Navigating Melbourne’s commercial property market requires a lender who understands the local landscape. From the industrial hubs of Tullamarine and Dandenong to the office towers of Collins Street and suburban retail strips, LoanBrix delivers tailored finance solutions.

Commercial Lending Without the Complexity | LoanBrix

Unlike residential loans, commercial lending is about the asset’s performance. We help you secure the right loan structure based on your property’s income, tenant strength, and long-term viability.

Also see our page using an SMSF for a commercial property loan in Melbourne.

Expand your portfolio
Purchase a commercial property as an investment and grow your asset base.

Streamline your debt
Consolidate business credit cards, unsecured loans, or other commercial debt into one simpler, lower-cost loan.

Own your business premises
Buy a property to house your own business—stop paying rent and start building equity.

Refinance for better terms
Switch lenders to secure a lower interest rate, extend your loan term, or unlock new features.

Upgrade your space
Renovate your commercial property (non-structural improvements only) to increase value and appeal.

Melbourne lenders are currently applying tighter criteria than ever before. Major banks now commonly cap loans at 60%–70% LVR, with higher rates and complex review processes.

LoanBrix bridges the gap.

We connect you to the right lender, whether it’s a major bank, a non-bank specialist, or a private funder, based on your specific business, property and investment goals.

Since 1 July 2024, Victoria has been transitioning away from upfront stamp duty for commercial and industrial assets. If you are purchasing a property that is entering this new tax regime, you have a critical choice: pay the final stamp duty lump sum upfront or access the Government-facilitated Transition Loan.

As your local commercial property experts, we help you navigate the Treasury Corporation of Victoria (TCV) requirements to ensure this 10-year facility integrates seamlessly with your primary commercial mortgage.

Key Features of the TCV Transition Loan

The transition loan is designed to “smooth” your cash flow by converting a massive upfront tax into ten manageable annual instalments.

• Loan Amount: Available for property purchases up to $30 million. The loan specifically covers the land transfer (stamp) duty amount, capped at a maximum of $1.93 million.

• The 10-Year Term: The loan must be repaid in 10 equal annual instalments (Principal + Interest). This timeline is strict because it is designed to conclude just before the annual 1% Commercial and Industrial Property Tax (CIPT) kicks in at the year 11 mark.

• Fixed Interest Rates: The rate is fixed for the life of the loan. It is calculated as the TCV base rate (government borrowing cost) plus a risk margin (which was set at 2.25% for the initial rollout and is reviewed annually).

• Security: The loan is secured by a first-ranking statutory charge on the property. This is a critical detail for your primary lender, as it sits “on top” of their mortgage.

Eligibility & Credit Requirements

To qualify for the TCV transition loan, you must meet both government criteria and credit metrics:

1. LVR Cap: Your total interest-bearing debt (your primary commercial loan + the TCV transition loan) generally cannot exceed 75% LVR.

2. Entity Status: Available to Australian citizens, permanent residents, or Australian-registered businesses. Foreign owners are currently excluded.

3. Finance Pre-approval: You must provide TCV with evidence of your primary finance approval (e.g., your LoanBrix pre-approval letter) before they will assess your transition loan application.

The “Exit” Trap: Selling Before Year 10

A vital consideration for Melbourne investors is the exit strategy. If you sell the property or change its use (e.g., redeveloping a warehouse into residential apartments) before the 10-year term ends, the entire outstanding balance of the transition loan must be repaid immediately at settlement. It cannot be transferred to the new buyer.

Why work with LoanBrix? Many standard bank calculators do not automatically factor in the “statutory charge” of a TCV loan. We work with a panel of lenders who are “CIPT-ready,” ensuring your primary commercial loan and your transition loan work in harmony without triggering serviceability issues.

In the Melbourne commercial market, the Loan-to-Value Ratio (LVR) acts as the primary gauge of lender risk. While residential loans often allow for high leverage (up to 95%), commercial lending is more conservative, generally requiring a more significant capital contribution from the borrower.

The following guide outlines the standard LVR expectations across different Melbourne asset classes and borrower profiles.

LVR Limits by Asset Class & Suburb Profile

Lenders categorise Melbourne into “Risk Zones.” A prime industrial asset in a core hub will typically command a higher LVR than a niche retail shop in an outer-regional suburb.

Owner-Occupier vs. Investor: The Leverage Gap

One of the most significant factors in determining your LVR is your relationship to the property.

• Owner-Occupier (Max LVR: 75% – 80%): If you are buying a premises for your own business to operate from, lenders view this as lower risk. Your business’s trading history provides the primary “serviceability,” and banks often offer higher leverage to secure your long-term business banking relationship.

• Investor (Max LVR: 65% – 70%): Pure investment loans rely heavily on the rental income of the property. Lenders are more conservative here because if a tenant leaves, the property may sit vacant for months, jeopardising loan repayments.

Key Factors That Influence Your Specific LVR

Lenders don’t just look at the property; they look at the “Three Pillars” of the deal:

1. Weighted Average Lease Expiry (WALE): A property with a blue-chip tenant on a 10-year lease will almost always secure a higher LVR (and a lower interest rate) than a property with a tenant on a month-to-month “holdover” lease.

2. Serviceability (DSCR): Most Melbourne lenders require a Debt Service Cover Ratio (DSCR) of at least 1.2x to 1.5x. This means your net rental income must be 20% to 50% higher than your annual loan repayments.

3. Full Doc vs. Alt-Doc: * Full Doc: Providing two years of complete financial statements usually unlocks the highest LVRs.

   • Alt-Doc / Lease Doc: If you cannot provide full financials but have a strong lease in place, you may be limited to 60% – 65% LVR through specialist non-bank lenders.

The “No-LMI” Advantage

Unlike residential loans, commercial property finance does not use Lenders Mortgage Insurance (LMI). If you want to borrow at a higher LVR than the bank’s “standard” cap, you cannot simply pay a fee to do so. Instead, you must typically provide additional security (such as equity in a residential home or another commercial asset) to “cross-collateralise” the loan and reduce the bank’s net exposure.