Commercial Lease Doc Loan

What is a commercial lease doc loan?

  • A loan which involves using the lease income from a commercial or industrial property to service the debt on the property on a standalone basis - not your business financials. 
  • In a nutshell, if the rental income exceeds the repayments over a 12-month period, then it is possible to get the loan approved without the need to show business financials.
  • This type of loan is not very common; however, it can be found amongst a small number of lending institutions such as Better Choice Homes Loans.


Assessing Commercial Lease Doc Loans

- The lender will look at the debt and lease on its own. 

- This is good for businesses will unusual income streams that can't verify income.

- The applications strength comes from the tenants and the property - not the business.

- Lender assesses the debt on the property using the income of the lease only.  If the lease income can service the debt, the lender won't considering other debts.


Other considerations

- You can borrow up to 70% of the property value.

- No pay slips, tax returns, bank statements, BAS or financial statements are required.

- The security must be a commercial or industrial property.

- There must be at least 12 months left on the lease.

- Cannot be owner occupied.  A separate company must be renting the property.

- The lease income must cover the interest on your loan.


Example of a Lease Doc Loan:

- If a borrower had a tenant renting their commercial property, the leases income is counted as the cash flow to service the debt on the property.  Take the following example:


  • Commercial Property located at Revesby, Sydney
  • Property Value: $1,500,000
  • Debt/Loan: $965,000
  • Rental Income: $135,000 per annum
  • Lease Term: 5 by 5 year
  • Interest rate: 8.4%

The annual assessed interest for this loan is $965,000 x 8.4% = $81,060 per annum. 

The lease amount needs to be certain times more than the interest amount to be approved.


Get in contact for assistance with your lease doc loan.

Matthew Stack - finance broker

0423 237 242









#leasedocloan #commercialproperty #financebroker #revesby



Location: Australia

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