Commercial Property Loan Types in Australia: Full Doc, Lite Doc, Low Doc & Lease Doc Explained

🏢 Understanding Commercial Property Loan Types in Australia

When it comes to securing finance for a commercial property in Australia, one size doesn’t fit all. Borrowers come from all walks of life—self-employed tradies, doctors, SMEs, developers—and lenders offer different types of loans to match their financial circumstances.

This guide breaks down the main types of commercial property loans in Australia—Full Doc, Low Doc, Lite Doc, and Lease Doc—with examples, borrower types, and documentation requirements.

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✅ Full Doc Commercial Property Loans – For Borrowers with Strong Financials

For both owner occupied commercial property loans and investment commercial property loans.

Who it’s for:

• PAYG employees
• Businesses with up-to-date tax returns
• Self-employed borrowers with complete financials

Required Documents:

• Last 2 years’ tax returns (personal and business)
• Recent financial statements (P&L, balance sheet)
• BAS statements
• Bank statements (3–6 months)
• Lease agreements (if rental income is used for servicing)

Example:
Sarah runs a successful dental practice in Sydney. Her accountant prepares regular financials, and her tax returns are up to date. She qualifies for a full doc commercial loan at a competitive rate with a major bank to buy a retail unit in the CBD.

Pros:

• Lower interest rates
• Higher maximum LVR (up to 100% under medical finance policies. Non medico between 65-80%)
• Broad lender choice

Cons:

• Slower approval process
• Strict documentation requirements

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🧾 Lite Doc Loans – For Borrowers with Partial Documentation

Who it’s for:

• Self-employed borrowers with partial financials
• Recently restructured businesses

Required Documents:

• BAS statements (last 2 quarters or 12 months)
• Accountant’s letter
• Business bank statements
• Self-declared income form
• Partial financials or tax returns (optional)

Example:
John is a self-employed electrician in Newcastle NSW who changed his business structure last year. He doesn’t have two full years of tax returns but can provide BAS and bank statements. A specialist lender approves a lite doc loan to help him purchase a small warehouse.

Pros:

• More flexible than full doc
• Faster processing
• Available through non-bank lenders

Cons:

• Higher interest rates
• Lower LVRs (60–70%)
• Fewer lenders

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📉 Low Doc Loans – For Self-Employed or Cash-Based Businesses

Who it’s for:

• Sole traders
• Businesses with irregular income
• Self-employed with no recent tax returns

Required Documents:

• Self-declared income declaration
• Accountant’s letter
• Business activity or bank statements
• ID and asset/liability position

Example:
Karen runs a market stall and has strong cash flow but hasn’t lodged her last tax return. Using a declaration of income and accountant’s letter, she secures a low doc loan from a non-bank lender to buy a strata office in Parramatta.

Pros:

• Minimal documentation
• Fast approval
• Good for non-conforming borrowers

Cons:

• LVR typically maxes out at 65%
• Higher rates and fees
• Limited lender options

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📃 Lease Doc Loans – For Investors with Tenanted Properties

Who it’s for:

• Commercial property investors
• Borrowers with tenanted investment properties
• SMSFs purchasing income-generating assets

Required Documents:

• Executed commercial lease agreement
• Rental income schedule
• Property management statements (if applicable)

Servicing is assessed based on lease income alone, not personal income or business financials.

Example:
David owns a fully tenanted industrial unit in Melbourne leased to a logistics company. He applies for a lease doc refinance loan, where the rental income services the debt. His personal income isn’t considered.

Pros:

• Ideal for SMSFs and investors
• Fast processing
• Minimal personal financials required

Cons:

• Property must be leased
• LVR usually capped at 65–70%
• Only available through select lenders

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🤔 Choosing the Right Loan Type

Here’s a quick comparison:

Loan Type	Suitable For	Documents Needed	Max LVR	Interest Rate
Full Doc	PAYG, established businesses	Tax returns, financials	60–80%	Lowest
Full Doc	Medical and Professional Services	Tax returns, financials	60-100%	Lowest
Lite Doc	Partial docs, business restructure	BAS, bank statements	60–80%	Moderate
Low Doc	Self-employed, no full financials	Income declaration, BAS	~75%	Higher
Lease Doc	Tenanted commercial property owners	Lease agreement	65–80%	Moderate

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📌 Final Thoughts

Whether you’re a seasoned investor or a small business owner, there’s a commercial loan product suited to your situation. From full documentation for the financially organised to lease doc loans for property investors, understanding the types of commercial property loans in Australia can help you make informed decisions and access the finance you need.

🚀 Ready to Apply or Compare Options?

Whether you’re a seasoned investor, a small business owner, or just exploring your commercial property finance options, getting expert support can make all the difference.

👉 Get tailored commercial property loan quotes now:
Visit our dedicated commercial loans website for more information or get a free commercial property loan quote to get in contact with a commercial finance broker to compare loan types, interest rates, and lender options—no tax returns required for lease doc and low doc loans!