Investing in commercial real estate can be a smart move, especially in a growing area like Logan, Queensland. But before diving in, it’s important to understand how commercial property loans work, what lenders expect, and how to position yourself for a successful application. Whether you’re buying a warehouse, retail space, or office unit, having a solid grasp on financing options is critical.

This guide breaks down everything you need to know about commercial property loans in Logan, from loan types to eligibility criteria and what to watch out for. Let’s dive in and explore your investment opportunities with confidence.

What Are Commercial Property Loans?

A commercial property loan is a type of financing used to purchase real estate for business or investment purposes. Unlike residential loans, these are assessed based on the income potential of the property and the financial strength of the borrower or business.

You can use a commercial loan to buy properties such as:

• Office buildings
  
  
• Warehouses
  
  
• Retail stores
  
  
• Factories or industrial premises

In Logan, the demand for commercial properties is rising thanks to rapid infrastructure development and business growth. That’s why securing the right loan structure is key.

Why Invest in Commercial Property in Logan, QLD?

Logan is one of the fastest-growing regions in South East Queensland. Positioned between Brisbane and the Gold Coast, it offers excellent access to major highways and commercial hubs.

Reasons investors are eyeing Logan:

• Affordable entry price compared to Brisbane and Gold Coast
  
  
• Strategic location for logistics and retail businesses
  
  
• Support from Logan City Council for commercial development
  
  
• Growing population and infrastructure investment

These factors create strong rental demand and the potential for long-term capital growth, making Logan an appealing spot for commercial investors.

Types of Commercial Property Loans in Australia

Lenders typically offer several types of loans depending on the size, purpose, and complexity of the deal.

1. Standard Commercial Loan

Used to buy established commercial properties, usually on long-term lease. Common with retail and office spaces.

2. Low Doc Commercial Loan

Ideal for self-employed borrowers with limited financial documents. Comes with higher interest rates and lower LVRs.

3. Lease Doc Loan

Assessed on rental income from the property, not the borrower’s income. Great for investors with tenants locked in.

4. Construction Loan

Used for developing new commercial properties. Funds are released in stages based on building progress.

5. SMSF Commercial Loan

For investors looking to purchase commercial property through their self-managed super fund (SMSF). Complex but tax-efficient.

How Much Can You Borrow?

The amount depends on the lender, your credit profile, and the property type. In general:

• Maximum Loan-to-Value Ratio (LVR): 65% – 80%
  
  
• Loan terms: 15–25 years
  
  
• Interest rates: Generally higher than residential loans
  
  
• Deposit required: 20% – 35%

In Logan, lenders may offer better terms for properties in high-demand commercial zones or new developments with long-term tenants.

What Lenders Look for in Logan Investors

When applying for commercial property loans in Logan, here’s what lenders will assess:

Financial Documentation:

• Company financials (last 2 years)
  
  
• Tax returns
  
  
• Bank statements
  
  
• Lease agreements (if applicable)
  
  

Property Viability:

• Location and property type
  
  
• Tenant quality and lease term
  
  
• Zoning and future development potential
  
  

Creditworthiness:

• Credit history of the borrower or business
  
  
• Existing debts or liabilities
  
  
• Asset and liability statements

For first-time investors in Logan, getting pre-approved by a broker like Cube Loans can streamline the process and uncover better rates.

How to Prepare for a Commercial Loan Application

Before applying, make sure you’re ready. Follow these steps:

• Review your credit report and fix any errors
  
  
• Organise financials: tax returns, profit/loss statements
  
  
• Get a property valuation or market appraisal
  
  
• Prepare a business or investment plan (if applicable)
  
  
• Speak with a mortgage broker for expert advice

Being prepared increases your chances of approval and helps you compare competitive offers.

Pros and Cons of Commercial Property Loans

Benefits

• Higher rental returns than residential
  
  
• Longer lease terms (often 3–10 years)
  
  
• Tenants often cover outgoings (maintenance, rates)
  
  
• Potential for capital growth in areas like Logan
  
  

Risks

• Higher entry costs and interest rates
  
  
• Vacancy periods may be longer
  
  
• Property value linked to business activity in the area
  
  
• Lenders may require personal or business guarantees

Working with a local Logan mortgage broker helps manage these risks and choose the right loan structure.

Refinancing Commercial Loans in Logan

Already own a commercial property in Logan? Refinancing could lower your interest rate or free up equity for another investment. Reasons to refinance include:

• Better loan terms
  
  
• Access to working capital
  
  
• Change in property value
  
  
• Business growth or expansion
  
  

Cube Loans can help you review your current loan and identify if refinancing is the right move.

Why Use a Mortgage Broker in Logan?

Navigating commercial loans is complex. A local broker like Cube Loans offers:

• Access to a panel of over 30 lenders
  
  
• Knowledge of the Logan property market
  
  
• Assistance with documentation and applications
  
  
• Ability to negotiate better rates and terms
  
  
• Help with pre-approval, refinancing, and future loans

Having an expert in your corner can make all the difference in securing your investment loan successfully.

FAQs

What is the difference between commercial and residential property loans?

Commercial loans are used for business-related properties and are assessed differently than residential loans. They usually have higher interest rates and stricter eligibility requirements.

How much deposit do I need for a commercial property loan in Logan?

Generally, you’ll need a deposit of 20%–35%, depending on the property type and lender. Some may offer higher LVRs for low-risk investments.

Can I get a commercial loan with bad credit?

Yes, but expect stricter conditions, higher interest rates, and a lower LVR. Working with a broker improves your chances of finding a suitable lender.

Are commercial loans tax-deductible in Australia?

Interest on commercial property loans is usually tax-deductible, along with other expenses like maintenance and depreciation. Speak to your accountant for tailored advice.

Can I buy commercial property through my SMSF?

Yes, but it must meet strict conditions under superannuation law. You’ll need a specific type of SMSF loan and must use the property for business purposes.

What is a lease doc commercial loan?

A lease doc loan is based on rental income, not the borrower’s personal income. It’s suitable for investment properties with stable tenants and long leases.

How long does it take to get a commercial loan approved?

Approval can take 2–6 weeks depending on the lender, loan complexity, and how quickly you provide required documents. Pre-approval speeds up the process.

Final Thoughts

Investing in Logan’s commercial real estate market is a strategic choice, but only if you understand the ins and outs of commercial property loans. From choosing the right loan type to preparing your application, having expert support is key.

Cube Loans is here to help you every step of the way. Our experienced Logan mortgage brokers know the local market, lender requirements, and how to make your investment journey smoother.

Call us today at 1800 774 756, or visit www.cubeloans.com.au to get started. Let’s find the right commercial property loan for your goals in Logan, QLD.