Commercial Property Loans in Melbourne 2026: Rates, LVR and How to Qualify
Buying a shop, office, warehouse or industrial unit is a different game from buying a home. Commercial property loans have their own rules - lower loan-to-value ratios, higher rates, and lenders who care as much about the tenant and the lease as they do about you. Whether you're an owner-occupier securing your own premises or an investor chasing yield, this guide explains how commercial lending works in Melbourne in 2026 and how to qualify for the best deal.
Dahiya Mortgage & Finance is an independent brokerage based in Lyndhurst, Victoria (Australian Credit Licence #388570). We arrange commercial finance across Melbourne's south-east and beyond, comparing banks and specialist non-bank lenders to find the right structure for your property.
What Is a Commercial Property Loan?
A commercial property loan finances the purchase (or refinance) of property used for business rather than living. That covers two broad situations:
Owner-occupier - you're buying premises to run your own business from (turning rent you pay a landlord into equity you own).
Investment - you're buying a commercial property to lease to a tenant for rental income and capital growth.
Property types include retail shops, offices, warehouses, factories, industrial units, mixed-use buildings and development sites. Each is assessed differently, and lender appetite varies widely between them.
How Much Can You Borrow? LVR and Deposit
Commercial lending is more conservative than home lending. As a general guide in the current market:
Standard commercial (retail, office): typically up to around 70-75% of value - a 25-30% deposit.
Industrial / warehouse: often up to around 80%.
Specialised or higher-risk property (e.g. hospitality, rural, single-tenant): lower again.
Owner-occupiers with strong financials can sometimes access higher LVRs than investors. On top of the deposit, budget for stamp duty, legal and conveyancing fees, and a commercial valuation (which is more detailed - and pricier - than a residential one).
Rates and Fees
Commercial property loans are priced higher than residential home loans - they carry more risk and less standardised security. The rate you're offered depends on the property type, the strength and length of any lease, your financial position, the loan size and the structure. Because pricing varies so much between lenders, comparing the market is where a broker earns their keep: the difference between a bank's shelf rate and a negotiated commercial rate can be significant over the life of the loan.
Full-Doc, Low-Doc and Lease-Doc
How you prove serviceability shapes which lenders you can access:
Full-doc - complete financials (tax returns, BAS, financial statements). The sharpest rates.
Low-doc - for self-employed borrowers, income verified via BAS or an accountant's declaration rather than full tax returns.
Lease-doc - the loan is assessed mainly on the rental income from a signed commercial lease, not your personal income. Ideal for investment properties with a strong, long-term tenant.
Buying Commercial Property Through an SMSF
One of the most powerful strategies for business owners: your self-managed super fund can buy commercial premises under a Limited Recourse Borrowing Arrangement and lease them back to your own business at market rent. The rent flows into your super (building retirement savings), the business gets a secure tenancy, and it can be highly tax-effective. Residential property can't be used this way - only commercial. We cover the rules in detail in our SMSF property loans guide.
What Lenders Assess
The property - type, location, condition, and how easily it could be re-leased or sold.
The lease - for investments, the tenant's strength, rent, and remaining term are critical.
Your financials - business performance, existing debts, and serviceability.
The structure - personal name, company, trust, or SMSF, each with different lender and tax implications.
The Process
1. Strategy & structure - we work out the right ownership structure with you (and your accountant).
2. Pre-assessment - we test your scenario across commercial lenders to gauge borrowing power and likely rates.
3. Application & valuation - lodge with the best-fit lender; the lender orders a commercial valuation.
4. Approval & settlement - commercial deals typically take longer than residential, so we manage the timeline closely.
Common Mistakes to Avoid
Assuming home-loan rules apply. LVRs are lower and rates higher - plan your deposit accordingly.
Going straight to your own bank. One bank's commercial appetite is narrow; the market is where the deal is.
Ignoring the lease. For investments, a weak or short lease can sink an approval that your financials alone would pass.
Getting the structure wrong. Buying in the wrong entity can cost you tax and flexibility later - decide before you sign.
Frequently Asked Questions
How much deposit do I need?
Usually 25-30% for standard commercial (up to ~80% LVR for industrial), plus stamp duty, legal and valuation costs.
Are commercial rates higher than home loans?
Yes - they carry more risk. The exact rate depends on property type, lease, financials and structure, so comparing lenders matters.
What is a lease-doc loan?
A loan assessed mainly on the rental income from a signed commercial lease rather than your personal income.
Can I buy commercial property through my SMSF?
Yes, under an LRBA - and you can lease it to your own business at market rent, which is tax-effective.
Talk to a Commercial Finance Specialist
Every commercial deal is different - the right structure and lender can save you tens of thousands. Book a free consultation with our Lyndhurst team and we'll assess your purchase across the commercial market. Call (03) 9005 4079, or visit our commercial loans page.