Self-employed Australians can apply for commercial property loans to purchase business premises, warehouses, retail spaces or commercial investment properties. While the application process may involve additional financial documentation, many lenders understand that business owners often earn income differently from salaried employees.
Income may be structured through a company, trust, partnership or sole trader arrangement. Business owners may also reinvest profits back into their business rather than drawing a larger salary. As a result, traditional income assessment methods do not always provide a complete picture of financial strength.
Bluestone Home Loans has helped self-employed Australians and borrowers with complex income structures since 2000. We look beyond a standard payslip, considering a broader range of financial information to better understand business performance and borrowing capacity.
Because sometimes the numbers tell more than one story.
Can self-employed Australians get a commercial property loan?
Short answer, is yes!
Self-employed borrowers can access commercial property loans for a range of business and investment purposes. Depending on the lender’s requirements and individual circumstances, applications may be assessed using financial statements, tax returns, Business Activity Statements (BAS) and other supporting information. The documents required and lending criteria will vary based on the property, business structure and overall financial position.
What is a self-employed borrower?
A self-employed borrower is someone who earns or derives income from their own business rather than through traditional PAYG employment.
This may include:
- Sole traders
- Company directors
- Business owners
- Individual partners in a partnership arrangement
- Trustee entities operating under a trust structure
Because income can be distributed or retained in different ways, lenders may consider a broader range of financial information when assessing a self-employed applicant’s borrowing capacity.
What is a commercial property loan?
A commercial property loan is finance secured against a property used for commercial purposes.
Self-employed Australians commonly use commercial property loans to purchase or refinance commercial real estate, whether for their own business operations or to generate rental income.
Common examples include:
- Office buildings and office suites
- Retail premises and shopfronts
- Warehouses and distribution facilities
- Industrial properties
- Medical and allied health suites
- Mixed-use commercial developments, where the commercial use is dominant
Like a home loan, lenders assess both the property and the borrower’s financial position when considering a commercial loan application. However, commercial lending typically involves different assessment criteria, documentation requirements, equity contributions and loan structuring compared to residential lending.
What do lenders look for when assessing a self-employed commercial property loan application?
While requirements may vary between lenders, most want to understand the strength, sustainability and financial position of your business.
This helps lenders assess how your business operates, how income is generated and whether the proposed borrowing is suitable.
Documents commonly requested may include:
- Financial statements
Business financial statements help demonstrate how your business has performed over time and may provide insight into revenue, profitability and operating performance.
- Tax returns
Tax returns provide information about income, financial position and business history.
- Business Activity Statements (BAS)
Business Activity Statements may help support income verification and can provide evidence of trading activity.
- Assets and liabilities
Lenders typically review your overall financial position, including assets, liabilities (both current and contingent) and existing financial commitments.
- Supporting information from a registered accountant
A document signed by a professional accountant typically used to verify a person’s income and financial stability when applying for loans, mortgages, or rental agreements.
Depending on your circumstances, alternative documentation options may also be available.
How much deposit do you need for a commercial property loan?
Commercial property loans often require a larger contribution than residential home loans.
The amount required may vary depending on several factors, including:
- Property type
- Loan purpose
- Loan size
- Business strength
- Borrower profile
Check out Bluestone’s Commercial Property Loans page for key information, including LVRs, maximum loan amounts, loan terms and interest-only periods.
How can self-employed borrowers strengthen their application?
A great first step is to speak with a qualified broker or financial adviser about your needs and circumstances before applying for a Commercial Property Loan.
Here are a few things to consider:
- Are your financial records organised? Up-to-date financial information can help lenders assess your application more efficiently.
- Is your business performance documented? Being able to clearly demonstrate revenue, profitability and cash flow can support your application.
- Do you have any unnecessary debt? Managing existing commitments may help improve your overall financial position.
Having documentation ready before talking to a broker can help streamline the process and reduce delays.
Frequently Asked Questions
Is it harder to get a commercial property loan if you’re self-employed?
Not necessarily. Finding a broker and lender that regularly work with business owners and understand non-traditional income structures can help the process.
Can a sole trader apply for a commercial property loan?
Yes. Sole traders may be eligible for commercial property finance, subject to lender requirements and individual business circumstances. Lenders will typically assess financial information to better understand income and business performance.
Can I buy premises for my own business?
Yes. Many borrowers use commercial property loans to purchase premises from which they operate their business.
Can I use business income to qualify for a commercial property loan?
Lenders may consider various sources of business-related income when assessing a self-employed application. Requirements vary depending on the lender, business structure and individual circumstances.
What if my income is structured through a company or trust?
Many self-employed Australians operate through companies or trusts. Lenders may consider a range of financial information to gain a broader understanding of the overall financial position and business performance.
What documents are required for a self-employed commercial property loan?
Requirements vary, but lenders commonly request financial statements, tax returns, Business Activity Statements (BAS), and information relating to assets and liabilities. Additional documentation may also be required depending on the application.
The bottom line
Being self-employed should not stop you from pursuing your commercial property goals.
Whether you’re purchasing your own business premises, expanding your operations or investing in commercial real estate, the key is working with a lender that understands how modern businesses operate and can assess income beyond a traditional payslip.
With the right preparation and supporting documentation, lenders can assess applications for commercial property loans based on a range of eligibility criteria and financial circumstances. This means that self-employed borrowers may be able to access commercial lending solutions that reflect the realities of running a business.
Important information: The information presented is general in nature and does not constitute professional advice. Eligibility criteria, fees and charges, terms and conditions apply. Bluestone Servicing Pty Limited ACN 122 698 328 Australian Credit Licence 390 183 on behalf of the Credit Provider, Permanent Custodians Limited ACN 001 426 384.
