Why Lender Fit Can Matter as Much as the Headline Rate
Recent data indicates lending appetite remains present across parts of the Australian commercial property finance market. APRA reported authorised deposit-taking institutions’ commercial property exposures of $487.6 billion at March 2026, up 8.7% year-on-year, while CBRE’s H1 2026 survey of 44 commercial real estate lenders found 45% wanted to grow their exposures.
For borrowers and advisers, lender selection is therefore not only about locating available capital. It is also about understanding whether a lender’s current appetite aligns with the transaction.
45% of surveyed commercial real estate lenders wanted to grow their exposures in H1 2026.
Price is only one part of the deal
A low headline rate can look compelling, but commercial finance is rarely assessed on price alone. Loan structure, valuation approach, gearing, covenants, conditions precedent, amortisation, fees, timing and the lender’s view of the exit can all affect whether a facility suits the transaction.
A lender may be competitive for a straightforward, stabilised asset but have less appetite for a transitional property, a development with moving parts or a transaction with tight timing requirements.
Refinancing is becoming more transaction-specific
CBRE’s latest lender survey also found that performance-based variables have become more important in refinancing decisions.
In practice, that can mean greater attention to matters such as current property performance, leasing position, cash flow, debt structure and the credibility of the proposed repayment or refinance pathway.
For brokers and advisers, early lender selection can help reduce unnecessary delays. Even a well-prepared transaction may lose momentum if it is first presented to a lender whose credit parameters do not align with the scenario.
Compare the whole facility
When comparing facilities, relevant factors can include pricing, leverage, security requirements, documentation, flexibility, execution risk and exit.
The lowest-cost facility may suit some transactions. In others, different terms, flexibility or execution considerations may carry greater weight. The appropriate balance depends on the circumstances of the transaction.
A useful starting point is to understand the transaction requirements before comparing potential lenders.
Have a commercial finance scenario you would like to discuss? Contact the Allott Capital team.
General information only. This content does not constitute financial, legal or tax advice. Finance is subject to assessment, eligibility, fees, terms and lending criteria.
Sources: APRA, Quarterly ADI Property Exposures, March 2026; CBRE, H1 2026 Australian Lender Sentiment Survey.