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Commercial Real Estate Loan

Financing to purchase, refinance, or cash out equity in a commercial property — for owner-occupied businesses or investment properties.

A mortgage on property used for business rather than as your home — offices, retail units, warehouses, apartment buildings.

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Who it's for

Buyers and owners of income-producing or business-occupied property.

How it works

  1. 1The lender assesses the property's income and condition alongside your finances.
  2. 2A deposit is normally required, commonly a meaningful share of the price.
  3. 3Terms run for years, though many carry a balloon — a large final payment — before full amortisation.
  4. 4The property secures the loan.

What to watch out for

Watch for a balloon payment. Many commercial loans amortise over 25 years but come due in 5 or 10, meaning you must refinance or sell by then.

At a glance

  • Purchase, refinance, or cash-out options
  • Longer terms than most business financing
  • Based on the property's value and your business financials
  • For owner-occupied or investment commercial property

Common questions

What is a balloon payment?

Payments are calculated as if the loan runs a long time, but the remaining balance falls due much earlier. Know that date from day one and plan the refinance well ahead of it.

Commercial Real Estate Loan

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