Commercial Property Finance Calculator
Calculate commercial real estate debt costs, LVR points, and monthly mortgage payments.
Evaluate Principal and Interest (P&I) vs Interest-Only (IO) structures, upfront establishment fees, and ongoing debt service security boundaries like DSCR thresholds.
Frequently Asked Questions
What LVR do Australian banks require for commercial property?
Australian banks generally restrict Loan-to-Value Ratios (LVR) for commercial real estate to between 60% and 70%. This is significantly more conservative than the 80% to 95% LVR structures frequently approved for residential property acquisitions.
What is Debt Service Coverage Ratio (DSCR) in commercial finance?
DSCR measures a property's capability to cover its annual debt commitments. It is calculated by dividing Net Operating Income by annual debt service obligations. Lenders typically look for a DSCR of 1.20x to 1.50x.
Disclaimer: The estimations and rules detailed on this platform do not constitute legal or financial advice. Always verify metrics with a certified property professional, licensed accountant, or qualified commercial lawyer before entering into or executing any lease contract.