Investment Property Finance in Australia: A Guide for HNW Investors in 2026

This guide covers how investment property finance actually works in Australia in 2026 — how commercial lending differs from a home loan, what happens when a bank's serviceability calculator says no, and how LVR varies by asset class.

Why Investment Property Finance Is Different From a Home Loan

A residential home loan is assessed primarily on the borrower's personal income and living expenses. A commercial investment loan is assessed primarily on the asset itself — its income stream, tenant quality, and lease expiry profile (WALE) — with the borrower's overall financial position considered alongside, not instead of, the asset. This is why an investor can be declined for a further residential loan on serviceability grounds while the same investor's commercial portfolio remains readily financeable: the two loan types are underwritten on almost entirely different criteria.

Bank vs Non-Bank: Where APRA Serviceability Gets in the Way

APRA's serviceability guidance shapes how major banks assess every borrower's capacity to service debt — including existing commitments, buffer rates, and living expense benchmarks. Investors who hold several properties often hit this ceiling well before they run out of equity or borrowing appetite: the numbers on paper say no, even though the underlying assets are performing well.

Non-bank lenders and private credit funds are not bound by the same serviceability framework. They assess income-producing commercial assets primarily on the property's own cash flow, which opens a lending pathway that simply doesn't exist within the major banks once an investor's personal servicing capacity is exhausted. Evcorp's whole-of-market access exists precisely for this scenario — matching APRA-constrained investors to lenders who assess the deal on the asset, not the borrower's payslip.

Investment Loan Types

Standard Commercial Mortgage

Senior debt secured by a first mortgage over a stabilised, income-producing commercial property. Typically 3–5 year interest-only terms, with LVR in the 60–70% range for well-leased assets.

Portfolio Facilities

Rather than financing each property individually, a portfolio facility cross-collateralises multiple assets under one loan, releasing equity across the whole portfolio and typically achieving a more capital-efficient outcome than a series of standalone loans.

SMSF Lending

Self-managed super funds can borrow to acquire commercial property through a limited recourse borrowing arrangement, with the lender's security confined strictly to the acquired asset. This is a common structure for investors buying their own business premises inside their SMSF.

Value-Add and Vacant Possession

For assets requiring capex, re-leasing or repositioning before they stabilise, specialist lenders will fund against the as-is valuation with capacity to increase once the asset is leased and performing.

LVR by Asset Class

Lender appetite — and therefore achievable LVR — varies materially by asset class:

• Industrial and logistics: strongest appetite, given long WALEs and low capex requirements.
• Office: bifurcated — premium CBD assets with strong covenants attract solid terms; secondary and suburban office is more constrained.
• Retail: highly asset-specific — supermarket-anchored neighbourhood centres perform well; discretionary retail is more conservatively priced.
• Healthcare and childcare: growing lender appetite for established, well-occupied assets with long lease terms.

See Evcorp's Commercial Property Investment Loans knowledge page for a full breakdown of LVR and pricing by asset class.

Refinancing an Investment Portfolio

Testing an existing portfolio against the full lender panel every 6–12 months routinely surfaces better pricing, higher leverage, or trapped equity that can be released into the next acquisition. Sometimes the best outcome is at the existing bank; often it isn't — the only way to know is to run the process.

Frequently Asked Questions

What is investment property finance in Australia?

Investment property finance covers commercial mortgages and lending facilities used to acquire or refinance income-producing property — office, industrial, retail and healthcare assets — for high net worth investors and portfolio holders. Unlike a residential home loan, commercial investment loans are assessed primarily on the property's income stream and lease profile rather than the borrower's personal income. Evcorp arranges investment property finance from $3M+ across bank and non-bank lenders.

Can I get an investment property loan if a bank says no?

Yes. Investors who have hit APRA-driven serviceability constraints with major banks — a common outcome once several properties are held — can access non-bank lenders and private credit funds that assess income-producing assets on the property's cash flow rather than the investor's personal serviceability. Evcorp's whole-of-market access identifies these alternatives when a major bank's servicing calculator says no.

What LVR can I get on a commercial investment property?

Commercial investment loans in Australia typically range from 60–70% LVR, varying by asset class, tenant covenant and lease expiry profile (WALE). Industrial and logistics assets attract the strongest LVRs given long WALEs and low capex; secondary office and discretionary retail attract more conservative terms. Evcorp's whole-of-market access matches each asset to the lender most likely to stretch leverage for that specific class.

What is the difference between a commercial property loan and a home loan?

A home loan is assessed on the borrower's personal income under consumer credit rules. A commercial property loan is assessed primarily on the asset — its rental income, tenant covenant and lease profile — and the borrowing entity, which is often a company, trust or SMSF. Commercial loans have lower LVRs (60–70% versus 80–95%), shorter terms (3–5 years), margin-over-BBSY pricing and are not covered by the National Credit Code.