Already own commercial property? Here's how a refinance could fund your next move
Business owners who purchased commercial property three to seven years ago are often sitting on a financial position that hasn't been reviewed since settlement. Interest rates have moved, property values have shifted, lender products have changed, and the equity built up in the asset may now be sufficient to fund a material next step: a second property, a business expansion, a fit-out, or additional working capital.
According to the ATO's latest SMSF statistics, Australian SMSFs alone held over $1 trillion in assets as at June 2025, with 11.2 percent allocated to non-residential commercial property. Across the broader owner-occupier commercial market, significant equity has accumulated in properties purchased during the period of sustained value growth across industrial, medical, and retail assets. For many owners, that equity is the most underutilised asset on their balance sheet.
Each week we speak with business owners who refinance for two reasons: to improve the terms of their existing finance, and to access equity that opens up something new. Often both happen in the same refinance. This article covers what a commercial property refinance involves, what changes in the market since your original settlement may mean for your current position, and what becomes possible when equity is released.
Why business owners refinance commercial property
A refinance is not a single type of deal. The mechanics and the motivation vary, and understanding which applies to your situation determines how the process should be approached.
Rate and structure improvement. The commercial lending market has changed materially over the past three to five years. Lenders who weren't competitive or didn't have appetite for your asset type at the time of your original purchase may now be the right fit. A broker who actively works the full commercial panel can identify whether a better rate, a longer interest-only period, a lower LVR covenant, or a different loan structure is available given your current position and the lender market as it stands today. In some cases, the rate improvement alone justifies the refinance.
Equity release. If your property has increased in value since purchase, your LVR has reduced even if your loan balance has stayed the same or decreased. That gap between the current value and the outstanding loan is accessible equity, and a refinance is the mechanism for releasing it. The released equity can be used as a deposit on a second property, to fund a business fit-out or expansion, or as working capital depending on how the structure is set up.
Debt consolidation. Some business owners use a commercial refinance to consolidate multiple facilities, a commercial mortgage, a business loan, and an equipment finance facility, into a single structure with cleaner terms and a more manageable repayment profile.
What has changed since your original settlement
The commercial lending market in 2025 and 2026 looks different to 2019 or 2021. Several factors are relevant to understanding whether your current finance is still the right structure.
Lender appetite across asset classes has shifted. Industrial and owner-occupier assets, including medical premises, continue to attract strong lender interest. Lenders who were cautious during the rate cycle of 2022 to 2023 have adjusted their credit positions, and new entrants to the commercial panel have created additional options that didn't exist at the time of original settlement.
Property values in key industrial and medical corridors have increased in most capital cities over the past five years. If your property is in an area that has seen value growth, your equity position may be materially stronger than it was at settlement without you having done anything to create it.
The commercial interest rate environment has also changed. Three RBA rate reductions in 2025 improved borrowing conditions across the market. Whether that's reflected in your current facility depends on your rate type and the terms of your existing agreement.
Conversation from the Desk
A warehouse owner in Perth's industrial north had purchased his property in 2019 with a five-year fixed rate that had since expired. His loan had reverted to a variable rate that hadn't been reviewed. He came to us because he was considering purchasing a second property and wanted to understand whether the equity in his existing warehouse could contribute to the deposit. When we assessed his position, the property had increased in value by approximately 35 percent since purchase, and his outstanding loan balance represented an LVR well below his original purchase LVR. We identified a lender on our panel whose rate and structure were more competitive than his current facility, and outlined how the equity release could be structured alongside the refinance to position him for the second acquisition without requiring additional cash. The refinance and equity release were handled as a single refinance.
What the refinance process involves
A commercial property refinance follows a similar process to an original purchase from a finance perspective, with some differences.
The broker reviews your existing facility, including the rate, structure, loan terms, and any break costs or exit fees associated with leaving your current lender. This assessment determines whether a refinance makes financial sense before the process begins.
A current valuation is required. The lender will commission an independent valuation of the property, which establishes the current market value and therefore the available equity position. The valuer selection matters here for the same reasons it does in a purchase.
The new lender conducts a credit assessment based on your current business financials and the updated property valuation. If the purpose of the refinance includes equity release, the application includes documentation of how the released funds will be used.
Settlement of a commercial refinance typically takes four to eight weeks from application depending on the lender, the complexity of the deal, and any requirements specific to the asset type.
Knowing when a refinance makes financial sense
A refinance is not appropriate in every situation. Break costs on a fixed rate facility, exit fees, establishment fees on the new facility, and legal costs all need to be factored into the assessment. A specialist broker runs these numbers clearly before recommending a course of action.
The scenarios where a refinance most clearly makes sense are where the rate improvement is material enough to offset the costs within a reasonable period, where equity release enables a specific and financially sound next step, or where the existing loan structure has become suboptimal relative to the business's current position and what the market now offers.
Commercial mortgage refinancing for Australian business owners
Ardent Capital Group works with commercial property owners across industrial, medical, and retail asset classes on refinancing, equity release, and portfolio restructuring. We review your existing facility against the current lender market, assess your equity position, and structure the deal to achieve the right outcome for your specific situation. If you haven't reviewed your commercial finance in the past two to three years, a conversation with our team is the right starting point.
Written by
Nick Chong
Director & Founder, Ardent Capital Group
Nick Chong founded Ardent Capital Group to give business owners and investors direct access to commercial finance done properly. He works across purchase, refinance and equity release, structuring deals with the right lender for the situation rather than the first one to say yes. If you want a clear read on your borrowing position, that conversation starts with a call.
