Commercial Property Loans: Sydney
Sydney’s commercial property market is active across all sectors right now. Industrial vacancy is near historic lows. Owner-occupiers who’ve been leasing for years are doing the numbers and buying. Investors are moving into commercial after years of residential focus, attracted by yield and long leases. And the non-bank lender market has expanded enough that deals which couldn’t get financed five years ago can now.
We arrange commercial property finance across all Sydney markets, CBD, inner-ring, Western Sydney, South Sydney, the North Shore. 20+ lenders, including specialist non-banks that don’t appear on comparison sites. Backed by the YML Group’s accounting and legal teams for structuring. Call Jay on 0425 228 882. No broker fee in most cases.
What We Finance
Office & Strata Commercial: CBD and Inner Ring
Office suites and commercial floors in Sydney CBD, North Sydney, Surry Hills, Pyrmont, Chatswood. Lender appetite for office varies by building quality, tenant covenant and location. We know who’s active where and at what LVR right now.
Retail & Strip Commercial
Lenders apply caution to retail, single tenancy, vacancy-exposed assets are harder. But well-located retail in lifestyle suburbs with good lease terms and solid tenants is fundable. The key is which lender you approach and how the application is framed.
Industrial & Warehouse
Sydney’s strongest commercial segment right now. Owner-occupiers in manufacturing, trades and logistics are buying rather than leasing. Investors are piling into strata industrial. We arrange finance for units and warehouses across Western Sydney (Parramatta, Blacktown, Penrith, Liverpool) and South Sydney (Alexandria, Botany, Mascot). LVRs are generally stronger for industrial than any other commercial type. See the dedicated Industrial & Warehouse Loans page.
Mixed-Use Properties
Ground floor retail with apartments above. Live/work studios. Commercial/residential conversions. Different lenders categorise these differently, some treat them as commercial, some as residential, some won’t touch them. We know how to position mixed-use assets to the right lenders.
Owner-Occupied Business Premises
Buying the building your business occupies changes the serviceability calculation. Lenders can use business cash flow alongside commercial yield, which often means a better LVR than pure investor assessment. Strong trading businesses regularly access terms that a straight investment purchase wouldn’t get. We know which lenders favour owner-occupiers for which property types.
The YML Group Difference
Commercial property transactions carry questions a residential deal doesn’t: Which entity holds the property, and why? Does GST apply? Does the going concern exemption apply if there’s an operating business? What’s the depreciation schedule? Is the lease document in a form the lender will accept?
YML Finance is the finance arm of the YML Group, in-house accountants, financial planners and YML Legal (NSW Law Society Practice ID 40220). Your broker and your accountant work from the same information toward the same outcome. That’s unusual in the commercial market. It makes the transaction cleaner and faster.
How Sydney Commercial Loans Are Assessed
Commercial assessment adds layers residential doesn’t have. Lenders look at the property as a security, how marketable is it, how liquid in a forced sale scenario, what does it yield? They apply higher stress buffers to serviceability than APRA requires for residential. They look at lease structure and tenant covenant. For owner-occupiers, they assess business cash flow rather than just rental yield. And they require substantially more documentation: two to three years of financials, commercial valuations from approved valuers, existing lease documents with all schedules.
Getting the application structured and documented before approaching lenders matters as much as choosing the right lender. That’s where most applications fall over, and where working with a specialist commercial broker makes the difference.
A Real Deal: Western Sydney Industrial
A manufacturing business in Western Sydney had been leasing the same unit for eleven years. The owner identified an opportunity to buy the property, appraised at $1.4 million, using a combination of business cash flow and residential equity. Three lenders declined: not enough standalone commercial serviceability. We restructured it, cross-collateralised the commercial and residential properties at the right LVR, and placed it with a non-bank lender whose owner-occupier commercial policy was built for exactly this scenario. Settled in six weeks from first call.
Representative example. Individual outcomes vary.
Common Questions
What LVR can I get for commercial property in Sydney?
60–75% for most standard commercial. Owner-occupied with strong business serviceability can reach 80% with certain lenders. Industrial generally achieves better LVRs than retail or specialised assets. We’ll give you the realistic figure for your specific property before you sign anything.
Can I use residential equity to help fund a commercial purchase?
Yes. Cross-collateralisation, using your home as additional security for the commercial loan, is a legitimate and commonly used approach where the commercial property alone doesn’t meet LVR requirements. We explain the implications clearly and structure cross-collateralised deals carefully.
How long does a Sydney commercial loan take to settle?
Four to eight weeks from a complete application. Sometimes longer for complex structures. Commercial valuations, credit assessment and legal documentation all take longer than residential. We set realistic expectations at the start and manage the process to settlement.
Can I buy commercial property in my SMSF?
Yes, and for business owners, it’s one of the most effective strategies available. You buy your premises through the SMSF, lease them back to your business at market rent, and that income is taxed at 15% inside the fund. We’ve been doing SMSF commercial for over 20 years. See the SMSF Commercial Property page.
Call Jay, 0425 228 882
YML Finance | ACL 398415 | MFAA Member 20+ Years | Sydney Commercial Finance
General information only. Not credit, tax or legal advice. YML Finance Pty Ltd ACL 398415. Commission received from lenders in most cases, see our Fees & Remuneration page.