Call us now 1300-889-743

Commercial Loan Interest Rates

What are the best commercial interest rates on offer? The banks don’t publish them so nobody knows!

Most commercial loans have a negotiated interest rate depending on the loan size, equity position and overall strength of the application. Where lenders do have set pricing we’ve published their best interest rates below for you to compare.

Residentially secured commercial loans

Loan Category Interest Rate Contact Us
Variable 3.80% Apply
1 year fixed 4.29% Apply
2 years fixed 4.19% Apply
3 years fixed 3.75% Apply
5 years fixed 3.99% Apply

If your loan is secured by a residential property and is used for business or commercial purposes then we can get you significantly lower interest rates than your business banker.

Commercially secured loans

Loan Category Interest Rate Contact Us
Variable 4.39% Apply
1 year fixed 4.60% Apply
2 years fixed 4.51% Apply
3 years fixed 4.37% Apply
5 years fixed 4.80% Apply

SMSF commercial loans

Loan Category Interest Rate Contact Us
Variable 4.85% Apply
1 year fixed 4.60% Apply
2 years fixed 4.51% Apply
3 years fixed 4.37% Apply
5 years fixed 4.80% Apply

There are large variations in the interest rates and fees for commercial SMSF loans. Don’t just accept what your bank has quoted you, speak to our mortgage brokers first.

Low doc commercial loans

Loan Category Interest Rate Contact Us
Variable 5.39% Apply
1 year fixed 5.09% Apply
2 years fixed 5.19% Apply
3 years fixed 5.29% Apply
5 years fixed 5.54% Apply

A low doc commercial loan is used in situations where you cannot provide the proof of your income that most lenders require. Some of our banks can accept an income declaration or other income evidence in lieu of full financial statements.

Lease doc commercial loans

Loan Category Interest Rate Contact Us
Variable 5.54% Apply
1 year fixed 5.29% Apply
2 years fixed 5.39% Apply
3 years fixed 5.49% Apply
5 years fixed 5.74% Apply

Lease doc commercial loans allow you to use the rent income of the security property as evidence that you can afford the debt. This is similar to a low doc loan.

No doc commercial loans

Loan Category Interest Rate Contact Us
Variable 6.30% Apply
1 year fixed POA Apply
2 years fixed POA Apply
3 years fixed POA Apply
5 years fixed POA Apply

No doc commercial loans are offered by specialist or private lenders and attract a higher interest rate. These lenders may accept an adverse credit history or no proof of income whatsoever.

Bank bill loan interest rates

Term BBSY Rate Margin Your Rate Contact Us
30 day 1.68% 1.90% 3.58% Apply
60 day 1.78% 1.90% 3.68% Apply
90 day 1.79% 1.90% 3.69% Apply
180 day 2.00% 1.90% 3.9% Apply

There are large differences between the bank bill facility interest rates that are offered by the major banks.

Speak to us before you accept their funding proposal.

What is a bank bill loan?

BBSY loans are funded using the bank’s cost of funds as a reference rate. This is the Bank Bill Swap rate (BBSW) plus 0.05%. The bank then adds a customer margin for the risk of your loan so they make a profit.

When the 30, 90 or 180-day term comes to an end, your loan is rolled over at the new BBSY interest rate for that term plus your customer margin. In effect, this is a variable rate loan where the interest rate changes every few months.

This type of loan is typically available for loan sizes over $2,000,000 but it is more common for loans over $5,000,000 as it is often lower than a standard business loan.

How is the customer margin calculated?

Your customer margin is calculated based on the overall risk of your application.

This includes your security, ability to pay the loan, equity position and anything else that is a risk to a bank. The higher the risk, the higher your margin. We’ve assumed you have a low risk loan in the above quoted interest rates.

Each bank may calculate your customer margin in a different way! This is where we can help to negotiate the lowest possible interest rate.

Please call us on 1300 889 743 or enquire online and one of our commercial mortgage brokers will get back to you with some options.

  • Hirako

    Do you guys also have an LMI rates table or something of the sort?

  • Hey Hirako,

    We do have a page full of LMI premium rates on different LVRs. You can find it here:
    https://www.homeloanexperts.com.au/lenders-mortgage-insurance/lmi-premium-rates/

  • AJ S

    What do you mean by BBSY loan? Is this something any borrower can apply for?

  • Hello AJ S,

    BBSY loans actually use the Bank Bill Swap Rate plus 0.05% as their reference rate. A customer margin is added to balance for the risk of the loan. The terms on offer here are 30, 90 or 180-day terms, after which the loan is rolled over at the new BBSY interest rate for that term plus the customer margin. In effect, this is a variable rate loan where the interest rate changes every few months.

    All borrowers won’t be able to get this as it’s typically available for loan sizes over $2 million but it’s more common for loans over $5 mil as it’s often lower than a standard business loan.

  • Bruce

    I’m looking for a mortgage to help me buy a specialised commercial property. I can provide a residential property as security. The main problem here is that the property is purpose-built and so many lenders seem to be hesitant to lend. Can you help?

  • Hi Bruce,
    We may be able to help you with this but we’ll need to know the full details regarding your situation, property details and loan needs. Please call 1300 889 743 to discuss this with one of our commercial mortgage brokers or simply enquire online and we’ll contact you within 24 hours:
    https://www.homeloanexperts.com.au/free-quote/