Where the credit metrics drive the deal.
Property lending is one of the most metric-driven categories of commercial finance. The LVR, the interest cover, the weighted average lease term, the tenant covenant strength: each carries explicit thresholds that banks use to decide what they’ll lend, at what price, and on what terms.
The art is knowing which metric is binding for the specific deal in front of you, and how to structure around it. Sometimes the unlock is splitting the asset; sometimes it’s extending the lease; sometimes it’s taking the deal to a different lender entirely.
We bring 15+ years of commercial and institutional banking experience to that work, with deep familiarity with how every major lender approaches the major property categories.
Across the property spectrum
Each category has its own credit appetite, LVR profile and lender mix. We work across all of them.
Standard Commercial
Warehouses, industrial, distribution, light manufacturing. The bread and butter of commercial property lending; cleanest credit metrics and broadest lender appetite.
Office & Retail
A-Grade, B/C-Grade office and strip retail. LVR thresholds vary materially by grade and location; tenant covenant and lease structure carry significant weight.
Investment Property
Residential investment properties and portfolios. Both standalone and as part of broader commercial lending packages with structured cross-collateralisation.
Accommodation Assets
Motels, serviced apartments, short-term accommodation and boarding houses. Going-concern lending where the trading business and the property are inseparable.
Specialist Property
Co-working spaces, childcare centres, medical centres, service stations and other specialist asset classes. Specialist lenders, specialist metrics.
Property Development
Residential and commercial development funding. Construction facilities, presale requirements, end-debt take-out and developer track record all in play.
The numbers banks actually look at
Four metrics drive most property lending decisions. Get these right at the credit pack stage and the deal flows; miss them and it stalls.
Loan to Value Ratio (LVR)
The headline number. Sits at 65% for standard commercial; some first-tier lenders permitting 70% provided this reduces to 65% by end of term. Varies materially by property type.
Interest Cover Ratio (ICR)
The serviceability check. Most lenders require >1.50x based on net rental for standard commercial assets, and >2.00x for specialist or B/C-grade office property.
Weighted Average Lease Term (WALT)
For sizeable lending (>$5m) most lenders require WALT above 1 year. Sometimes the loan tenor can exceed WALT for fully secured lending against standard commercial.
Sponsor Recourse
Personal guarantees from the sponsor. May be waived for smaller or standard lending arrangements; almost always required for higher-LVR or specialist property lending.
Typical maximum LVRs
Indicative LVRs by property category at standard policy. Where the deal sits within these ranges depends on the specifics of the asset, tenant covenant and sponsor profile.
| Property Type | Typical LVR |
|---|---|
| Standard Commercial | 65% |
| A-Grade Office | 60% |
| B/C-Grade Office | 50% |
| Strip Retail | 55–65% |
| Residential Investment | 80% |
| Luxury Residential | 70% |
Got a property in your sights?
Send us the asset detail, the tenancy schedule and your equity contribution. We’ll come back with an indicative funding view inside 24 hours.