Investment and commercial loan rates in Australia compared, including ANZ

An ANZ commercial loan is priced on the bank’s assessment of three things: the strength of the business or covenant behind the loan, the loan-to-value ratio against the security property, and the type of asset itself. A standard owner-occupier commercial mortgage with strong trading figures and a low LVR sits at the sharp end of the bank’s range. A specialised asset, a thinner covenant, or a higher LVR pushes the rate up. That logic is consistent across the major banks. What differs between lenders is where each one draws the line, and that is where a deal is priced well or priced poorly.

This guide explains how commercial and investment property loan rates are set in Australia, why the two products price differently, and where bank pricing stops fitting a deal. Windsor Finance is a finance broker, not a lender. We hold no capital of our own and approve nothing. We compare commercial and investment lending across a panel of Australian bank and non-bank lenders so you see more than one bank’s single quote.

A note before the detail. We do not publish any individual lender’s current rates, policies, or product names beyond what those lenders state publicly, and we are not acting for or endorsed by any bank named here. Every figure on this page is indicative. The lender confirms its own terms on application.

What drives a commercial loan rate. A commercial property loan rate is built from the lender’s cost of funds plus a margin for risk. The margin is where the real variation lives, and four factors move it. The covenant. Lenders look hardest at who is behind the loan. A trading business with two or three years of clean financials and steady cash flow services debt comfortably and earns a finer margin. A newer entity, lumpy income, or a complex structure widens the margin. The loan-to-value ratio. Lower LVR means lower risk to the lender, which means a finer rate. Commercial lending sits indicatively up to around 70% to 75% LVR for owner-occupiers and 65% to 70% for investment. Push toward those ceilings and pricing firms up. The asset type. A standard office, retail, or industrial property in a metro location is straightforward security. A specialised asset, a single-purpose building, or regional security narrows the lender pool and lifts the rate. The loan purpose and term. Owner-occupier finance for a business buying its premises often prices below investment lending on the same building, because the bank reads the trading business as the primary repayment source. Across the panel, commercial property loans run indicatively from roughly 6% to 9% per annum, with strong covenant and low LVR at the lower end and complex or specialised security at the higher end. Loan sizes run from $250,000 to $25m and beyond, on terms of 3 to 25 years depending on the lender, with interest-only periods available on investment facilities.

Why investment and commercial loans price differently. People often use the two terms loosely, but they are different products with different risk in the lender’s eyes. An investment property loan funds a residential or commercial property held to earn rent. The lender assesses the deal on rental income plus the borrower’s other income, measured against a serviceability buffer. Investor lending attracts tighter buffers than owner-occupier lending, and lenders set different LVR and servicing appetites for it. Prime residential investment lending prices indicatively around 6% to 8% per annum, up to around 80% LVR, with lenders mortgage insurance applying above 80%. Alt-doc and complex structures price higher. A commercial property loan funds a commercial building, whether the borrower trades from it or rents it out. Owner-occupier commercial finance leans on the strength of the trading business. Commercial investment leans on the lease, the tenant, and the asset. Both price indicatively in the 6% to 9% per annum range, but the inputs the lender weighs are not the same. The practical point for a borrower is this. The same property can attract a different rate depending on how it is held, who occupies it, and how the loan is structured. Comparing only one bank’s quote means seeing one reading of your deal. A second or third lender may read the covenant or the asset more favourably and price it differently.

Where ANZ-style bank pricing fits, and where it stops. Bank commercial and investment lending suits a clean, well-documented case. You have a trading business with two or more years of returns, or an investment property with a solid tenant, the LVR sits comfortably inside policy, the security is standard, and you can work to a four-to-eight-week timetable. In that situation a major bank is often the keenest on rate. Bank pricing strains in four common situations. Self-employed or recently changed income: banks underwrite on the last two years of returns, so a strong business between financial years, or one that has just grown, can fail a full-doc test even when the trading position is sound. Low-doc and alt-doc lenders verify income through BAS, an accountant’s letter, or business bank statements instead, indicatively at 7% to 11% per annum. Specialised or non-standard security: single-purpose buildings, regional or rural-zoned property, short-lease assets, and mixed-use security narrow what a bank will accept, and specialist lenders price on the asset and the exit rather than declining outright. Speed: a bank commercial assessment runs indicatively 1 to 2 weeks to an offer and 4 to 8 weeks to settlement, so a deal on a tighter deadline may need a non-bank or private structure that moves faster. A credit blemish: a prior default, a judgment, or tax debt can close the bank door even on a sound asset, while non-conforming and private lenders price for the risk, indicatively 8% to 14% per annum, with a clean refinance as the planned exit once the file is repaired. The point is not that the bank rate is wrong. If your deal fits the bank box, the bank is usually the cheapest money. The point is knowing which lender takes your deal at the best price before you commit to one.

What to compare when you weigh up commercial and investment lenders. The headline rate is one line of the comparison. Put the whole picture side by side. The comparison rate, not just the advertised rate: establishment fees, line fees on the limit, and valuation costs change the true cost of the money, so a finer rate with heavy fees can cost more than a slightly higher rate with light fees. Maximum LVR: a lender that funds 75% against your security may save you finding equity that a 65% lender would demand. The servicing test: how the lender assesses rental income, business income, and the buffer applied decides whether the deal services at all. Interest-only availability: common on investment facilities, valuable for cash flow, and not offered equally across lenders. The term: commercial terms run from 3 to 25 years, so a longer term can ease serviceability while a shorter one can force a refinance. Speed to settlement: useless to win on rate and miss a settlement deadline. A broker lines these up across the panel in one comparison rather than leaving you to approach each bank in turn and absorb a credit enquiry for each.

How Windsor compares commercial and investment lenders for you. We work the deal, not a single lender’s rulebook. One enquiry reaches banks, near-banks, non-bank lenders, and private credit funds, so you see the keenest structure that actually fits your business and your asset rather than the only one your bank happens to offer. We hold no balance sheet, so there is no product to push. The recommendation follows your deal. We package the file so the lender’s credit team reads a clean, complete case the first time, which protects both your rate and your settlement date. And we shortlist the right lender first time, so a sound deal is not lost to the costly loop of decline, re-shop, and a damaged credit file. Commercial lending and most business-purpose investment lending sits outside the National Consumer Credit Protection Act 2009, because it is for business or investment purposes, evidenced by a signed business-purpose declaration. Some residential investment lending to individuals is consumer credit, regulated by the NCCP Act and overseen by ASIC, with responsible lending obligations attached. We confirm the purpose at enquiry and handle each correctly. Windsor Finance is a finance broker. The purpose of each deal is confirmed in writing before it proceeds. We do not provide tax, credit, or financial advice, and we are not affiliated with any bank named on this page. Every rate, fee, and LVR here is indicative; the lender confirms on application. For the full picture on each product, see commercial property loans and investment property loans.