1. Property contribution
Purchase price or accepted value less the loan, plus any valuation shortfall.
CASH-TO-COMPLETE EXPLAINER
Commercial Property Loan Costs and Fees
The contract deposit is not the whole budget. Commercial property transactions can also involve duty, GST questions, valuation, lender legal work, due diligence, registration, fit-out and ongoing review costs.
Plain-English borrower guideNo credit enquiryGeneral guidance onlyReviewed August 2026
THE FOUR-BUCKET BUDGET
Separate the property price from the transaction budget
A clean budget makes it obvious which costs are certain, which are estimates and which amounts may be recoverable later.
2. Government and tax
Transfer duty, registration, landholder issues, GST cash flow and state-specific property taxes.
3. Finance and professional
Lender application or establishment fees, valuation, legal, conveyancing, searches, reports and any disclosed broker fee.
4. Property and business cash
Repairs, fit-out, compliance work, stock, vacancy, rent-free periods, working capital and a contingency.
PURCHASE COSTS
Costs that can arise before and at settlement
The actual list changes with the state, entity, property and contract.
| Cost | What to confirm | Common trap |
|---|---|---|
| Transfer duty / stamp duty | Official state calculator, land use, contract date, market value and entity | Assuming residential duty rules or a generic calculator apply to commercial land |
| GST | Whether the sale is taxable, GST-free as a going concern, or another treatment applies | Treating “plus GST” or “going concern” as a cash-neutral label without advice |
| Valuation | Lender-ordered report, specialist reports, reinspection or progress valuation | Budgeting only for one basic valuation |
| Legal and conveyancing | Contract review, title, leases, lender documents, guarantees and settlement | Ignoring lender legal fees charged to the borrower |
| Due diligence | Building, environmental, planning, lease, fire, access, services and compliance reports | Skipping reports because the lender has a valuation |
| Registration and searches | Mortgage, title, company, trust and settlement charges | Leaving small mandatory charges out of the funding statement |
BUILD YOUR BUDGET
Add the major cash-to-complete items
Replace every estimate with a written figure before settlement.
Cash-to-complete worksheet
Enter estimates from your conveyancer, accountant, lender, valuer and other advisers. Use zero where a cost does not apply.
Property contribution—Purchase price less the entered loan.
Other entered costs and buffers—Does not automatically include every tax, duty or adjustment.
Total estimated cash needed—Before subtracting any deposit already paid or confirmed GST credit timing.
Obtain transaction-specific advice. Duty and GST can change materially by state, land use, contract wording and entity.
ONGOING AND REVIEW COSTS
The cheapest rate is not always the cheapest facility
Compare the total expected cost over the period you are likely to keep the loan.
Interest and principal
Repayment type, rate margin, reference rate, reset dates and the payment after any interest-only period.
Account and line fees
Monthly, annual, limit, non-utilisation or facility fees can change the all-in cost.
Annual review costs
Review, covenant, valuation, legal or documentation costs may arise during the loan.
Property holding costs
Rates, land tax, insurance, repairs, management, strata and owner-paid lease outgoings.
Hedging or fixed-rate costs
Understand break costs, swap or fixed-rate consequences before changing or repaying early.
Professional support
Accounting, tax, legal, property management or compliance work may be needed to maintain the structure.
DUTY, GST AND STATE DIFFERENCES
Use official tools and transaction-specific advice
Tax and duty can be one of the largest differences between two otherwise similar purchases.
Official state and ATO links are included in the source section below. Do not use a residential calculator or an old saved estimate.
REFINANCE AND EXIT COSTS
Moving the loan has its own budget
A lower rate can still be poor value if the loan will be repaid before the switching costs are recovered.
Current lender payout
Obtain a written payout figure including accrued interest, discharge, early repayment and any fixed-rate or hedging costs.
New lender costs
Add application, valuation, legal, settlement, registration and any ongoing fee difference.
Property work
A new valuation may reveal repairs, compliance work or updated reports needed before settlement.
Break-even
Compare the annual all-in saving with the switching cost and expected holding period.
PROPERTY AND INDUSTRY CONTEXT
Specialised assets can require a wider due-diligence budget
The cost is not only the loan. Operator-dependent and regulated properties can need specialist legal, technical, environmental or compliance review.
Standard industrial, office and retail
Market depth, location, access, building condition, lease quality and alternative use normally matter. A conventional property can still be difficult if it is vacant, poorly located or highly altered.
Medical, childcare and pharmacy
Fit-out, licences or approvals, operator capability, local demand and the cost of changing the property to another use can affect both cash flow and value.
Hotels, pubs, caravan parks and aged care
The property and operating business may be closely connected. Management, occupancy, seasonality, licences, staffing and capital works can become central to the credit decision.
SDA and other specialised accommodation
Design certification, enrolment or registration, provider arrangements, participant demand, vacancy and alternative-use value need to be separated rather than treated as one guaranteed income stream.
Self-storage, land-lease and emerging assets
Stabilised occupancy, ramp-up assumptions, pricing, operating costs, development stages, presales and management systems can matter more than a single headline rent or forecast.
Service stations and environmentally sensitive sites
Lease quality, site history, contamination risk, environmental reports, remediation exposure and future marketability can affect valuation, leverage and lender appetite.
BEFORE COMMITTING
Ask for one consolidated funding statement
The statement should show the amount, payer and due date for each item.
- Ask the conveyancer for the current duty and registration estimate from the official state source.
- Ask the accountant and lawyer to confirm the GST wording and cash-flow timing.
- Ask the lender or broker for all establishment, legal, valuation, review, variation and exit fees.
- Separate refundable or claimable amounts from cash that must still be available at settlement.
- Include due diligence, immediate repairs, fit-out, vacancy and working capital.
- Keep a contingency for valuation shortfall, settlement adjustments and delayed GST recovery.
COMMON QUESTIONS
Commercial property cost questions
Confirm every material amount in writing.
What costs are added to a commercial property deposit?
Common additions include duty, GST cash flow, legal, valuation, lender, registration, due diligence, fit-out and a cash buffer.
Is GST always payable on commercial property?
No. Treatment depends on the seller, property and transaction, including whether a GST-free going concern applies. Obtain tax and legal advice.
Does every state charge the same stamp duty?
No. Rates, classifications and reforms differ. Use the official revenue authority for the state or territory.
Can the lender finance the costs?
Sometimes some amounts may be included, but this increases the loan and must fit value, LVR, serviceability and purpose rules.
Who pays the lender’s legal fees?
Commercial borrowers are often required to pay lender legal costs, but the actual documents and quote control.
Are annual review fees common?
They can apply in commercial facilities. Ask for the review and valuation schedule before accepting the loan.
What is a break cost?
It can arise when a fixed-rate or hedged facility is changed or repaid before its agreed end. Request a written estimate.
Why keep cash after settlement?
Vacancy, repairs, tax, fit-out, stock and working capital can arrive after the purchase funds have been used.
COMMERCIAL FINANCE LEARNING PATH
Move between the question you have now and the next useful check
Each page owns one topic, while the pillar, calculator and guide bring the whole transaction together.
Focused explainers
DSCR explainedHow lenders test whether cash flow can cover the debt.Deposit and LVRHow value, loan size and property risk affect your contribution.Covenants and annual reviewsWhat ongoing loan promises and reviews can mean after settlement.Costs and feesPurchase, finance, due-diligence and ongoing costs to budget for.Valuation processWhat the valuer looks at and why the lender value can differ.Lease-doc vs full-docThe evidence pathways and trade-offs in plain English.Commercial refinanceHow to compare a refinance, release equity and manage maturity.
Core tools and guidance
Commercial Property FinanceSpeak with a commercial finance broker about the complete transaction.Commercial Property CalculatorModel repayments, income support, property-value limits and cash needed.Commercial Property Finance GuideRead the broader end-to-end commercial property finance guide.Commercial Property Market UpdateSee the market and lending context around commercial property.Business Loan Eligibility CheckOrganise a first-pass business funding scenario before a full review.
Official sources and further reading
These sources support the general regulatory, valuation, tax or consumer-protection context. They do not provide lender-specific approval rules. Links checked August 2026.
- ATO — GST and commercial property
- ATO — GST at settlement
- State Revenue Office Victoria — land transfer duty calculator
- State Revenue Office Victoria — commercial and industrial property tax
- Revenue NSW — calculate transfer duty
- Queensland Revenue Office — transfer duty estimator
- RevenueWA — duties calculator
- RevenueSA — real property and qualifying land
- State Revenue Office Tasmania — duty calculator
- ACT Revenue Office — conveyance duty
- Northern Territory Revenue Office — stamp duty calculators
- ASIC — unfair contract term protections for small businesses
NEXT STEP
Use the explainer to frame the question, then check the whole transaction.
Rate Challenge can review the borrower, property, lease or business cash flow, valuation, evidence, costs and loan structure together. A specific lender outcome is only available after the full scenario is assessed.
General information only. This page does not provide legal, tax, valuation or financial advice; quote a lender’s current policy; assess eligibility; or promise approval. Lender policy, pricing and documentation can change. Confirm the transaction with the relevant lender, broker, lawyer, accountant, valuer, conveyancer and government authority before acting.