Lease Only Commercial Property Loans Overview

What do Lease Only commercial lenders look for?   With Lease Only Commercial property loans, as well as sound commercial security, lenders focus on the lease and its terms.

It's all about the lease.  The quality of the tenant, the lease term, any options, who pays outgoings, and

Property Location  Generally standard commercial security in major metropolitan areas are preferred. One of the key tests for the lender with Lease Only loans is can the property be re let quickly if the property becomes vacant

Loan size   Minimum loan size is $300,000.  Most Lease Only commercial finance is done up to $1m.  No maximum loan size.

Term   From 1 year to 30 years. For Lease Only commercial property loans the lenders are looking at the income streams. There is normally a trade off between rate and term. Shorter term Lease Only commercial loans are normally done at cheaper rate,

  • LVR 
  • 75% up to $1m
  • 65% unlimited, and assessed on its merits

Indicative Lease Only Rates  As a guide, for standard Lease Only commercial properties, variable rates normally start at 4.69%

Interest Only  A borrower can negotiate with lenders interest only repayments. Lenders can only allow this situation if the business has large cash-flow deposits that are capable of making large interest only repayments before its period expires.  The common interest only commercial term loan is 1-2 year term.  Select commercial loan lenders prefer a 5-year…
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