1. How Commercial Property Loans Differ from Residential Mortgages

Commercial property finance covers retail shopfronts, industrial warehouses, commercial offices, medical suites, and mixed-use premises. Unlike standard residential mortgages governed by consumer credit law (NCCP), commercial lending is assessed based on asset quality, commercial lease covenants, and business cash flow.

2. Key Commercial Loan Parameters & LVR Limits

• Loan-to-Value Ratio (LVR): Standard commercial LVR ranges from 65% to 75% (or up to 80%–100% when supported by residential property security).
• Loan Terms: Typically structured over 15 to 25 years, often with 3 to 5 year bank review rollover terms.
• Weighted Average Lease Expiry (WALE): Lenders scrutinize lease tenure, tenant strength, and rental yield sustainability.

3. Purchasing Commercial Property via Self-Managed Super Funds (SMSF)

Business owners frequently utilize SMSF Commercial Property Loans (Limited Recourse Borrowing Arrangements - LRBA) to purchase their own business premises through superannuation, paying tax-deductible commercial lease payments directly into their retirement fund.