Commercial Property Loan Calculator
Calculate commercial property loan repayments and investment returns. Free NZ commercial mortgage calculator with current rates, LVR options, and rental yield analysis.
💡 Commercial Property Tip: Most lenders require 30-35% deposit for commercial property, with maximum 70% LVR for investment properties.
Commercial Property Loan Calculator
Calculate your commercial property loan repayments and returns
Loan Summary
Monthly Payment
$4,826
Loan Amount
$650,000
LVR
65.0%
Total Interest
$797,800
Total Cost
$1,447,800
Investment Analysis
Current NZ Commercial Property Loan Rates (January 2025)
🏦 Major Banks
🏢 Specialist Lenders
🚀 Non-Bank Lenders
Commercial Property Finance by Type
🏢 Office Buildings
Max LVR: 70% (established tenants)
Min Value: Usually $500K+
Typical Yield: 5-8% gross
Best Locations: CBD, business parks
Key Factor: Lease quality and duration
🏪 Retail Properties
Max LVR: 65% (location dependent)
Min Value: $300K+
Typical Yield: 6-10% gross
Best Locations: Main streets, shopping centers
Key Factor: Foot traffic and accessibility
🏭 Industrial/Warehouse
Max LVR: 70% (modern facilities)
Min Value: $400K+
Typical Yield: 7-12% gross
Best Locations: Industrial areas, logistics hubs
Key Factor: Building quality and access
🏨 Hospitality
Max LVR: 60% (specialist lenders)
Min Value: $500K+
Typical Yield: 8-15% gross
Best Locations: Tourist areas, city centers
Key Factor: Tourism trends and competition
🏥 Medical/Professional
Max LVR: 70% (established practices)
Min Value: $400K+
Typical Yield: 6-9% gross
Best Locations: Medical precincts, suburbs
Key Factor: Tenant quality and fit-out
🛠️ Specialized Properties
Max LVR: 50-65% (case by case)
Min Value: Varies widely
Typical Yield: 8-20% gross
Examples: Car yards, service stations
Key Factor: Specialized use and marketability
Commercial Property LVR & Deposit Guide
📊 LVR Requirements by Property Type
💰 Deposit Calculator by Property Value
$500K Property
$1M Property
$2M Property
$5M Property
Commercial Property Investment Analysis
📈 Rental Yield Calculation
Gross Yield =
Annual Rent ÷ Property Value × 100
Net Yield =
(Annual Rent - Expenses) ÷ Property Value × 100
Good NZ Yields:
- • Office: 5-8% gross
- • Retail: 6-10% gross
- • Industrial: 7-12% gross
💰 Cash Flow Analysis
Net Cash Flow =
Rental Income - (Loan Payment + Expenses)
Common Expenses:
- • Insurance (0.2-0.5% of value)
- • Rates (1-3% of value)
- • Management (5-8% of rent)
- • Maintenance (1-2% of value)
- • Legal/Accounting
📊 Investment Ratios
Debt Service Coverage =
Net Operating Income ÷ Annual Debt Service
Target Ratios:
- • DSCR: 1.25+ (banks prefer 1.5+)
- • Cap Rate: 6-12% (market dependent)
- • Occupancy: 90%+ (stable properties)
- • Lease Duration: 3+ years avg
How to Use the Commercial Property Calculator
🧮 Basic Loan Calculation
- 1. Enter the total property purchase price
- 2. Input your available deposit amount
- 3. Select your preferred loan term
- 4. Enter current interest rate (check rates above)
- 5. Add rental income for investment analysis
- 6. Review monthly payments and cash flow
📈 Investment Analysis
- ✓ Check if rental yield meets your targets
- ✓ Ensure positive monthly cash flow
- ✓ Factor in vacancy periods (5-10%)
- ✓ Add property expenses to calculations
- ✓ Consider capital growth potential
- ✓ Compare with residential property returns
Commercial Property Lender Comparison
| Lender Type | Interest Rates | Max LVR | Approval Time | Best For |
|---|---|---|---|---|
| Big Four Banks | 7.25% - 9.25% | 70% | 4-8 weeks | Prime properties, established businesses |
| Regional Banks | 7.95% - 10.95% | 70% | 2-4 weeks | Local properties, relationship banking |
| Non-Bank Lenders | 8.95% - 18.95% | 80% | 1-3 weeks | Complex deals, higher LVR needed |
| Private Lenders | 12% - 25% | 85% | 1-2 weeks | Short-term, difficult situations |
Ready to Finance Commercial Property?
Get personalized commercial property loan quotes from New Zealand's top lenders. Compare rates, terms, and LVR options to find the best deal.
Commercial Property Loan Calculator FAQ
What deposit do I need for commercial property?
Most lenders require 30-35% deposit for commercial property purchases. Some specialist lenders may go up to 80% LVR (20% deposit) for prime properties with strong tenants, but this typically comes with higher interest rates.
How do commercial property loan rates compare to residential?
Commercial property loans are typically 1-2% higher than residential rates. This reflects the higher risk and complexity of commercial properties. Current commercial rates range from 7.25% to 18.95% depending on the lender and property type.
What's a good rental yield for commercial property?
Good commercial yields vary by property type: Office 5-8%, Retail 6-10%, Industrial 7-12%. Higher yields often reflect higher risk. Focus on net yield (after expenses) rather than gross yield for accurate investment analysis.
Can I use commercial property loan for owner-occupied premises?
Yes, many businesses buy their premises with commercial property loans. Owner-occupied properties often qualify for slightly better rates and terms since there's no tenant risk. You'll still need 30-35% deposit typically.
How long does commercial property loan approval take?
Approval times vary: Big banks 4-8 weeks, regional banks 2-4 weeks, non-bank lenders 1-3 weeks. Complex properties or deals can take longer. Having financial documents and property information ready speeds up the process.
What expenses should I factor into commercial property investment?
Key expenses include: Insurance (0.2-0.5% of value), rates (1-3% of value), property management (5-8% of rent), maintenance (1-2% of value), legal/accounting fees, and potential vacancy periods (budget 5-10%).