Quick answer
Commercial property finance is lending secured over business premises such as shops, offices, warehouses and industrial units. In New Zealand, banks offer it on longer terms but can take weeks to approve. Specialist and private lenders assess the property, the purpose and the exit more quickly, and up to $5m is possible within 24–48 hours once valuation and documentation are complete. It's used to buy premises, refinance, or release equity for the business.
Key points
- Secured over shops, offices, warehouses and industrial units.
- Used to buy, refinance or release equity.
- Specialist lenders move faster than banks.
- Valuation and lease details drive the amount.
- Typical size
- $20,000 to $5,000,000
- Security
- First or second mortgage over commercial property
- Speed
- Up to $5m possible within 24–48 hours
- Purpose
- Business purposes only
Business premises are often the most valuable asset a business owner holds. Commercial property finance lets you buy them, refinance them or unlock the equity in them. The bank is one option, but not always the fastest.
What counts as commercial property
- Retail: shops, shopping strips and showrooms.
- Office: standalone offices, suites and mixed-use buildings.
- Industrial: warehouses, factories, workshops and yards.
- Hospitality: cafés, restaurants, bars and accommodation.
- Specialised: childcare centres, medical suites, service stations.
Specialised property can be financed too, but lenders may lend a smaller share of value because it’s harder to resell.
Three common reasons to borrow
Buying premises
Owning premises can stabilise costs and build equity. When a property comes up and the vendor wants a quick settlement, specialist lenders can move faster than a bank, often with a plan to refinance to a bank once the purchase is complete.
Refinancing
Businesses refinance commercial property to consolidate debt, release equity, move away from a bank that’s reducing its exposure, or replace a short-term loan with a longer one. See business refinance.
Releasing equity
If the premises have risen in value, the equity can fund growth: a second site, new equipment, stock, or buying out a partner.
How lenders value commercial security
| Factor | Effect on lending |
|---|---|
| Lease length and tenant strength | Long leases to strong tenants support higher loans |
| Vacancy | Vacant property usually means lower loan-to-value |
| Location | Main centres and strong regional towns are preferred |
| Building condition and seismic rating | Earthquake-prone buildings can limit lending |
| Zoning and use | Flexible uses are easier to finance |
New Zealand’s earthquake-prone building rules matter here. A building with a low seismic rating may be harder to finance or need a plan for strengthening.
How fast can specialist lenders settle?
Up to $5m is possible within 24–48 hours once the valuation, title work, signing and legal certification are complete. The valuation usually takes the longest, especially for larger or specialised properties. Having recent valuations, lease documents and building reports ready can shave days off.
Bank or specialist?
| Bank | Specialist lender | |
|---|---|---|
| Speed | Weeks | Days |
| Term | Long, often 15 to 25 years | Short to medium |
| Paperwork | Full financials and tax returns | Property, purpose and exit focused |
| Flexibility | Lower | Higher |
| Cost | Lower | Higher |
Many businesses use both: a specialist lender to move fast, then a bank to hold the property long term.
An illustrative example
A Christchurch engineering firm leases a workshop and yard. The landlord offers to sell it for $1.9 million but has another buyer lined up and wants settlement within three weeks. The bank is supportive but needs updated accounts and a valuation that will take six weeks.
The firm uses a specialist lender to buy the site, secured over the workshop and the owners’ home, with a 12-month term. Once the bank has the updated accounts, it refinances the property onto a long-term commercial loan. The firm stops paying rent and starts building equity.
Keep it moving
Get the record of title, any lease documents, recent rates notices and building reports together before the first call. The funding speed finder can show whether property-backed or unsecured finance is quicker for your deadline.
Documents that save days on a commercial deal
Commercial valuations take longer than residential ones because the valuer has to look at leases, income and building condition as well as comparable sales. You can shorten that step considerably by having the following ready before the valuer is booked: the current lease and any variations, a summary of the rent being paid and when it was last reviewed, the most recent rates notice, any building warrant of fitness, and the latest seismic assessment if the building has one. If the property is vacant, a short note on its condition, recent maintenance and how long it has been empty helps the valuer and the lender reach a view sooner.
It also helps to know what is owing on the title before the first call. Ask your current lender for a balance and, if the property will be refinanced, a payout figure. Lenders often move fastest on deals where the borrower already has the paperwork in one folder, because nobody is waiting on a third party to reply.
Ask a real person
Asking what’s possible doesn’t touch your credit file, and we don’t spray your enquiry around a list of lenders. A real person reads it, looks at the property and your timeline, and calls you with a plan that can settle. Start your enquiry.
Frequently asked questions
How much can I borrow against commercial property?
Lenders usually lend a lower share of value against commercial property than residential. The exact limit depends on the property type, location, condition and whether it's leased.
Does the tenant matter?
Yes. A long lease to a strong tenant supports the value and the lender's comfort. A vacant property or short lease usually means a lower loan amount.
Can I borrow against premises my own business occupies?
Yes, owner-occupied commercial property is common security. The lender will look at both the property and the business that pays the rent.
Why use a specialist lender instead of a bank?
Speed and flexibility. Specialist lenders can settle in days, accept situations banks won't, and suit short-term needs. Many borrowers refinance to a bank later.