Deposits, terms, lease strength and valuations. How commercial lending differs from a home loan.
Anthony Nocon
Founder and Mortgage Broker, Financeo
Published
30 September 2026
Last revised
11 November 2026
Reading time
7 min read
TL;DRIn a nutshell
✓Bigger deposit: lenders usually lend 60% to 70% of the value.
✓Shorter terms: often 15 to 25 years, sometimes with periodic reviews.
✓The lease matters: tenant quality and lease length affect your rate and approval.
✓Valuations: commercial valuations take longer and cost more.
Home loan vs commercial loan
Commercial property is assessed on its income and the strength of the lease, as well as your own finances.
How they compare (typical)
Home loan
Commercial loan
Maximum LVR
Up to 95%
60% to 70%
Loan term
Up to 30 years
15 to 25 years
Assessment
Your income
Rent, lease and your income
Rate
Lower
Higher, priced to risk
Why the lease matters
A long lease with a strong tenant makes the property more valuable to a lender. A vacant building or short lease usually means a lower LVR and a higher rate.
Lender appetite by lease strength
Hardest
Moderate
Strongest
VacantShort leaseLong lease, strong tenant
Buying for your own business
If your business will occupy the property, lenders look at the business's financials to see that it can afford the rent or repayments.
"Commercial deals are won or lost on how they're presented to the lender. A clear story about the property, the lease and your exit makes approval much smoother."
Anthony Nocon, Financeo
The process, step by step
From enquiry to settlement
1
Scope the deal
Property, lease, entity and goals.
2
Indicative terms
Lenders give pricing and LVR.
3
Valuation
A commercial valuer assesses the property.
4
Formal approval and settlement
Documents signed and funds released.
Quick self-check
Tick what applies to you. It's a rough guide, not an assessment.
Tick the boxes above to see where you stand.
Frequently asked questions
Yes, through a limited recourse borrowing arrangement. Business owners often buy their premises this way.
This article is general information only and doesn't take your circumstances into account. Lending rules, rates and thresholds change, so check current details or speak with us before acting.
About the author
Anthony Nocon
Founder and Director of Financeo. More than a decade in lending, including commercial, business, property and private banking roles at Commonwealth Bank.
Deposits, terms, lease strength and valuations. How commercial lending differs from a home loan.
Anthony Nocon
Founder and Mortgage Broker, Financeo
Published
30 September 2026
Last revised
11 November 2026
Reading time
7 min read
TL;DRIn a nutshell
✓Bigger deposit: lenders usually lend 60% to 70% of the value.
✓Shorter terms: often 15 to 25 years, sometimes with periodic reviews.
✓The lease matters: tenant quality and lease length affect your rate and approval.
✓Valuations: commercial valuations take longer and cost more.
Home loan vs commercial loan
Commercial property is assessed on its income and the strength of the lease, as well as your own finances.
How they compare (typical)
Home loan
Commercial loan
Maximum LVR
Up to 95%
60% to 70%
Loan term
Up to 30 years
15 to 25 years
Assessment
Your income
Rent, lease and your income
Rate
Lower
Higher, priced to risk
Why the lease matters
A long lease with a strong tenant makes the property more valuable to a lender. A vacant building or short lease usually means a lower LVR and a higher rate.
Lender appetite by lease strength
Hardest
Moderate
Strongest
VacantShort leaseLong lease, strong tenant
Buying for your own business
If your business will occupy the property, lenders look at the business's financials to see that it can afford the rent or repayments.
"Commercial deals are won or lost on how they're presented to the lender. A clear story about the property, the lease and your exit makes approval much smoother."
Anthony Nocon, Financeo
The process, step by step
From enquiry to settlement
1
Scope the deal
Property, lease, entity and goals.
2
Indicative terms
Lenders give pricing and LVR.
3
Valuation
A commercial valuer assesses the property.
4
Formal approval and settlement
Documents signed and funds released.
Quick self-check
Tick what applies to you. It's a rough guide, not an assessment.
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Frequently asked questions
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This article is general information only and doesn't take your circumstances into account. {{ discText }}
About the author
Anthony Nocon
Founder and Director of Financeo. More than a decade in lending, including commercial, business, property and private banking roles at Commonwealth Bank.
