commercialproperty.loans

Ava · CommercialProperty.Loans

Powered by AI · For general info only

Only messages you type are sent. Please do not share identity documents or sensitive financial details.

Hi, I'm Ava. Ask me about the CommercialProperty.Loans application, documents, calculations or commercial property finance.

Calculators

Commercial LVR Calculator

Calculate your loan-to-value ratio and see what's available across the LVR bands — with the lender policy commentary that determines who will actually fund it.

200+ lenders

On panel

25+ years

In commercial finance

ACL 502091

Australian Credit Licence

ABN 91 135 045 340

Registered broker

Maximum loan by LVR band

60% LVR$2,100,000
65% LVR$2,275,000
70% LVR$2,450,000
75% LVR$2,625,000
80% LVR$2,800,000

Your LVR

65.0%

Equity required: $1,225,000

Within bank policy for most asset classes.

The formula

Loan-to-value ratio is the simplest number in commercial finance and the most consequential:

LVR (%) = ( Loan Amount ÷ Property Value ) × 100

The valuation that matters is the bank-instructed valuer's "as-is" market value — not the contract price, not your purchase agreement. Lenders default to the lower of contract price and valuation, so a property bought at a discount caps your borrowing at the lower number, not the discount.

Practical scenarios

$3.5M suburban office, investment

Purchase price $3.5M, valuation comes in at $3.4M. The lender uses $3.4M. At 70% LVR the maximum loan is $2.38M — meaning the borrower needs $1.12M cash plus stamp duty (~$192k in NSW). If the valuation had matched the purchase price, the same 70% would have produced a $2.45M loan.

$8M childcare centre, owner-operator

Childcare is a specialised asset class where major banks fund to 75% LVR on a going concern. $8M valuation × 75% = $6M facility. The borrower contributes $2M plus stamp duty. Equity release on the operator's existing residential portfolio often covers the deposit, with the new commercial debt fully serviced by the centre's net operating cash flow.

$12M industrial portfolio, refinance + equity release

Three industrial units acquired over 8 years, now valued at $12M with $4.8M debt (40% LVR). The borrower refinances to 65% LVR for a new $7.8M facility, releasing $3M cash for the next acquisition while still sitting comfortably within bank policy. This is the most efficient use of LVR — using time and rent growth to compound equity, then recycling it into the next deal.

Typical lender policy

Office, retail, industrial (investment): 65–70% LVR major banks, 75% second-tier with strong covenants. Owner-occupied commercial: 75–80% standard; up to 100% with additional residential security. Childcare, medical, NDIS SDA: 75–80% LVR with operator covenant strength. Specialised (servos, pubs, accommodation): 50–65% on going-concern valuation; higher with strong operator and brand covenant. Development: 65–70% TDC or 75–80% GRV (whichever is lower). Vacant land: 50–60% LVR; very limited bank appetite, mostly non-bank territory.

Related products

Find the lender who'll fund your LVR.

Tell us your asset, purchase price and equity position — we'll come back with the lenders most likely to fund it, at the LVR you need.

LVR Calculator — FAQ

The questions sophisticated commercial borrowers ask about leverage.

Major banks fund to 65–70% LVR for standard investment commercial — office, retail, industrial. Specialised asset classes (childcare, medical, NDIS SDA) extend to 75–80%. Owner-occupied commercial often goes to 75–80% on a major bank, occasionally 100% LVR when secured against additional residential. Lease doc and asset lend products usually cap at 65–70%. Private and non-bank lenders will fund higher LVRs at the cost of materially higher rates.