole process. If you’re looking for someone who actually cares and gets the job done without delays, Saroj is your guy. I highly recommend him for anyone needing funding support. A big thanks to Saroj and the team at Broc Finance for their great work. Wishing you all the best!
Mugdha Chandekar

Mugdha Chandekar

A Trusted Partner in Commercial Finance I had the pleasure to discuss with Broc Finance on a complex commercial mortgage transaction, and I can confidently say they are the experts and professinals in this space. If you're looking for a commercial mortgage broker who brings clarity, integrity, and genuine commitment to the table, Broc Finance is the one to call. Highly recommended for any business owner seeking tailored financial solutions.
Yogendra Jayadeva

Yogendra Jayadeva

Partnering with Broc Finance (and Saroj) has been a fantastic experience—seamless support, quick turnaround, and successful outcomes for even the trickiest business loan scenarios. Highly recommend them for reliable and efficient Business lending solutions!
Deepesh Parikh

Deepesh Parikh

Saroj knows his business. To the point guidance, everything from start to finish was as expected and confirmed by him. Always recommend him for sorting it your personal or business finances. Thanks a lot for all your help Saroj.
Daniel Butel

Daniel Butel

Saroj and the team are great, they are open and transparent with advice. Truly are advocates for your business and help to cut through the finance jargon that’s hard for business owners and operators to decipher
Zoltan Matrof

Zoltan Matrof

I wanted to express my sincere gratitude for your outstanding support in helping me secure finance. Your professionalism, clear communication, and dedication made the entire process smooth and stress-free. I truly appreciate your expertise and commitment—thank you for going above and beyond to assist me! World Gym Busselton

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Frequently asked questions

Commercial property loans are typically accessible to both businesses and investors aiming to buy or refinance commercial properties. Contrary to a common misconception, these loans are not exclusive to businesses alone; individuals can also apply for and use commercial loans to acquire commercial properties.

You may be asked to enter into a General Security Agreement (GSA) when applying for a commercial real estate loan. A GSA is a legal document that grants the lender the right to secure the borrower's assets if they default on the loan. These assets can include commercial properties, vehicles, business assets, and others. In case of default, the lender can seize the assets listed in the GSA to recover the loan amount. In some cases, the beneficial owner might need to use their primary residence as security in the GSA to gain approval for a commercial property loan.

Yes, refinancing options are available to lower interest rates, reduce monthly payments, or access equity in the property. The process involves applying for a new loan to pay off the existing one.

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