Commercial refinancing means replacing an existing commercial loan with a new one, typically to improve loan terms, lower repayments, or free up working capital.
In Queensland, small and medium businesses are key drivers of the state’s economy, especially in industries like construction, retail, agriculture, and tourism. For many of these businesses, refinancing can ease repayment pressure, improve cash flow, and support future growth as commercial property values continue to rise.
Mortgage brokers play an important role in simplifying the commercial refinancing process and helping business owners find cost-effective loan solutions. At Zest Mortgage Solutions, our brokers have supported Queensland businesses for over a decade by comparing lenders, managing the application process, and offering clear advice aligned with each business’s financial goals.
In this guide, we’ll explain how commercial refinancing works and how to apply for it as a Queensland business owner.
What is Commercial Refinancing?
Commercial refinancing is when a business owner replaces their current commercial loan with a new one, usually to get better terms, reduce repayments, or free up cash. The new loan pays off the old one, and the business continues repaying under the new agreement.
Unlike residential refinancing, which is tied to personal home loans, commercial refinancing deals with loans secured against business or investment properties like warehouses, office buildings, retail spaces, or multi-unit properties.
These loans are generally larger, have different eligibility criteria, and are often more complex in structure. They also consider the income the property or business generates, not just the borrower's personal financials.
Benefits of Commercial Refinancing
If you're running a business in Queensland, your financing needs can shift quickly. Refinancing gives you the flexibility to realign your loan with where your business is headed, not where it was.
Here are the key benefits of commercial refinancing for business owners in Queensland:
- Lower interest rates: Save on interest by locking in better rates than your original loan.
- Improved cash flow: Restructuring loan terms can reduce your monthly repayments.
- Access to equity: Tap into your property’s increased value to fund growth or cover expenses.
- Debt consolidation: Combine multiple business debts into one manageable loan.
- Switch lenders or loan types: Move to a lender with better service or choose a more flexible loan structure.
- Align financing with business goals: Adjust terms to suit new projects, expansion, or downsizing.
- Exit restrictive loan conditions: Refinance away from loans with harsh covenants or inflexible terms.
Why Queensland Business Owners Refinance Commercial Loans
Local Economic and Property Trends
Queensland’s economy remains strong in 2025, with the state forecasted to grow by 2.8%, supported by rising tourism, infrastructure projects, and interstate migration. Brisbane continues to attract commercial investment, especially in logistics and office space.
Commercial property vacancy rates in Brisbane remain tight. According to the Property Council of Australia, the Brisbane CBD office vacancy rate was 11.7% in January 2025, down from 12.9% a year earlier, showing stronger leasing demand and improving market conditions.
Market-Specific Reasons
- Interest rate shifts: While variable commercial loan rates in early 2025 are averaging 6.8%–7.4%, many borrowers are refinancing to lock in lower rates or shift to fixed-rate terms.
- Brisbane commercial property values have increased, particularly in industrial sectors. CoreLogic reports an average annual growth of 5.1% in Brisbane’s industrial sector property prices as of Q1 2025.
- Rental yields remain strong in industrial and retail segments, making refinancing a practical option to access equity for reinvestment.
Industry Examples
- Retail: Businesses in suburban retail strips are refinancing to renovate or expand as consumer spending rebounds.
- Industrial: Warehousing and logistics operators are refinancing to fund equipment upgrades and facility expansions.
- Hospitality: Many regional hotels and motels have refinanced their commercial loans post-COVID to restructure repayments and improve cash flow.
With property values rising and loan products evolving, commercial refinancing in Queensland is being used not just to save on interest, but to support real business growth in 2025 and beyond.
How Commercial Refinancing Works in Queensland
The refinancing process typically includes reviewing your financials, selecting a suitable loan, applying, property valuation, lender approval, and final settlement. Here’s an overview of the process:
Typical Loan Terms and Structures
- Loan terms: 3 to 25 years
- Repayment options: Interest-only or principal & interest
- Interest types: Fixed, variable, or split
- Security: Usually commercial property, sometimes combined with business assets or personal guarantees
Role of the Titles Registry and State-Based Fees
In commercial refinancing, the Queensland Titles Registry is responsible for updating the mortgage records when a commercial loan is discharged and replaced by a new one. This involves lodging legal documents to remove the old mortgage and register the new one against the property title.
Key state-based fees include:
- Discharge of mortgage fee: $224
- Mortgage registration fee: $212
These fees are standard for commercial property loans and are payable regardless of the lender used. You can find the latest fees on the Queensland Government Titles Registry Fee.
Timeline from Application to Settlement (Commercial Refinancing in Queensland)
- Pre-assessment & document preparation: 1–2 weeks
Gathering required financials such as Tax Returns, Financial Statements, lease agreements, and existing loan details. - Commercial property valuation: 5–10 business days
The lender orders a valuation to confirm the property’s current market value and rental income potential. - Credit assessment & approval: 2–4 weeks
Lenders assess the business’s financial position, credit history, and the property’s suitability as security. - Settlement: 1 week
Final documentation is signed, the existing loan is paid out, and the new loan is registered with the Titles Registry.
Total timeframe: Typically 5–8 weeks, but can vary based on the complexity of the loan structure, the type of lender (bank vs non-bank), and the responsiveness of the borrower.
Who Is Eligible for Commercial Refinancing?
Not every business loan can be refinanced, and lenders in Queensland follow specific criteria. Here's what you need to qualify for commercial refinancing in the state:
Eligible Business Types and Property Criteria
- Must operate as a registered business (ABN) in Australia
- Applies to sole traders, partnerships, companies, and trusts
- The property must be zoned for commercial use (e.g. retail shop, office, warehouse)
- Mixed-use properties with a commercial portion may also be eligible
Documents Required
- Two years of tax returns and financial statements
- Current loan contract and repayment history
- Lease agreements (if the property is tenanted)
- Cash flow statement, profit & loss statement, and balance sheet
- 3–6 months of business bank statements
- Personal statement and ID documents (e.g. driver’s licence or birth certificate)
Lenders assess eligibility based on business performance, credit history, and the commercial property’s current value. Full-doc applications offer lower rates, while low-doc options are available for those with limited financial records.
Not sure if your business qualifies for commercial refinancing? Speak with our expert Queensland mortgage brokers at Zest Mortgage Solutions. We’ll assess your eligibility, review your options, and guide you every step of the way. Call us at (07) 3461 6499 or visit zestmortgagesolutions.com.au for a free consultation to get started.
How to Apply for Commercial Refinancing
Applying for commercial refinancing in Queensland isn’t overly complicated, but it does require careful planning and attention to detail. Following the right steps ensures you get favourable loan terms and avoid delays or added costs.
Step 1: Review Your Current Loan and Financial Position
Start by assessing your current lender’s terms, including your repayment schedule, repayment term, and loan repayments. Understanding your business’s financial health helps determine whether refinancing will improve your situation or create added costs.
Step 2: Compare Loan Options and Features
Look at different loan options from banks, non-bank lenders, and online providers. Pay close attention to loan features like extra repayments, additional repayments, offset accounts, and redraw facilities that align with your business needs.
Step 3: Choose the Right Type of Loan
Decide on a suitable type of loan—fixed, variable, or split—based on your cash flow and risk comfort. Many businesses prefer flexible loan products that allow easier adjustments as their financial situation changes.
Step 4: Engage a Commercial Mortgage Broker
A commercial mortgage broker can streamline the loan application process by comparing lenders, preparing your documents, and negotiating better rates. They work closely with the lender’s credit team to help secure favourable loan terms.
Step 5: Submit the Loan Application
Submit complete loan applications including all required documentation such as Tax Returns, purchase price of the property, and business financials. Incomplete or inconsistent applications can slow the process or lead to rejection.
Step 6: Order a Commercial Valuation
Lenders will order commercial valuations to determine the current value of the property you're refinancing. This step is crucial, especially for a commercial property purchase or refinance, as it impacts your borrowing capacity and potential Lenders Mortgage Insurance (LMI) costs.
Step 7: Wait for Credit Assessment and Approval
The lender’s credit team will review your financial documents, business structure, and the real estate securing the loan. If the loan interest rates and risk profile meet their criteria, they’ll issue conditional approval, often with competitive interest rates.
Step 8: Review Costs and Fees
Before accepting the offer, check for application fees, establishment fee, ongoing costs, and any break costs from your current lender. Knowing the full cost upfront helps you compare deals more accurately.
Step 9: Settlement and Loan Transfer
Once approved, you’ll sign the new contract, and your current lender will be paid out. The Titles Registry will update your mortgage details, and your new repayment schedule begins under the refinanced terms.
Ready to start your commercial refinancing application? Let our experienced Queensland mortgage brokers at Zest Mortgage Solutions handle the paperwork, lender comparisons, and approval process for you. Call (07) 3461 6499 for a free consultation, or visit zestmortgagesolutions.com.au to begin your application today.
Frequently Asked Questions (FAQs)
What is a commercial refinance?
A commercial refinance involves replacing your current commercial loan with a new one, usually to access better interest rates, lower repayments, or release equity tied up in the property.
What is the difference between a commercial loan and a regular loan?
A commercial loan is used to finance business-related properties or operations, while a regular loan (like a home loan) is used for residential property and personal use.
How can brokers help with commercial loans and refinancing?
Brokers compare loan options, manage the loan application process, prepare required documents, and negotiate with lenders to help business owners find the most suitable and cost-effective finance solutions.
What are the different types of commercial refinancing loans brokers can help with?
Brokers can assist with a range of loans including fixed-rate, variable-rate, interest-only, full-doc, low-doc, lease-doc, and loans from non-bank or specialty lenders depending on the business’s needs.
Final Thoughts
If your business loan no longer fits your needs, 2025 could be the right time to explore commercial refinancing. Whether you're aiming for better rates, more flexible loan terms, or simply want to improve cash flow, refinancing can be a smart step forward.
At Zest Mortgage Solutions, we offer free consultations to help you understand your options, whether it's a commercial loan or even a home loan.
Our team of experienced Queensland mortgage brokers is here to support you with clear advice and tailored solutions. With offices in Ipswich and Springfield, we proudly serve business owners across Queensland. Call us today at (07) 3461 6499 or visit zestmortgagesolutions.com.au to get started.
