Commercial Property Loans Sydney: Buy Your Business Premises
If you run a business in Sydney and pay rent every month, owning the premises can make more sense than it first looks. We arrange commercial property loans for business owners buying the building they work from, and for investors buying tenanted commercial property. Most of our clients are self-employed and trade through companies or trusts, so structuring the loan properly is where we spend most of our time.
We’ve been arranging these loans for over 21 years across more than 20 lenders. Because we’re part of YML Group, your accountant and your broker can be in the same conversation.
Buying premises and not sure where to start?
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Get My Free Assessment →Who we help
- Medical, dental and allied health practices buying their rooms or clinic
- Trades and small manufacturers buying a warehouse or factory unit
- Retail and hospitality businesses buying their shopfront
- Professional firms buying their office
- Investors buying a tenanted shop, office or industrial unit
Property types we finance
Office and strata commercial
Office suites and commercial floors across Sydney, including the CBD, North Sydney, Surry Hills, Pyrmont and Chatswood. Lender appetite for office varies with the building’s quality, the tenant and the location.
Retail and strip commercial
Lenders are more cautious with retail, particularly single-tenancy or vacancy-exposed property. Well-located retail with good lease terms and established tenants can still be financed, and the choice of lender matters.
Industrial and warehouse
Units and warehouses across Western Sydney, including Parramatta, Blacktown, Penrith and Liverpool, and South Sydney, including Alexandria and Botany. Many owner-occupiers in manufacturing, trades and logistics are looking at buying rather than leasing. See also our industrial and warehouse loans page.
Mixed-use property
Ground floor retail with apartments above, live/work studios and conversions. Lenders categorise these differently, and some won’t lend on them at all, so the application needs to go to the right lender.
Buying in your name, a company, a trust or your SMSF
The appropriate ownership structure depends on your tax position, legal and commercial objectives and what the lender will accept. We consider the finance requirements alongside your accountant’s and solicitor’s advice before you sign a contract. Changing the purchaser or ownership structure after exchange may create legal, tax, duty, finance and contractual consequences.
In your own name
Buying in your own name may involve fewer entities, but the tax, risk, estate-planning and borrowing consequences should still be considered. Lenders generally assess your personal income and may also review the business financials where your business will occupy the property.
Through a company
Common when the trading company is buying its own premises. Lenders commonly require guarantees from the company’s directors and may request up to two years of company financial statements and tax returns. Alternative-documentation options may be available with some lenders.
Through a family or unit trust
A family, discretionary or unit trust may be considered for taxation, ownership, succession or risk-management reasons. The benefits and limitations depend on the trust deed and the parties’ circumstances. Lenders generally review the trust deed, trustee arrangements, borrowing powers and proposed guarantees.
Through your SMSF
Subject to superannuation law, the fund’s investment strategy and its governing rules, an SMSF may acquire qualifying business real property and lease it to a related business on arm’s-length commercial terms, including market rent.
If the SMSF requires finance, the borrowing must satisfy the limited recourse borrowing arrangement rules. For LRBAs entered into on or after 10 August 2026 to acquire real property, the property generally must qualify as business real property. Transitional rules may apply to existing LRBAs, qualifying refinances and acquisitions under binding contracts exchanged before that date.
SMSF commercial-property lenders commonly require a substantial fund contribution, often around 30% to 35% or more plus costs, but the amount varies according to the lender, property and fund. The SMSF must also retain sufficient liquidity and comply with its investment strategy. Specialist accounting, legal and appropriately licensed financial advice should be obtained before proceeding.
See our SMSF commercial property loans page for more, or our SMSF loans Sydney page.
What lenders look at
| What they assess | What they are looking for |
|---|---|
| Deposit | Usually 30 to 40 percent of the purchase price, depending on the property type and lender |
| Your income | Two years of tax returns and financials for you and the business, or low doc options (below) |
| The property | Type, location, zoning and condition. Specialised properties often need a bigger deposit |
| The lease | For investment property, the tenant, the lease length and the rent. For owner-occupiers, a lease from your business at market rent |
| Loan terms | Terms are often shorter than home loans and some loans have annual reviews. We explain these before you commit |
Low doc commercial loans
If your latest tax returns or financial statements are not available, or do not yet reflect the business’s current trading performance, some lenders may assess a commercial loan using alternative documentation. Depending on the lender, this may include BAS statements, business bank statements or an accountant’s declaration.
Alternative-documentation loans commonly require a larger contribution and may carry a higher interest rate or additional fees compared with a full-documentation loan. Eligibility and terms depend on the borrower, property and lender assessment.
Using the equity in your home
Some clients use available equity in residential property to help fund the commercial-property deposit and purchasing costs. Where possible and commercially appropriate, we consider separate loan accounts and security structures. However, the final arrangement depends on the lender, available equity and overall application.
Using your home as security for commercial or business borrowing creates additional risk. You should understand the security and guarantee arrangements and obtain appropriate legal advice before proceeding.
How it works with us
- A free first conversation about the property, your business and what you’re trying to achieve.
- Your accountant and solicitor advise you on the appropriate ownership structure. We assess how the proposed structure affects lender selection, loan terms, security and the application process.
- We compare lenders and show you the options side by side.
- We handle the application, valuation and lender questions.
- We stay involved through to settlement and afterwards.
Illustrative example: physiotherapy clinic in Parramatta
A physiotherapist who had leased her clinic for eight years was offered the opportunity to purchase the premises. She wanted to explore purchasing through a family trust, with the practice company leasing the property from the trust on commercial terms.
In this illustrative scenario, the latest tax return was not available, so an alternative-documentation commercial loan was considered using recent BAS information, business bank statements and supporting information from the accountant. Part of the required contribution was to be sourced using available equity in residential property.
The proposed ownership structure, lease, taxation consequences and security arrangements would need to be reviewed separately by the client’s accountant and solicitor.
Illustrative example only. It does not describe a particular client or guarantee that finance will be available. Lending options, required contributions, rates and outcomes depend on the applicant, property, documentation, security and lender assessment.
Frequently Asked Questions
How much deposit do I need to buy commercial property?
Most lenders want 30 to 40 percent of the purchase price plus costs. Some lenders go further for strong owner-occupiers, and specialised properties often need more.
Can my SMSF buy my business premises?
An SMSF may be able to acquire qualifying business real property and lease it to a related business on arm’s-length commercial terms. If the SMSF borrows to complete the purchase, the borrowing must comply with the LRBA rules.
For relevant LRBAs entered into on or after 10 August 2026, the real property generally must qualify as business real property. Specialist accounting, legal and appropriately licensed financial advice should be obtained before proceeding, and the transaction will be subject to independent SMSF audit.
Can I get a commercial loan if my tax returns aren’t up to date?
Possibly. Some lenders offer alternative-documentation commercial loans where the latest tax returns or financial statements are unavailable or do not yet reflect the business’s current trading performance. Depending on the lender, supporting information may include BAS statements, business bank statements or an accountant’s declaration.
An accountant’s declaration is only available where the accountant is professionally able and willing to provide it. Alternative-documentation loans may require a larger contribution and may carry higher rates, additional fees or different loan conditions. Eligibility remains subject to lender assessment.
Are commercial loan rates higher than home loan rates?
Usually, yes. The rate depends on the property, the lease, your financials and how much you borrow against the value.
Did the 2026 negative gearing changes affect commercial property?
The new negative-gearing restrictions apply to residential property investments and not to commercial property. Established residential properties held at 7:30 pm AEST on 12 May 2026 are generally grandfathered, while eligible new builds continue to qualify under the new rules. The tax treatment of a commercial-property loss still depends on the taxpayer, ownership entity and applicable tax rules.
See our article on what changed and what didn’t.
How long does a Sydney commercial loan take to settle?
Often four to eight weeks from a complete application, and sometimes longer for complex structures. Commercial valuations, credit assessment and legal documentation usually take longer than for a home loan.
Call Jay directly, 0425 228 882
Sydney and Byron Bay clients welcome | Acctpro Finance Pty Ltd | ACL 398415 | MFAA Member
Important information: This page contains general information only. It does not take into account your objectives, financial situation or needs and is not legal, taxation, accounting, financial or superannuation advice. Before selecting an ownership structure or entering into a transaction, obtain advice from appropriately qualified professionals.
Credit criteria, interest rates, fees, valuation requirements, security requirements and loan terms vary between lenders and may change. Approval is not guaranteed and all applications are subject to lender assessment.
Acctpro Finance Pty Ltd trading as YML Finance | Australian Credit Licence 398415 | MFAA Member. View our Credit Guide for information about our services, remuneration and complaints process.
Remuneration disclosure: In the majority of cases, YML Finance receives a commission from the lender when a loan settles. In specialist cases where lender commission is not available, a fee-for-service arrangement may apply, disclosed in writing before any work begins. See our Fees & Remuneration page. We act in accordance with the Best Interests Duty. Complaints: Lodge a complaint or contact AFCA on 1800 931 678.