You may have commercial property refinance options below 7% — depending on your property, loan structure, financial position and the lender’s current credit policy.

If you arranged your commercial property loan with a non-bank lender, it may be worth reviewing your position. A loan that was suitable when you first applied may not be the most competitive option after your business has built a stronger repayment history, updated its financials or increased the quality of its supporting documentation.

At Fetch My Home Loan, Matthew Stack can help you understand whether a commercial loan refinance review is worthwhile and what information a lender may need before assessing your application.

Important: A rate below 7% is not guaranteed. Commercial lending rates, fees, loan terms, valuation requirements, lender policy and approval criteria vary. Any potential saving should be assessed against the total cost of refinancing, including break costs, application fees, valuation fees, legal costs and other charges.

What is commercial property refinance?

Commercial property refinance is the process of replacing an existing commercial property loan with a new loan, usually with a different lender or under a revised loan structure. The property may be an office, warehouse, retail premises, industrial building, medical facility, development site or another property used for business or investment purposes.

The purpose of refinancing is not always to chase the lowest advertised interest rate. For many commercial property owners, the more important question is whether the new loan could improve the overall position. That might involve reducing the interest rate, moving from a non-bank lender to a bank or specialist lender, restructuring repayments, releasing equity, consolidating eligible debts or creating more predictable cash flow.

A refinance is still a new credit assessment. The lender will usually consider the property, borrower, loan structure, repayment history, financial documents, lease position and the purpose of the loan. Approval is subject to the lender’s policy and the information provided.

Why review a commercial property loan now?

Commercial property loans can be more individually structured than standard residential home loans. Your pricing and available options may have been influenced by the property type, loan-to-value ratio, business performance, borrower entity, lease income, documentation and the lender’s risk appetite at the time of application.

If those circumstances have improved, your borrowing profile may also have changed. A refinance review can help identify whether the current loan still reflects your position or whether another lender may consider the application differently.

The review may be especially relevant if you have been paying a higher rate because the original loan was arranged quickly, the application used limited documentation, the property was held in a company or trust, or the lender was comfortable with a more complex business structure.

Could you be a candidate for commercial loan refinance?

There is no single checklist that guarantees approval, but the following factors may help support a refinance discussion.

These factors are indicators for a conversation, not promises of approval or a particular interest rate. A commercial loan refinance application may still be affected by serviceability, credit history, property type, lease terms, financial performance, tax position, entity structure and the lender’s current appetite.

Non-bank commercial loan refinance: what should you consider?

Non-bank lenders can be useful in commercial finance because they may consider situations that do not fit a major bank’s standard criteria. That flexibility can be valuable when the property or borrower structure is complex, the application is time-sensitive or the business has unusual income patterns.

However, flexibility can sometimes come with a higher interest rate, different fees or a shorter loan term. Once your financial position has matured, it may be sensible to ask whether a different lender could now offer a more suitable structure.

The right question is not simply, “Can I move away from my current lender?” It is, “Would changing lenders improve my overall position after all costs, conditions and risks are considered?” A broker can help compare potential options, but the final recommendation should be based on the complete loan proposal rather than the headline rate alone.

How much could a commercial property refinance save?

The potential impact of a rate reduction depends on your outstanding loan balance, repayment structure, remaining term and the costs of changing loans. Even a small rate difference can affect interest expense, but the result will vary from one borrower to another.

For example, a borrower with a large commercial loan may see a meaningful difference in interest expense when the rate changes. That does not automatically mean refinancing is beneficial, because an application may involve valuation, legal, application, discharge or break costs. A lower interest rate may also be paired with different conditions, repayment requirements or loan features.

The practical comparison should include the following:

This is why a commercial property refinance assessment should focus on the total position, not just whether an advertised rate appears lower.

Can a company or trust refinance a commercial property loan?

A company or trust may be able to refinance a commercial property loan, but the application can require more documentation than a loan held in an individual name. The lender may need to review the entity structure, trust deed or company information, financial statements, tax returns, director or guarantor details and the relationship between the borrowing entity and the property.

The ownership structure should be identified early. It can affect the documents required, the parties who need to provide information, the nature of any guarantees and the way the lender assesses income, assets and liabilities. It may also affect legal and tax considerations, so borrowers should obtain independent advice where appropriate.

Company or trust ownership is not automatically a reason to avoid a refinance review. It is a reason to prepare carefully and allow enough time for the lender, solicitor, accountant and broker to review the structure.

What documents may be needed?

The exact requirements vary by lender and application type. Preparing current information can make the initial review more efficient and may help avoid delays.

Commonly requested information may include recent business financial statements, tax returns, BAS or other trading information, current loan statements, details of assets and liabilities, identification documents, company or trust documents, rent or lease information, property details and evidence of repayment history.

If the property is leased, the lender may also want to understand the lease term, rental income, outgoings and any relevant vacancy or tenancy considerations. If the property is owner-occupied, the lender may focus more heavily on business cash flow and trading performance.

Are some lenders covering valuation costs?

Some lenders may offer to cover or contribute towards valuation costs for eligible applications. This is not universal and may depend on the lender, property type, loan size, valuation method, approval outcome and other conditions.

Before relying on a valuation-cost offer, ask what is included, when the cost is covered, whether the offer applies to your property and what happens if the application does not proceed. A lender contribution may also be subject to limits, exclusions or other fees.

A practical commercial property refinance process

A refinance review does not need to begin with a full application. The first step can be a conversation about your current loan, property, business position and what you want to achieve.

1. Clarify the reason for the review

Start by identifying the main objective. You may want to reduce interest expense, improve monthly cash flow, change lenders, release equity, consolidate eligible debts or prepare for a future purchase. A clear objective helps determine which loan structures deserve attention.

2. Review the existing facility

Gather the current loan balance, interest rate, repayment type, remaining term, maturity date, fees, security details and any fixed-rate or early-exit conditions. The new proposal should be compared against the existing facility on a like-for-like basis.

3. Update the financial information

Current financials and BAS information can help provide a more accurate picture of the business. If your repayment record has strengthened or the property position has changed, those improvements should be documented rather than assumed.

4. Assess lender fit

Commercial lenders can differ significantly in how they assess property type, entity structure, financial documentation, rental income, loan-to-value ratio and serviceability. The aim is to identify lenders whose policy may fit the application, rather than applying broadly without a clear strategy.

5. Check the full cost of the proposed refinance

A lower rate is only one part of the decision. Confirm the proposed fees, valuation arrangements, legal requirements, repayment schedule, loan term, guarantees, covenants and any conditions before deciding whether to proceed.

6. Decide whether the numbers and structure make sense

If the potential benefits are clear and the risks and costs are understood, you can decide whether to submit an application. Approval remains subject to lender assessment and formal documentation.

Could a commercial property refinance improve your cash flow?

If you are paying more than 7.5% on a commercial property loan, it may be worth checking whether your current loan still reflects your position. Twelve or more months of strong repayments, updated financials or BAS information, and a well-documented company or trust structure may provide useful starting points for a review.

There is no obligation to apply, and a conversation does not guarantee a lower rate or approval. It can, however, help you understand your potential options before deciding whether a refinance is worth pursuing.

Speak with Matthew Stack about your commercial property refinance options.

Matthew Stack Fetch My Home Loan Phone: 0423 237 242 Email: matthew@fetchmyhomeloan.com.au

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General information disclaimer: This article is general information only and does not constitute personal financial, credit, legal, tax or accounting advice. Commercial lending is subject to lender criteria, responsible lending requirements where applicable, valuation, documentation and formal approval. Rates, fees, terms and lender policies can change. Consider whether the information is appropriate for your circumstances and obtain professional advice before making a decision.

You can explore more refinancing guides on the Fetch My Home Loan blog, visit the homepage, or book a conversation with Matthew when you are ready to review your position.

Useful next steps: visit the Fetch My Home Loan homepage, browse refinancing guides, or book a conversation with Matthew.