Price and fees
Reduce the all-in cost, not just the headline interest rate.
REFINANCE AND MATURITY EXPLAINER
Commercial Property Refinance
A commercial refinance is not only a rate comparison. It is a new credit decision involving the current value, cash flow, lease, loan purpose, remaining term, requested equity release and the costs of moving.
Plain-English borrower guideNo credit enquiryGeneral guidance onlyReviewed August 2026
WHY REFINANCE
The goal should be clearer than “get a better rate”
A refinance can solve pricing, structure, maturity, equity, covenant or security issues—but each goal changes the evidence and lender options.
Term and repayment
Extend the facility, change amortisation, manage interest-only expiry or align payments with cash flow.
Equity release
Fund business investment, property works, another purchase or a documented purpose.
Security restructure
Release a property or guarantor, separate facilities or reduce cross-collateralisation.
Covenant or review pressure
Move to a structure that better fits current cash flow—before the situation becomes urgent.
Maturity planning
Replace a facility before expiry, avoiding a rushed decision with fewer choices.
A NEW CREDIT DECISION
The new lender starts again
Good conduct with the current lender helps, but the refinance still needs to fit current value, cash flow, documents, property and policy.
| Review area | What may be requested | Why it can change the outcome |
|---|---|---|
| Current debt | Statements, payout figure, limits, arrears and repayment history | Confirms the amount and conduct being refinanced |
| Property value | Fresh valuation, leases, rent, outgoings, condition and reports | Sets the current security and LVR position |
| Cash flow | Financials, tax returns, BAS, rent and other debt | Tests the new repayment capacity and structure |
| Loan purpose | Straight refinance, costs, cash-out and destination of funds | Extra cash can trigger different rules and evidence |
| Entities and guarantees | Borrowers, owners, trusts, directors and security providers | Legal structure and guarantor position may need to be rebuilt |
| Timing | Maturity, fixed-rate end, contract or other deadline | Late preparation can reduce choice and negotiating power |
COMPARE BREAK-EVEN
Check the simple economics before moving
A structure benefit can still justify a refinance even when the rate saving alone is small, but the costs should be visible.
Simple refinance break-even check
Compare the interest and annual fees on the current balance only. This does not model tax, amortisation changes, cash-out, break costs or the value of a longer term.
Approximate annual saving—Interest difference on the entered balance plus annual fee difference.
Simple break-even period—Switching costs divided by the approximate annual saving.
Three-year net difference—Three years of approximate savings less switching costs, before other changes.
Ask for written payout figures and confirm all current and proposed fees before relying on a break-even comparison.
START EARLY
A commercial refinance can take longer than a simple rate switch
Valuation, legal work, entity documents, payout figures and lender conditions can create dependencies.
Set the objective
Write down the target loan amount, purpose, desired term, repayment profile and securities to keep or release.
Collect current information
Statements, facility letters, leases, financials, tax information, entity documents and property details.
Order and manage valuation
Resolve access, lease, property or report questions early.
Compare written structures
Rate, fees, term, repayments, covenants, annual reviews, guarantees, cash-out conditions and exit costs.
Coordinate settlement
Payout, discharge, new mortgage, legal conditions, registrations and any released security must align.
EQUITY RELEASE
Available equity is not the same as available cash-out
The lender may cap the amount or require stronger evidence based on current LVR, repayment capacity, purpose and the destination of funds.
- State the exact amount and purpose rather than asking for the maximum possible cash-out.
- Provide quotes, contracts, budgets, business plans or account details that support the use of funds.
- Explain how the extra debt will be repaid and whether it changes working capital or other liabilities.
- Keep a buffer after the advance rather than using every dollar of property equity.
- Understand whether the new lender will cross-secure other properties or businesses.
- Separate a short-term need from long-term property debt where another structure may be more suitable.
REFINANCE RISKS
A new loan can fix one issue and create another
Compare the facility over the period you expect to hold it.
Longer term
Lower payments can come from stretching principal over longer, increasing total interest.
New interest-only period
Improves cash flow now but can increase the later principal-and-interest payment.
New covenants
A sharper rate may come with tighter reporting or financial tests.
Exit costs
Fixed-rate, hedging, discharge and lender legal costs can materially change break-even.
Valuation risk
A lower current value may reduce equity release or require a smaller loan.
Settlement risk
Late conditions, document errors or discharge delays can threaten a maturity deadline.
PROPERTY AND INDUSTRY CONTEXT
A refinance re-tests the property as it exists today
Changes in occupancy, regulation, condition, market depth, capital works or operator performance can affect current value and lender appetite.
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.
REFINANCE PACK
Information to organise before seeking quotes
A complete pack makes lender comparisons more meaningful.
- Current facility letter, loan statements, limits, repayment type, maturity and payout request.
- Property title, valuation if available, leases, tenancy schedule, rent, outgoings and insurance.
- Current borrower and guarantor financials, tax information, BAS and details of all other debts.
- Entity, trust, company and ownership documents, including any planned changes.
- Exact refinance amount, costs, cash-out purpose and the account or asset receiving funds.
- Known covenant, arrears, tax, credit, property, lease or compliance issues disclosed early.
COMMON QUESTIONS
Commercial refinance questions
Prepare early enough to compare rather than accept the only lender that can meet the deadline.
When should I start a commercial refinance?
Start well before maturity or a fixed-rate end. Complex property, entity, valuation or cash-out issues need more time.
Can I refinance only to get a lower rate?
Yes, but compare all costs, fees, term, repayment profile, covenants and expected holding period.
Can I release equity at the same time?
Potentially. The lender will assess current value, LVR, repayment capacity, amount, purpose and evidence.
Will I need a new valuation?
Often. The new lender must be comfortable with current security value under its process.
Can I refinance after a covenant breach?
Possibly, but disclose it. The cause, current position, lender rights, timing and realistic remedy will matter.
Can a refinance remove a guarantor or property?
It can be a goal, but the remaining borrower and security position must support the new facility.
What is the break-even point?
It is the time needed for expected savings to recover switching costs. Structural benefits may also matter, but should be described separately.
Does a refinance affect GST or stamp duty?
A straight loan refinance generally differs from a property transfer, but entity, security or ownership changes can create legal, tax or duty issues. Obtain advice.
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.
- APRA — APS 220 Credit Risk Management
- APRA — APG 220 Credit Risk Management
- ASIC — unfair contract term protections for small businesses
- Australian Banking Association — Banking Code of Practice
- NDIS Quality and Safeguards Commission — specialist disability accommodation
- Department of Health, Disability and Ageing — provider requirements
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.