Short-Term Commercial Property Loans in Australia
Short-term commercial property loans are used for:
- Bridging finance
- Time-sensitive acquisitions
- Renovation or value-add projects
- Refinancing or debt consolidation
- Land purchases before DA approval
Loan terms typically range from 3 to 24 months with interest-only repayments, and loan sizes range from $100,000 to over $50 million, depending on the lender.
🏦 Bank Lenders (Major and Second-Tier)
✅ Major Banks – CBA, Westpac, NAB, ANZ
- Short-term lending options are limited.
- Minimum loan term often starts at 12 months.
- Require full documentation: tax returns, leases, financial statements.
- Suited to stabilised income-producing properties.
- Interest Rates: please visit commercial loan interest rates page.
- Approval time: 2–6 weeks.
Real Example – Full Doc Loan via Major Bank:
A medical centre owner in Sydney refinanced their existing loan with CBA for $2.4 million over 12 months. The property was fully leased and generating stable rental income. Full financials, lease schedules, and tax returns were required. Approval took 4 weeks.
✅ Second-Tier Banks – Macquarie, BOQ, Suncorp, Bendigo
Second-tier banks are slightly more flexible than the Big Four but still operate within strict lending criteria.
- Require full documentation: business financials, tax returns, leases, and serviceability evidence
- No genuine low doc options offered – lease doc may be accepted.
- LVRs typically up to 75%
- Interest Rates: please visit commercial loan interest rates page.
- Approval time: 2–4 weeks
Real Example – Full Doc Loan via Suncorp:
A business owner in Brisbane sought funding of $1.1 million to purchase a mixed-use commercial property with two tenancies. Suncorp approved the loan on a 3-year term, requiring full company financials, individual tax returns, and lease agreements for both tenants. The deal took 3.5 weeks to settle.lion short-term facility to renovate a retail property. Only the lease agreement and BAS statements were provided. Loan approved in 3 weeks on a 12-month term with an exit plan to refinance to a long-term facility.
🏦 Non-Bank Lenders
Non-bank lenders dominate the short-term market. These include:
- Thinktank
- La Trobe Financial
- Liberty
- Pepper Money
- RedZed
- Resimac Asset Finance
- Prime Capital
- Semper
- Oak Capital
- Bluestone (Commercial)
✅ Key Features:
- Loan terms: 3 to 24 months
- LVRs up to 60–80%
- Full doc, low doc, and no doc options available
- Fast approvals: within 2–5 days (depending on lender and acquisition type)
- Will consider land, vacant property, or tax debt
✅ Documentation Levels
Full Doc:
- Requires financials, BAS, bank statements, lease agreements
- For best interest rates contact us
Low Doc:
- Only accountant’s letter, lease income, or BAS
- Rates typically 8–10% p.a. For best interest rates contact us
No Doc:
- No income verification
- Higher rates 10–15%+. For best interest rates contact us
- Short terms <12 months
- Purely asset-based
Real Example – No Doc Loan via Liberty:
A Melbourne-based borrower used a $900,000 no-doc loan to secure a warehouse purchase at auction. Loan settled in 3 days with no financials provided. Loan term: 6 months at 11.5% p.a. Exit: refinance post-renovation.
🏠 Private Lenders / Family Offices / Peer-to-Peer
Private lenders fill gaps that others can’t – distressed assets, urgent settlements, or borrowers with impaired credit.
✅ Characteristics:
- LVRs: 65–75% (sometimes 80% with pricing premium)
- Loan amounts: $100K to $50M+
- Terms: 3 to 12 months, extendable
- Rates: 8–24% p.a., sometimes prepaid
- Fees: 1–3% setup, legal, and exit
- Security: First or second mortgage, sometimes caveat
- No-doc or low-doc only
- Settlement in 24–72 hours
Common Private Lenders:
- Zagga
- Chifley Securities
- Bridgewise
- Trilogy Funds
- Mortgage House (private arm)
- Funding.com.au
- Broker-linked investor networks
- Many more
Real Example – Private Lender via Chifley Securities:
A regional developer needed $3.5M to settle a DA-pending land parcel. Traditional lenders wouldn’t fund due to zoning uncertainty. Chifley approved a 6-month facility in 48 hours at 13.5% p.a. Loan secured by first mortgage and backed by an exit via development approval.
🔄 Loan Structures & Exit Strategies
Short-term lenders prioritise the exit strategy over long-term serviceability. Common exits include:
- Property sale
- Refinance into a term loan
- Project completion payout
- Business revenue event (e.g. settlement of invoices)
Lenders need a credible and timed exit plan, especially for low or no-doc loans.
📉 Trends & 2025 Market Forecast
📌 Key Trends:
- More demand for private and bridging finance
- Growth in lease-doc and BAS-only products
- Developers using short-term funds for pre-DA land banking
- Rise of second mortgage/mezzanine lending
📌 Challenges:
- High interest rates tighten serviceability
- Banks imposing stricter valuations
- Lower LVRs on special-use and vacant assets
🔚 Summary Table
| Lender Type | Doc Type | LVR Max | Rates (p.a.) | Approval Time | Loan Term |
|---|---|---|---|---|---|
| Major Banks | Full Doc | 60–70% | 6.25–8% | 2–6 weeks | 1–5 years+ |
| Second-Tier Banks | Full / Low Doc | 65–70% | 6.25–9.5% | 2–4 weeks | 1–5 years+ |
| Non-Bank Lenders | All Types | 60–80% | 7–15% | 2–5 days | 3–24 months |
| Private Lenders | Low / No Doc | 65–75% | 10–24% | 24–72 hours | 1–12 months |
📞 Get a Quote
Need a short-term commercial loan tailored to your business or investment goals?
👉 Get Commercial Property Loan Quotes
⚠️ Disclaimer:
The information provided in this article is for general informational purposes only and does not constitute financial advice. Interest rates, loan terms, and lending criteria are subject to change without notice and may vary depending on the lender, borrower profile, and market conditions. The examples provided are illustrative only and may not reflect current lender offerings. Always consult a licensed mortgage broker, lender, or financial advisor before making any lending decisions.