Commercial Mortgage Broker Sydney
Need a commercial mortgage broker in Sydney for an industrial unit, warehouse, office or retail investment? We compare 35+ lenders, stress-test DSCR, confirm realistic LVR bands and package the deal around lease strength (WALE, rent reviews, tenant). For the national blueprint, see Commercial Mortgage Broker Australia.
General information only — not financial, legal or tax advice. Commercial facilities may involve lender, valuation, legal and/or broker fees. Updated: 25 February 2026.
Start with numbers and policy (before you apply)
City-based searches often start with a simple question: “Will this deal work on paper?” The fastest path is to triage eligibility first, then model DSCR/LVR, then package the deal for the right lender. These tools open in a new tab.
Business Loan Eligibility Check
Quick pass/fail triage to spot approval blockers before you pay for valuations or legals.
Commercial Property Calculator
Estimate NOI, DSCR, repayments, yield, cap-rate value and breakeven rent.
Commercial Property Finance Guide
LVR tiers, covenants, valuations, lease-doc vs full-doc, and a practical game plan.
Commercial Property Market (Australia)
Sector-by-sector snapshot (industrial / office / retail) and what lenders are watching.
Key lender tests (DSCR, LVR, leases, covenants)
If you want to go deeper on what banks actually check, use these quick support pages:
- DSCR explained (serviceability)
- Deposits & LVR (security)
- Covenants & annual reviews (ongoing tests)
- Lease-doc vs full-doc (documentation path)
Commercial lending in Sydney: local context that changes approvals
Sydney commercial property finance is rarely “average”. Values are higher, competition for well-located stock is intense, and lenders tend to be more granular about the security — especially when the asset is strata, mixed-use, or tightly-zoned. The upside is that Sydney has deep lender competition for prime assets. The downside is that small differences in valuation and lease structure can move your deposit requirement fast.
When we package Sydney deals, we focus on making the file easy for credit to understand: clear net income (NOI), a realistic view of vacancy and downtime, and a lease summary that doesn’t hide the “hard bits”. If you want the national framework first (DSCR, LVR, WALE, covenants), start at Commercial Mortgage Broker Australia — then come back here for Sydney-specific nuance.
Sydney lending appetite often reflects the city’s main commercial corridors and employment nodes:
- Western Sydney logistics: the M7 corridor (Eastern Creek, Erskine Park, Minchinbury, Marsden Park)
- Industrial core: Smithfield, Wetherill Park, Auburn, Silverwater (warehousing and trade supply)
- Airport / port influenced: Mascot, Banksmeadow, Botany (time-critical distribution)
- Metro office nodes: Sydney CBD, North Sydney, Parramatta (office lending depends on building and lease profile)
- Metro retail: strip retail and neighbourhood centres (tenant strength + lease detail are everything)
We use precinct quality and property liquidity as a proxy for how tight a lender is likely to be on LVR and covenants.
Sydney is where we see more of the non-obvious issues that slow approvals:
- Strata industrial units: bylaws, special levies, shared services and use restrictions matter
- Mixed-use titles: residential above / commercial below can change policy and valuation approach
- Higher dollar exposure: even at the same LVR, a large loan amount can trigger a different credit pathway
- Lease detail: incentives, rent-free periods and outgoings recovery change the “real” net income
If any of those apply, we’ll map the right documentation path early: lease-doc vs full-doc.
What lenders focus on for Sydney deals
Sydney borrowers often assume the “hard part” is the borrower. In commercial, the lender is also pricing the property’s income quality and the risk of that income changing. Here are the Sydney-specific checks we build into submissions so the deal doesn’t get stuck mid-credit.
Liquidity beats “nice looking”
Sydney valuations can be sensitive to comparable sales and yield movement. Lenders generally like assets that are easy to re-let or sell (standard industrial, good access, broad tenant appeal). Niche or tightly-zoned assets can mean lower max LVR.
Deposits vary — use: commercial deposits & LVR.
NOI and rent evidence
In Sydney, we often see leases with incentives, stepped rents, or unusual outgoings. Lenders want a clear net income story supported by the lease and rent ledger. If the income is borderline, we model buffers and present a conservative DSCR case.
Start with: DSCR explained.
WALE and tenant concentration
Sydney leases are often 3–5 years with options, but the lender’s question is: “What happens at expiry?” Short WALE, weak tenant financials, or tenant concentration can trigger lower LVR, higher margin, or tighter covenants.
If you’re refinancing, see: commercial property refinance.
Documentation that avoids credit delays
For strata assets, lenders may ask for strata reports, insurance details, and evidence the permitted use matches how the property is occupied. For mixed-use titles, policy and valuation methods can change quickly — so we confirm lender fit before valuation is ordered.
A clean checklist helps. Use the national guide: Commercial Property Finance Guide.
Plan for annual review, not just settlement
Sydney borrowers often refinance for price, but the bigger win can be covenant comfort. We review DSCR/LVR triggers, reporting requirements, and how the lender handles tenant changes — then choose the structure that stays calm.
Read: covenants & annual reviews.
Common scenarios we help with in Sydney
Sydney is not one market — it’s multiple micro-markets. The lender strategy changes depending on whether the deal is owner-occupied, rent-driven, or a restructure. Here are the most common Sydney scenarios and how we approach them.
Buying a strata unit or premises
A common Sydney play is buying a strata industrial unit for your business (trade, logistics, light manufacturing). The lender lens is business cash flow and liquidity — plus whether the strata and permitted use are clean. We run global servicing, then sanity-check valuation risk so the deposit assumption is realistic.
First step: eligibility check.
Rent-driven industrial and retail
Investors often chase yield, but lenders chase income quality. We focus on net rent, WALE, tenant strength and rent evidence. If the lease is short or the tenant is unknown, we plan the lender path that won’t collapse at valuation or annual review.
Model NOI with the calculator.
Improving pricing or flexibility
Sydney refinances are common after tenant churn, rent resets, or when the lender’s annual review terms feel restrictive. We re-check valuation expectations and DSCR buffers, then look for a lender whose policy matches the current lease profile — not the old one.
See: refinance strategy.
Deposit and serviceability in Sydney: how to keep the deal “bankable”
Because Sydney values are higher, the dollar amount of your loan can matter as much as the percentage LVR. The safest path is to model DSCR conservatively, then align the lender to the security and lease profile. For deeper numbers, use the Commercial Property Calculator and review loan costs and fees so there are no settlement surprises.
| Lever | What lenders are thinking | Practical borrower action |
|---|---|---|
| Deposit (LVR) | Prime assets with strong leases can attract stronger LVR appetite. Specialised assets, short WALE and mixed-use can reduce max LVR. | Treat LVR as a range, not a promise. Confirm the realistic band early with this deposit guide. |
| DSCR buffers | Many lenders use stressed interest rates and may re-test on principal & interest. Borderline deals usually fail due to optimistic NOI assumptions. | Use conservative NOI, include vacancy/management allowances, and build headroom. See DSCR explained. |
| Lease documentation | Rent evidence and clear lease clauses reduce the chance of rent haircuts at valuation. Unclear outgoings or incentives can reduce accepted net rent. | Provide the lease, variations, rent ledger and outgoings statement up-front. It shortens credit time. |
| Annual review risk | Sydney lenders often monitor risk via covenants and reporting. A structure that is tight at approval can become stressful later. | Choose a lender with sensible covenant structure. Start with covenants explained. |
Speak with a commercial mortgage broker (Sydney)
We run Sydney deals Australia-wide by phone/video and coordinate lender strategy, valuation timing and credit packaging. If you want to understand how our lender comparisons work nationally, use the pillar: Commercial Mortgage Broker Australia.
The fastest way to get clarity is to send the basics (asset type, price/loan amount, lease summary) and we’ll map: realistic LVR band, DSCR stress test, documentation lane and likely lender fit.
Don’t go unconditional blind
Sydney deals can move quickly. We help you choose the lender lane early so valuation and credit align with your contract timeline.
Rebuild the file for today’s lease
If the tenant has changed, the lease has rolled, or your lender is tightening covenants, we’ll rebuild the submission so the new credit story is clear.
Other commercial mortgage broker hubs
We work Australia-wide by phone/video. These hubs are built to capture geo-intent searches and funnel authority back to the national broker page.
Sydney • Brisbane
Prefer a general locations directory? See: Rate Challenge locations →
FAQs
How much deposit do I need for a Sydney commercial property?
Many Sydney commercial deals start around a 25–35% deposit, but the real requirement depends on the security, lease strength and valuation outcome. Mixed-use titles, short WALE or specialised property can push the required deposit higher.
Are strata industrial units harder to finance in Sydney?
They can be more document-heavy. Lenders may want strata information, insurance and confirmation the permitted use matches the occupation. Good location and a straightforward unit usually help, but complex strata issues can reduce lender options.
Can I get a lease-doc loan for a Sydney investment property?
Sometimes. Lease-doc is driven by net rent, lease quality and evidence rent is actually being paid. Strong tenants and longer WALE support better outcomes, while short leases or heavy incentives can reduce maximum LVR.
How do lenders treat mixed-use property in Sydney?
Policy varies. If the title includes both residential and commercial components, lenders may apply different LVR limits or valuation methods than for a pure commercial title. We usually confirm lender fit before ordering valuation to avoid wasted cost.
What DSCR do lenders look for on Sydney commercial loans?
There isn’t one universal target. Many lenders want a buffer above 1.0 when they stress rates and expenses, and higher-risk property types can need more headroom. The important part is modelling DSCR using conservative NOI assumptions.
Do Sydney commercial loans have annual reviews and covenants?
Often yes. Facilities can include reporting requirements and ratio tests such as DSCR and/or LVR. Building buffers at approval can reduce stress later if rates move or the lease changes.
How long does a Sydney commercial loan approval take?
With complete documents and mainstream security, some deals can reach approval in 1–2 weeks. Valuation booking, lease complexity, mixed-use policy checks and credit queue times can extend that timeline.
Can I refinance a Sydney commercial property and cash out?
Potentially, but cash-out depends on valuation, lender policy, DSCR buffers and the purpose of funds. We generally confirm the safe borrowing limit first, then structure the refinance to keep covenants comfortable.
Can an SMSF buy commercial property in Sydney with finance?
Sometimes. SMSF commercial finance is usually done via an LRBA structure and requires specialist legal and tax advice. Lenders still assess the property, lease strength and DSCR buffers the same way as non-SMSF deals.