Commercial Property Investment Loans in Australia — The Complete 2026 Guide

Commercial property investment loans are the backbone of Australian commercial real estate. From the suburban medical centre to the CBD office tower, nearly every income-producing commercial asset in Australia is funded — at least in part — by a commercial mortgage. Yet the lending market is far less standardised than residential: there is no carded rate, no single application form, and no government guarantee. Every transaction is individually structured, priced, and placed.

What Makes Commercial Investment Lending Different

Commercial property lending is fundamentally different from residential mortgage lending in four ways:

Asset-based assessment. The primary credit lens is the property's income stream — tenant quality, lease expiry profile (WALE), current and market rent, vacancy risk — not the borrower's PAYG income. A strong asset with a government tenant on a 10-year lease will attract better terms than a weaker asset with a strong borrower.
Bespoke pricing. There is no standard variable rate. Every facility is priced transactionally based on asset quality, LVR, borrower covenant, and market conditions. Indicative margins range from BBSY + 1.50% for prime institutional assets to BBSY + 3.50% for secondary assets with shorter WALEs.
Structural flexibility. Commercial facilities accommodate interest-only terms (typically 3–5 years), fixed or floating rate periods, equity-release mechanisms, and multi-asset cross-collateralisation — features rarely available in residential lending.
Lender diversity. Major banks, mid-tier banks, non-bank lenders, credit funds, and mortgage funds all compete for commercial investment loans — but each has distinct asset-class preferences and credit criteria. A broker with whole-of-market access can match the asset to the optimal lender.

Commercial Investment Loan Types

Standard Commercial Mortgage

Senior debt secured by a first mortgage over an income-producing commercial property. LVR: 60–70%. Term: 3–5 years interest-only typical, though amortising terms are available. Pricing: BBSY + 1.50%–3.00%. Suitable for: stabilised office, industrial, and retail assets with strong tenant covenants.

Portfolio Facilities

Multi-asset facilities cross-collateralising two or more commercial properties. Portfolio facilities unlock equity across the entire portfolio and are typically more capital-efficient than individual loans. LVR: weighted average across portfolio, typically 60–70%. Suited to HNW investors and family offices with diversified commercial property holdings.

SMSF Limited Recourse Borrowing (LRBA)

Loans to SMSF trustees for acquiring commercial property through a bare trust structure. LRBA loans are strictly limited recourse — the lender's security is confined to the acquired asset. LVR: typically 60–70%. Suited to: SMSFs acquiring commercial property for their own business premises or as an investment.

Value-Add and Vacant Possession

Funding for properties requiring capex, re-leasing, or repositioning. Lenders accommodate lease-up periods and capex drawdowns. Pricing: BBSY + 2.50%–4.50%. LVR: 55–65% on as-is valuation, with potential to increase on stabilisation.

Asset Classes and Lender Appetite

Lender appetite varies significantly by asset class. Understanding these dynamics is critical to structuring a successful facility:

Industrial and logistics: Strongest lender appetite — long WALEs, structural tailwinds from e-commerce, low capex. 65–70% LVR common. All lender types active.
Office: Bifurcated market. Premium-grade CBD with government or ASX-listed tenants: strong appetite, 65–70% LVR. Secondary and suburban office: reduced appetite, 55–65% LVR, pricing premium.
Retail: Highly asset-specific. Neighbourhood centres anchored by supermarkets: strong appetite. Suburban strips and discretionary retail: constrained appetite, lower LVRs.
Healthcare: Growing lender appetite — medical centres, day hospitals, specialist clinics. 60–70% LVR from specialist healthcare lenders. Strong demographic tailwinds support lender confidence.
Childcare: Established centres with strong occupancy and long lease terms attract 60–70% LVR from specialist lenders. New developments or start-up operators face tighter criteria.

How Evcorp Structures Commercial Investment Loans

Evcorp Commercial's approach to investment lending mirrors the discipline of an institutional credit floor. Each mandate begins with a detailed assessment of the asset, the income stream, and the borrower's objectives — then runs a competitive process across the full lender panel. The result is a facility that achieves the optimal combination of pricing, leverage, and structural flexibility.

With access to 60+ lenders — banks, non-banks, credit funds, and mortgage funds — Evcorp ensures every transaction is matched to the right capital source. The firm handles the full process from indicative terms to settlement, managing valuation, legal, and credit approval on the borrower's behalf.

Frequently Asked Questions

What is a commercial property investment loan?

A commercial property investment loan is a mortgage used to purchase or refinance an income-producing commercial property — such as an office building, retail centre, industrial warehouse, or healthcare facility. Unlike a residential investment loan, commercial loans are assessed primarily on the property's income stream (lease profile, tenant quality, WALE) rather than the borrower's personal income. Loan sizes typically start at $3 million and can exceed $500 million for institutional-grade assets.

What LVR is available for commercial property investment loans in Australia?

Senior commercial investment loans typically offer 60–70% LVR depending on asset class, lease profile, tenant quality, and location. Industrial and logistics assets with long WALEs often achieve the strongest LVRs (65–70%). Office and retail vary widely based on tenant covenant — a government-tenanted office may achieve 70%, while a suburban retail strip with mixed tenants may be capped at 60%. Non-bank and private credit lenders may stretch to 75% LVR at a pricing premium.

Can I get a commercial property loan through an SMSF?

Yes. SMSF (Self-Managed Super Fund) commercial property loans are structured as Limited Recourse Borrowing Arrangements (LRBAs). The SMSF trustee acquires the property through a bare trust, with the loan secured only against that specific asset (limited recourse). LRBA lenders typically require 30–40% deposit and prefer standard commercial assets (office, industrial, retail) with strong lease covenants. Evcorp arranges SMSF commercial property loans through specialist LRBA lenders.

What types of commercial property can Evcorp finance?

Evcorp arranges investment finance for: office buildings (CBD, fringe, suburban), industrial and logistics assets (warehouses, distribution centres, manufacturing), retail (shopping centres, bulky goods, retail strips), healthcare (medical centres, day hospitals, specialist clinics), aged care and retirement living, childcare centres, hotels and accommodation, specialised assets (data centres, cold storage, education), and mixed-use properties. Whole-of-market access ensures the right lender for each asset class.

How are commercial property loan interest rates determined?

Commercial investment loan pricing is determined by: (1) the underlying benchmark rate (BBSY/bill rate for floating, swap rate for fixed); (2) a credit margin reflecting asset quality, tenant covenant, LVR, and borrower strength (typically 1.50%–3.50% above benchmark for senior facilities); (3) line fees and establishment costs. Pricing is negotiated transaction by transaction — there is no 'carded rate' as with residential mortgages. Evcorp's competitive multi-lender process ensures market-competitive pricing.

What are commercial property loan rates in Australia?

Commercial property loans are priced at a margin over the bank bill swap rate (BBSY). The margin depends on the asset class, tenant covenant, lease profile, LVR and the sponsor. Evcorp publishes indicative senior margins from major lenders daily on its homepage. Construction facilities are typically priced at BBSY plus 2.00–5.50%; well-leased investment property attracts lower margins than development risk.

How much deposit do I need to buy a commercial property?

Because senior lenders typically lend 60–70% of value on commercial property, a buyer generally needs 30–40% of the purchase price as equity plus transaction costs. Investment-grade assets with strong tenants sit at the higher end of the LVR range; value-add or vacant-possession assets require more equity.

How long is a commercial property loan term?

Commercial investment facilities are commonly written for 3–5 years, often interest-only for the term with a rollover or refinance at maturity. Construction facilities run 12–24 months and land bank facilities up to 24 months. Evcorp tests facilities against the market 6–12 months before maturity so rollover is never done under time pressure.

How long does it take to get a commercial property loan approved?

Indicative terms from best-fit lenders are typically available within 48 hours of a complete brief. Formal approval and settlement usually take 3–6 weeks depending on valuation, lease review and lender conditions. On tight purchase contracts Evcorp secures conditional approval before the contract goes unconditional.