Commercial loans in South West Sydney
Buying a warehouse, shop or office in South West Sydney? We'll match your commercial loan to a lender that understands the property.
Buying commercial property? The lender matters as much as the building.
Commercial property is a different game from residential. Lenders look at the lease, the tenant, the location and your business - and every lender weighs those things differently.
At Infinity Mortgage Brokers, we help business owners and investors across Bankstown and South West Sydney find commercial finance that fits the property and the plan behind it.
How do commercial loans work?
A commercial loan is assessed on the property's income and the strength of your business, not a standard home loan calculator. Here's what we'll work through with you:
- How much deposit you'll need - usually more than for a home
- Loan terms, review dates and any ongoing conditions
- Interest-only vs principal & interest repayments
- Whether you're buying to occupy or to lease out
- How the lease and tenant affect the lender's view
- Fees to compare beyond the interest rate
We'll compare lenders with an appetite for your type of property and explain each offer in plain English.
Why is commercial lending more complex?
Because no two properties are alike. A standard industrial unit in Milperra or Padstow is viewed very differently from a specialised site or a vacant shop.
Terms are shorter, conditions are tighter, and the fine print matters more. Getting advice before you sign a contract can save you from an expensive surprise.
How Infinity Mortgage Brokers can help
We help South West Sydney buyers approach commercial lending with a clear plan. Here's what you get with us:
- An upfront view of what lenders are likely to offer
- A comparison across banks and non-bank lenders
- Help preparing the financials and lease details lenders want
- A plain-English walk-through of terms and conditions
- Coordination with your accountant and solicitor
We'll make sure you understand exactly what you're signing up for.
Found the right premises?
Let's chat! Schedule a free introductory call with us now.
How does a commercial loan differ from a home loan?
A commercial loan differs from a home loan because it is judged on the property's income and the strength of your business, not on a standard household calculator. It also needs more equity, costs more and runs for a shorter term.
What the lender examines
The lender examines the lease, how long it has left, the quality of the tenant and the net rent. It also asks how readily the property could be leased again if it fell vacant.
How the terms compare
Home loans commonly run for 30 years. Commercial terms are shorter, often around 15 years, and many facilities include review dates that allow the lender to reassess.
Less regulation
Business purpose lending falls outside the National Credit Code. You have fewer consumer protections, and lenders have more room to tailor the deal.
Lender choice counts for more
Appetite differs sharply by property type and location. A lender that is keen on an industrial unit in Milperra may have no interest in a shop or a specialised asset.
Getting matched
Infinity Mortgage Brokers matches the property to the lender for South West Sydney buyers before they commit. Book a free chat to talk through your purchase.
How much deposit is needed for commercial property in South West Sydney?
Commercial property in South West Sydney commonly needs a deposit of around 30% of the price, and more for specialised property. That compares with the 5% to 20% most home buyers plan for.
Favoured by lenders
Standard industrial units and warehouses are viewed most favourably. The region has a deep supply through Milperra, Padstow and Moorebank.
Middle of the range
Retail and office space in established centres such as Bankstown, Campsie and Fairfield sits in the middle.
Tighter lending
Specialised property attracts tighter lending, because fewer buyers exist if the lender has to sell. Examples are service stations, childcare centres, pubs and purpose built medical premises. Vacant premises are also treated more cautiously than a property leased to a solid tenant.
Using other equity
Many buyers lower the cash they need by offering equity in a home as extra security. It works, but it ties your home to the business purchase.
Weighing it up
Infinity Mortgage Brokers explains the consequences before you choose. Our guide on how to access the equity in your home covers the mechanics.
What terms, reviews and covenants come with a commercial loan?
A commercial loan usually comes with a shorter term than a home loan, the option of interest only repayments early on, and scheduled reviews. It can also carry covenants you must keep meeting.
Reviews
At a review the lender may request current financial statements, an updated valuation or confirmation that the tenant and lease are unchanged.
Covenants
These are conditions that apply for the life of the loan. Typical examples are a minimum interest cover ratio, a maximum loan to value ratio, yearly financial reporting and limits on other debt. A breach can lead to a higher rate or a request to pay the loan down, even when no repayment has been missed.
Fees
Most commercial facilities carry a line fee, a review fee or both. Compare the total annual cost, because the loan with the lowest rate is not always the cheapest.
Reading the fine print
Infinity Mortgage Brokers goes through the covenants with Bankstown business owners before signing. We point out any that ordinary ups and downs in trading could breach. Book a free chat before you accept an offer.
Can my business buy its own premises with a commercial loan?
Yes, your business can buy its own premises with a commercial loan. Lenders often prefer owner occupied purchases, because repayments come from a business they can assess directly instead of an outside tenant.
Evidence required
Lenders ask for business financial statements, a current ATO account, and proof that the business can carry the loan along with its other commitments. The rent you pay now is usually added back, since it stops once you own the building.
Who should own the property
Owners of factory units and workshops around Padstow, Kingsgrove and Villawood commonly hold the property in a trust or a self managed super fund. The trading business then pays rent as tenant. The lease must be on arm's length commercial terms, and the structure has to be right from day one.
Take advice first
Ownership decisions affect income tax, land tax and succession for years, so involve your accountant early. Buying through super also needs advice from a licensed financial adviser.
How we help
Infinity Mortgage Brokers in Bankstown works with your accountant on the structure. If you plan to buy a home as well, see our self employed home loans service.
