Deciding on refinancing commercial property is always challenging. So, let’s unpack the complexities of commercial property refinancing. Generally, commercial property refinancing can be a strategic move to search for the best refinancing commercial property loan deals that underscore getting a lower interest rate, meaning savings on repayments, besides having the opportunity to access equity if available for business expansion or purchasing another asset. However, this is not always the case; many commercial property owners and investors make costly mistakes because many other financial factors get ignored in the temptation of getting a lower interest rate that can turn what should be a financial advantage into a burden.
Understanding these pitfalls and working with Senior Mortgage Broker Gurdeep Kumar from VOXFIN can help you save money and secure the best commercial property refinancing solutions with the lowest interest rate and personalised to your needs. Gurdeep is a member of the Finance Brokers Association of Australia (FBAA) with over 8 years of specialised experience in Australian commercial and SMSF lending.
The ‘No-Doc’ Eligibility Checklist for You
Before applying, ensure your business meets these professional benchmarks to increase your chances of a First-Time-Right approval –
ABN Maturity
Your ABN/ACN should ideally be active and GST-registered for a minimum of 2 years.
Equity Buffer
Be prepared for a maximum LVR of 65-70%. Higher equity reduces the lender’s risk when income documents are absent.
Clean Credit Report
Ensure no active defaults, court judgments, or hardship flags on your Equifax or Experian credit files.
Tax Portal Status
While income docs aren’t required, many lenders now require a clean Integrated Client Account (ICA) statement from the ATO showing no overdue tax debts.
Exit Strategy
Always have a 2-year plan to transition back to a Full-Doc loan once your financial documents are updated to secure the absolute lowest market rates.
Expert refinancing commercial brokers at VOXFIN have been helping Australian business owners and investors get the best commercial refinancing deals in Melbourne, Sydney, Brisbane and Adelaide, as well as the regional parts of Victoria and Australia.
We aim to bring our clients the proper financial knowledge and information to help them create wealth. We love assisting our clients in getting more prosperous and wealthier. We strive to build enduring professional relationships.
Literally, “NO INCOME DOCUMENT” is required to refinance commercial property now. Yes, that’s right, no income document is needed to refinance a commercial property at VOXFIN. As long as the following conditions are met:
- The last 12 months of repayment history should be excellent, with no late payments, no missed repayments, no defaults, no hardship, etc.
- A credit score should be the perfect score
- The company and the guarantors must be free from any legal charges or court cases, etc
- Possibly the lowest interest rate on refinancing commercial property, more power to investors
- Please be advised that the above terms and conditions of lenders and banks can change at any time without prior notification.
1. Fear of Financial Documents Readiness
One of the most common mistakes is to continue with your current lender without exploring other options because many business owners fear not having the financial documents readily available. Commercial property loans generally have higher interest rates, fees, and charges. Many investors mainly focus on getting a commercial loan with less paperwork; we get that.
However, it’s much simpler to refinance and perhaps needs as little as no-doc if the repayments on the existing commercial loan are maintained without any missed payments and a high credit score.
Solutions: Instead of sitting quietly on your current commercial loan, work with a mortgage broker expert like Gurdeep Kumar at VOXFIN, who has access to multiple commercial property lenders with flexible documents from full-doc to low-doc to no-doc refinancing commercial property loans and can negotiate the most competitive rate on your behalf.
Our clients’ Google and Facebook 5-star satisfactory reviews have made us Melbourne’s most trusted commercial brokers!
2. Not Knowing the Loan Fees and Hidden Costs
While the focus is to get the lowest interest rate, as always, many borrowers tend to overlook the additional costs of refinancing, such as:
- Application fees: The application fees are generally high on commercial property loans, depending on the risk factors.
- Valuation fees: This is another cost from the borrower’s pocket. Sometimes, it can be negotiated and waived, but it does not always happen as it depends on the chosen lender’s current offers and policies
- Break costs:If the existing loan is fixed or has any minimum stay condition
- Legal and settlement fees: Again, it depends on the chosen lender and policies
These fees can be negotiated and waived, but not always. On the contrary, these fees and costs can sometimes outweigh the savings from a lower rate.
Real-World Case Study
The Power of Equity and the Clean Repayment Advantage
Recently, a VOXFIN client, a long-term retail property owner in Melbourne, wanted to refinance their $1.2M commercial loan to unlock capital for a new equipment purchase. Despite having a complex family trust structure and pending 2024 tax returns, they were eligible for a no-doc refinance.
The Strategy We Recommended
Because the client maintained a clean 12-month repayment history and the Loan-to-Value Ratio (LVR) was under 65%, we bypassed the need for full financial statements.
The Result
We secured a competitive variable rate that saved them $850 per month in interest, plus a $4,000 refinancing cashback, demonstrating that for established owners, your repayment reputation is often your most valuable asset.
Need Refinance Solutions? Talk to us at 03 70652000.
You may also drop your queries at info@voxfin.com.au
Our Expert Commercial Mortgage Brokers of Melbourne would love to assist you.
This content is purely for educational purposes and guidance. It does not constitute financial advice. Lending criteria for no-doc or alt-doc products are subject to individual lender policy and ASIC regulatory requirements.
