Commercial Investment Property Loans for Melbourne and Victoria Investors
Loans for investors buying or refinancing commercial property — office, retail, industrial, warehouse and mixed-use. Structured around lease income and serviceability, not just deposit.
Subject to lender assessment and approval. ACL 384704.
Investment Commercial — Quick Guide
- LVR — typically 60–70%
- IO terms — 1–5 years available
- Asset types — office, retail, industrial, mixed-use
- Tenant strength — lease covenant and term drive pricing
- Hold period — longer holds usually price better
- Tax — interest generally deductible — confirm with accountant
Investment Commercial Asset Types
How lenders view the most common commercial investment assets.
Office
CBD, suburban and metro office tenancies.
- Prime CBD priced tightest
- Lease term and tenant matter most
- Strata-titled offices accepted by most lenders
Retail
Strip retail, neighbourhood centres, hospitality tenancies.
- Single-tenant retail can be tougher
- Anchor / national tenant lifts pricing
- Hospitality / liquor needs specialist lender review
Industrial & Warehouse
Logistics, storage, light manufacturing.
- Strong sector with long leases
- Lot size and access matter
- Owner-occupier resale demand supports value
Mixed-Use
Shop-top dwelling, ground-floor retail with offices above.
- Each lender treats mixed-use differently
- Splitting income streams may help LVR
- Valuer’s zoning view drives outcome
Bank vs Specialist Lender for Commercial Investment
Major Bank
- Best pricing for prime assets and strong tenants
- Stricter on tenant covenant and lease term
- Slower approval, more documentation
- Lower LVR cap on tougher asset types
Specialist Commercial Lender
- More flexible on tenant covenant and asset type
- Higher LVR available for the right deal
- Faster decisions, less rigid policy
- Pricing premium vs majors — but often the only option
Documents Lenders Usually Ask For
- Lease agreement(s) for the subject property
- Last 2 years tax returns + financials for borrowing entity and guarantors
- Asset & liability position
- Existing portfolio rent rolls if applicable
- Contract of sale and Section 32 / vendor statement
- Recent commercial valuations on existing holdings
Frequently Asked Questions
How much deposit do I need for a commercial investment property?
Plan for 30–40% deposit on most commercial investment deals — i.e. LVR around 60–70%. Deposit needs vary with asset type, tenant strength and lease term. A blue-chip asset on a long lease to a strong tenant can sometimes go higher.
How does the lease affect my loan?
Lender appetite is driven heavily by lease covenant (the tenant), remaining lease term and rental review structure. A 5+ year lease to a strong tenant with CPI or fixed reviews materially improves the loan you can get.
Can I get an interest-only loan on a commercial investment?
Yes. Interest-only is common on commercial investment, typically 1–5 years and renegotiated. It’s often used to manage cash flow and align repayments to lease income.
How is commercial investment property valued?
Lenders use commercial valuers who apply income capitalisation (rent ÷ cap rate) and direct comparison. The valuer’s view of the lease, market rent and asset class drives the bankable value, which can differ from the contract price.
Adding to your commercial portfolio?
Speak with Jorden about lender appetite for the asset, the right LVR and how to structure interest-only across your commercial portfolio.