- Toongabbie NSW 2146
- Soma@brightpathfinance.com.au
CARE FEATURES
Commercial Property Finance That Understands Your Business
Commercial finance is not one-size-fits-all. Whether you’re buying a warehouse, office, retail space, or mixed-use property, you need a lender that understands your numbers and your plans. We work through rental income, lease terms, yield, and structure with you, then negotiate with banks and specialist lenders to secure commercial loans that support your next move, not hold it back.
Your dreams, funded today.
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WHAT WE DO
What We Help With
How We Work - Commercial Loan Roadmap
CORE FEATURES
Data-Driven Insights
Commercial property loans typically require:
- LVR: 60-70% (lower than residential due to risk)
- Interest Rates: 5.99% - 8.50% (0.50-1.50% above residential)
- Loan Term: 5-25 years (often interest-only for 5 years, then P&I)
- Security: Registered first mortgage over the property + sometimes personal guarantees
Yield Expectations by Sector (2024):
- Retail: 5.5% - 7.5%
- Office (CBD): 4.5% - 6.0%
- Industrial: 5.0% - 6.5%
- Medical: 5.5% - 6.5%
Key Statistics:
- Lease Quality: Long-term leases (5+ years) with strong tenants improve lending terms
- Vacancy Risk: Lenders apply cuts (typically 70-80% of rental income recognized)
- Property Type: Industrial and medical command better lending terms than retail in current market
Financing Example: $1.5M warehouse purchase, 65% LVR, 7.5% interest rate
- Loan amount: $975,000
- Interest-only repayment: $6,094/month
- Rental income: $8,000/month (gross yield 6.4%)
- Net cash flow: +$1,906/month (after interest, before tax)
WHAT WE DO
Why Choose BrightPath for Commercial Loans?
FAQ
Frequently Asked Questions
Typically 60-70%. Some lenders offer up to 80% for premium properties with strong tenants and long leases, but most cap at 70%. Owner-occupied commercial property sometimes achieves slightly higher LVRs.
Yes, typically 30-40% of purchase price. Some lenders allow equity from other properties as deposit (cross-collateralization), but we advise on risks before proceeding.
Lenders evaluate: (1) rental income and lease quality, (2) your business/investment track record, (3) property location and condition, (4) valuation and market comparables, (5) your ability to service debt from business income or rents.
Yes, via Limited Recourse Borrowing Arrangements (LRBAs). Your SMSF can purchase commercial property and lease it to your business (with strict arm's-length terms). We coordinate SMSF specialists and compliant lenders.
Vacant properties are harder to finance. Lenders may require larger deposits (40-50%) or evidence of pre-lease agreements. We work with lenders experienced in value-add and repositioning strategies.
IO is common for commercial loans (5-year terms), reducing monthly repayments and preserving cash flow for business operations. P&I builds equity faster. We model both based on your business strategy.
Application fees ($1,000-$5,000), valuation ($2,000-$10,000 depending on property), legal fees ($2,000-$5,000), ongoing facility fees ($300-$1,500/year). We disclose all costs upfront.
Yes, especially if rates have dropped or your business has grown. We review your current facility, compare the market, and refinance if it saves money or provides better terms (e.g., removing personal guarantees).