The information required depends on whether the property will be owner occupied or held as an investment, who will borrow, the nature of the asset and the strength of the supporting income.
Clarify the purpose and borrower structure
Start by identifying whether the property will be used by the operating business, leased to third parties, developed, refinanced or acquired for another commercial purpose. The proposed borrower may be an individual, company, trust, self-managed superannuation fund or another entity, subject to lender policy and appropriate advice.
Entity, tax and legal decisions should be made with qualified advisers before documents or contracts are finalised. A finance structure should support the intended transaction, not determine the ownership structure in isolation.
Property and lease information
- Address, property type and proposed use
- Contract of sale or current ownership details
- Existing and proposed leases, rent and expiry dates
- Outgoings, occupancy and vacancy information
- Planning, environmental or specialised-use considerations
- Valuation reports if already available
Specialised properties can have narrower lender appetite or different valuation considerations. Allow enough time for due diligence and valuation.
Borrower and business financial information
Depending on the transaction, lenders may request company and trust financial statements, tax returns, business activity statements, bank statements, rental schedules, current debts, asset and liability details, forecasts and evidence of available funds.
Explain the source of deposit or equity, how repayments will be supported, and any unusual or one-off items in the financials. Current management figures may be important where the latest completed accounts no longer represent the business position.
Deposit, valuation, costs and loan terms
Commercial property loans can differ from residential loans in deposit requirements, establishment and valuation fees, loan terms, amortisation, review conditions and security requirements. Goods and services tax, stamp duty and legal costs can also affect funds required to complete.
Compare the full facility rather than only the interest rate. Consider repayment structure, covenants, annual reviews, early repayment costs, guarantees and whether working capital will remain adequate after settlement.
A practical commercial finance process
- Define the transaction, timing, borrower and ownership structure.
- Gather property, lease, entity and financial information.
- Assess the funding requirement and repayment position.
- Identify lender appetite and compare suitable structures.
- Prepare a clear application supported by current evidence.
- Complete valuation, legal and approval conditions.
- Coordinate finance requirements through to settlement.
Where a separate operating-business need is involved, the Business loan application guide explains further preparation steps.
Return to the Finance guide hub, explore Commercial finance support, or book a consultation.