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Commercial property lending, in numbers
What deposit do you need for a commercial property loan?
Standard commercial lending runs at 65–80% LVR, a 20–35% deposit. For an owner-occupier with trading history and property behind them, the structured number is different. All of it below: sourced, dated, workings shown. The lending itself, owner-occupier and investment, is set out on commercial property loans.
Subject to lender criteria, security position and eligibility. Figures on this page reviewed quarterly, last reviewed August 2026. Next review: November 2026.
30 minutes with Priyank, at no cost. We review your position and discuss how we will approach funding your deal. No lender sees anything until you say so.
On this page
The numbers
What commercial lending costs to enter, as published.
| Measure | Published market guidance | As at |
|---|---|---|
| Standard commercial LVR | 65–80% of the property value | Jul 2026 |
| Typical deposit | 20–35% of the purchase price | Jul 2026 |
| Owner-occupier commercial rates | from ~6% p.a. | Jul 2026 |
| Secured business lending rates | ~7.5–9% p.a. (banks); non-bank above | Jul 2026 |
| Prevail structured transactions | Up to 100%; on 8 out of 10, 95% or above | Aug 2026 |
Drawn from published Australian industry guidance and Reserve Bank-derived market data; reviewed quarterly. The LVR and rate achieved on any transaction depend on lender criteria, your security position and eligibility.
The workings
A $1,000,000 premises. Three structures.
| Structure on a $1,000,000 commercial property | Deposit required |
|---|---|
| Standard commercial, 65% LVR | $350,000 |
| Standard commercial, 80% LVR | $200,000 |
| Owner-occupier, structured at 95% | $50,000 |
Between $150,000 and $300,000 that stays in the business instead of the deposit.
Deposit only. Excludes stamp duty (varies by state; nil on qualifying commercial property in South Australia), legal, valuation, application and due diligence costs. The structured figure assumes an established trading business and acceptable additional security. Subject to lender criteria, security position and eligibility. See the full cost of getting in.
Rates in 2026
The rate follows the structure. Not the other way round.
What moves your rate down
Real property security, clean trading financials, sensible LVR, an entity structure the credit desk can read in one pass, and a file that answers the assessor’s questions before they are asked. Owner-occupiers start from published rates of around 6% p.a. (as at July 2026). Where you land inside the band is the structure’s doing.
What moves it up
Thin security, unclear servicing, specialised assets, tight timelines that force non-bank or private pricing, roughly 7.5–9% p.a. at banks on secured business lending and higher beyond them, as published mid-2026. Sometimes paying more for speed is the right trade. It should be a decision, not a surprise.
Rates are published market figures, date-stamped and reviewed quarterly, not offers. Your pricing depends on lender criteria, security position and eligibility.
The South Australia advantage
One state charges no stamp duty on commercial property.
South Australia abolished stamp duty on qualifying commercial property (non-residential, non-primary-production) from 1 July 2018. On the eastern seaboard the same purchase carries a five-figure duty bill; in Adelaide it carries none.
For an owner-occupier or SMSF buying premises, that difference lands entirely in the entry cost, often the gap between a purchase that works now and one that waits another year. It is one reason Adelaide sits inside our core service area alongside Melbourne, Geelong, Hobart and Launceston.
Two pathways
Buying as the operator. Or buying through your fund.
Owner-occupier, directly
Your trading history carries the file, the rent you pay your landlord becomes the loan repayment on your own asset, and the deposit is a structuring outcome rather than a fixed toll. The rent-versus-own decision is examined here.
Through your SMSF
Your fund buys the premises; your business pays market rent to your own retirement savings. Lending sits under a limited recourse arrangement: up to 80% LVR is achievable against business real property, subject to fund liquidity, lender criteria and eligibility, and whether it suits you belongs with your accountant and licensed adviser. The SMSF pathway is set out here.
The three routes
Bank, non-bank or private credit, which route fits the deal?
Each route trades price against speed and flexibility. The right one depends on what the deal needs most, and sometimes the answer is staying exactly where you are.
| Route | Typical LVR | Speed to approval | Pricing | Suited to |
|---|---|---|---|---|
| Major & regional banks | 65–80% | Typically several weeks | Lowest, owner-occupier rates from ~6% p.a. (Jul 2026) | Strong financials, clean security and time to run a full process |
| Non-bank lenders | Up to ~80%, asset-dependent | Days to weeks | Above bank | Near-bank deals that miss one policy test, servicing story, property type or timing |
| Private & structured credit | Deal-by-deal, security-driven | Can move in days | Priced for speed and flexibility, above non-bank | Deadline-driven purchases, short-term bridges and complex structures |
Typical characteristics as at August 2026, general in nature; every lender applies its own criteria to every deal. Which route fits, and whether moving is worth it at all, is exactly what the Action Plan works out. Subject to lender criteria, security position and eligibility.
Next step
Price the structure before you price the property.
Priyank calls you within four business hours. Seven minutes: the asset, your trading position, what sits behind you, and whether a 95%-plus structure is realistic. Then 30 minutes with Priyank at no cost, and within 24 hours a straight answer: fundable, not fundable, or what’s missing. Accept our quote, and the written Action Plan follows within one business day.
30 minutes with Priyank, at no cost. We review your position and discuss how we will approach funding your deal. No lender sees anything until you say so.
Straight answers
Fair questions.
What LVR do lenders offer on commercial property in Australia?
Published guidance as at July 2026 puts standard commercial lending at 65–80% LVR, a 20–35% deposit. Owner-occupiers with trading history and property security can structure materially higher: on 8 out of 10 Prevail Finance transactions, clients settle at 95% or above. Subject to lender criteria, security position and eligibility.
What are commercial property loan rates in 2026?
Owner-occupier commercial rates are published from around 6% p.a. as at July 2026, with secured business lending at roughly 7.5–9% p.a. and non-bank options above that. Rate follows the security package and file quality more than the lender’s brochure. The structure you present decides which pricing tier you are quoted.
Which Australian state has no stamp duty on commercial property?
South Australia. Stamp duty on qualifying commercial (non-residential, non-primary-production) property transfers was fully abolished from 1 July 2018 (RevenueSA). On a typical purchase that saves tens of thousands of dollars against the eastern states, which is one reason Adelaide features in owner-occupier and SMSF purchase strategies.
Can I use equity in my home as the deposit for a commercial property?
Yes, and it is the most common path, around half of Australian small business credit is secured by residential property, per Reserve Bank data. Equity can be released as a separate facility or the property offered as additional security. The two routes price and behave differently, which is a structuring decision worth making deliberately.
Is the deposit lower if my business occupies the property?
Often, yes. Owner-occupier lending is assessed on your trading history as well as the asset, and lenders generally treat it more favourably than investment exposure. With the business’s financials supporting the debt and property security in the package, the deposit can fall dramatically. Subject to lender criteria, security position and eligibility.
What deposit does an SMSF need for commercial property?
SMSF loans sit under a limited recourse borrowing arrangement, and up to 80% LVR is achievable against business real property, so allow a 20% deposit from the fund plus costs and a liquidity buffer, subject to fund liquidity, lender criteria and eligibility. Whether an SMSF purchase suits you belongs with your accountant and licensed adviser. We arrange the credit alongside them.
Should I use a bank, a non-bank or a private lender for commercial property?
For commercial property in Australia, it depends what the deal needs most. Banks price lowest but move slowest and apply the strictest policy; non-banks fund near-bank deals that miss one policy test; private credit buys speed and flexibility at a higher cost. The right route is deal-specific, subject to lender criteria, security position and eligibility.
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