Commercial Property Refinance in Sydney: Why Now Is the Time to Review Your Loan

Commercial property owners across Sydney are entering another period of interest-rate uncertainty.

Recent lender pricing shows fixed rates beginning to move higher. At the same time, inflation remains above the Reserve Bank of Australia’s target range, business expenses remain elevated and the direction of future RBA decisions is uncertain.

Australian inflation was 3.5% in the year to July 2026, with housing costs increasing by 5.0%. The RBA left the cash rate at 4.35% in August 2026, following three increases earlier in the year, and warned that it could increase rates again if inflation risks materialise.

For small-business owners with a commercial property loan—particularly those currently financed through a private lender or specialist non-bank—this is a sensible time to review the facility rather than waiting until the expiry date is approaching.

Did private finance help you solve a short-term problem?

Private and non-bank funding can play an important role for business owners.

It may have helped you:

• Settle a commercial-property purchase quickly

• Buy a factory, warehouse, office or retail premises

• Complete a time-sensitive transaction

• Obtain finance without up-to-date business financials

• Work through a credit issue

• Consolidate ATO or business debt

• Access working capital

• Complete renovations or property improvements

• Refinance when a mainstream bank could not move quickly enough

That funding may have been the right solution at the time. But short-term finance should generally have a clear exit strategy.

If your one-year or two-year private facility is approaching maturity, the circumstances that led you to the private lender may have changed. You may now have 12 or 24 months of clean repayment history, improved business performance and a stronger commercial property position.

That creates a potential opportunity to refinance into a more competitive commercial property loan.

Repayment history can change the conversation

Traditional commercial lending often requires tax returns, business financial statements, management accounts and evidence of income.

However, some commercial property refinance pathways may place greater emphasis on the conduct of the existing loan. Depending on the lender, loan structure, property, loan-to-value ratio and proposed cash-out amount, an application may not require the usual volume of business financials, tax returns or income documents.

A strong application may instead be supported by:

• Twelve months of satisfactory loan statements

• Evidence that repayments have been made on time

• A clear explanation of the original finance

• An acceptable commercial property valuation

• Clean or acceptable credit conduct

• A sensible loan-to-value ratio

• A demonstrated exit from short-term private funding

• Identification and entity documents

• Limited supporting business information, where required

This does not mean “no assessment” or guaranteed approval. Every application remains subject to the lender’s credit policy, valuation, security requirements and overall assessment.

It does mean that self-employed borrowers should not automatically assume they are trapped with an expensive private or non-bank facility simply because their latest financial statements do not tell the complete story.

Who is the ideal commercial refinance client?

This type of refinance is particularly worth exploring when the borrower:

1. Is self-employed

The applicant may operate an established small business, but their taxable income or most recent financial statements may not reflect its current position.

Business performance is rarely perfectly linear. A growing business can experience periods of investment, contract delays, equipment purchases, restructuring or unusually high expenses.

An experienced commercial finance broker should understand the story behind the numbers.

2. Holds the property in a company or trust

Many commercial properties are owned through a company, family trust, unit trust or corporate trustee.

The ownership structure does not necessarily prevent refinancing, but it needs to be matched with a lender comfortable with the borrowing and security entities involved.

3. Has at least 12 months of good repayment history

Consistent, on-time repayments can be one of the strongest parts of a refinance application.

They demonstrate that the borrower has managed the existing commitment, even if the original loan was arranged through a specialist or private lender.

4. Currently has private or non-bank finance

Private funding is generally designed to solve a particular problem or provide short-term flexibility. It is not always intended to remain in place indefinitely.

Once the borrower has established satisfactory conduct, there may be an opportunity to refinance to a mainstream commercial lender—or potentially a major bank—at a materially lower interest rate and cost.

The available rate will depend on the property, loan amount, LVR, borrower, lease position, credit profile and lender assessment.

5. Requires some additional cash out

A refinance can also be an opportunity to request additional funds for a legitimate business purpose, such as:

• Working capital

• Purchasing equipment or vehicles

• Property improvements

• Funding a new contract

• Consolidating business debts

• Paying an eligible ATO liability

• Supporting expansion

• Creating a cash buffer

Cash out must be clearly explained and remains subject to lender policy, valuation and serviceability requirements.

Why review the loan before the term expires?

Leaving a commercial refinance until the final weeks of a private facility can reduce your available options.

A commercial property refinance may require:

• Collection and review of the existing loan statements

• Company and trust documents

• A commercial valuation

• Credit assessment

• Legal review

• Preparation of mortgage documents

• Coordination of the incoming and outgoing lenders

Starting early provides time to compare lenders properly, address any issues and avoid being forced into an expensive extension simply because the existing loan is approaching maturity.

It also allows the broker to consider whether a bank, specialist commercial lender or alternative low-documentation solution is most appropriate.

The potential benefit can be significant

The difference between private funding and a more competitive commercial property loan can amount to thousands—or tens of thousands—of dollars each year.

For example, a reduction of just 1% p.a. on an $800,000 commercial loan represents approximately $8,000 a year in interest, before allowing for fees, repayments or changes to the loan balance.

The lowest advertised rate is not automatically the best solution. Establishment fees, valuation costs, legal expenses, discharge fees, loan term, repayment structure and flexibility must also be considered.

The objective is to find a facility that is competitive, sustainable and appropriate for the next stage of the business.

Commercial property refinancing across Southwest Sydney

Fetch My Home Loan assists self-employed borrowers and commercial-property owners throughout Sydney, with a particular focus on Milperra and the surrounding business communities.

This includes businesses and property owners in:

• Milperra

• Bankstown

• Revesby

• Panania

• Padstow

• Padstow Heights

• East Hills

• Picnic Point

• Condell Park

• Georges Hall

• Bass Hill

• Yagoona

• Chipping Norton

• Moorebank

• Liverpool

• Lansvale

• Villawood

• Greenacre

• Punchbowl

• Riverwood

These areas contain a large number of factories, warehouses, workshops, industrial units, retail properties and owner-occupied business premises. Many are held by long-established family businesses through company or trust structures.

Whether the property is in Southwest Sydney, Western Sydney, South Sydney or elsewhere across metropolitan Sydney, it may be worth reviewing the loan if the current facility is expensive or nearing maturity.

A collaborative approach for accountants, valuers and commercial agents

Commercial accountants, property valuers, buyers’ agents, real estate agents and solicitors are often the first professionals to learn that a client’s private facility is approaching expiry.

Common warning signs include:

• The client mentions a high commercial interest rate

• A private loan has less than six months remaining

• The client is requesting another extension

• The business needs additional working capital

• The owner wants to release equity from the property

• The client believes a bank will reject them because their financials are not current

• The property has increased in value

• The client has maintained clean repayments since obtaining the original loan

A quick finance review can establish whether a refinance pathway exists without interfering with the professional relationship between the client and their accountant, valuer, agent or solicitor.

Frequently asked questions

Can I refinance a private commercial property loan to a bank?

Potentially. Approval will depend on the property, LVR, repayment conduct, credit history, ownership structure, loan purpose and the policy of the proposed bank or commercial lender.

Can a company or trust refinance a commercial property loan?

Yes. Commercial properties are commonly held through companies and trusts. The lender will need to review the entity structure, trustees, directors, beneficiaries and proposed guarantors.

Is it possible to refinance without full business financial statements?

Some lender pathways may allow a commercial refinance to be assessed using satisfactory repayment conduct and alternative supporting information. Requirements vary, and full documentation may still be requested.

How much repayment history is normally required?

Twelve months of satisfactory conduct is a useful starting point for certain refinance options, although some lenders may require more or less.

Can I obtain cash out when refinancing?

Potentially. Cash out may be available for acceptable business purposes, subject to the property value, LVR, lender policy and assessment of the proposed use of funds.

When should I start reviewing a two-year private facility?

Ideally, begin the conversation several months before expiry. This provides time for valuations, lender assessment, legal documentation and settlement.

The right finance solution must reflect how business actually works

Small-business income is not always smooth. A set of financial statements can show where a business has been, but it may not fully explain where the business is now—or where it is going.

Commercial refinancing sometimes requires a more inventive approach: understanding the property, the business, the original reason for using private finance and the strength of the borrower’s repayment history.

If your commercial property loan is approaching maturity, your rate feels too high or you need additional business funds, now may be the right time to review your options.

Call Matthew at Fetch My Home Loan on 0423 237 242 or email Matthew@fetchmyhomeloan.com.au for a confidential, no-obligation discussion about commercial property refinancing in Sydney.

This article provides general information only and does not consider your objectives, financial circumstances or needs. Loan approval, rates and documentation requirements are subject to lender assessment, valuation, eligibility criteria, fees and conditions.

Sources: Australian Bureau of Statistics—July 2026 CPI and Reserve Bank of Australia—August 2026 monetary-policy decision.