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Commercial equity extractor · Western Sydney

Commercial Cash-Out Refinance Sydney

By the Mortgagefy Team · Published 19 Oct 2026 · Last reviewed 19 Oct 2026

You own a commercial property with 40-50% equity sitting in it. A cash-out refinance (sometimes called an equity release) converts that equity into working capital for your business, a deposit on another property, or the acquisition of a competitor.

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General information only, not financial advice. Conditions apply.

How it works

A commercial cash-out refinance replaces your existing commercial loan with a larger one against the same property. The difference between old balance and new loan is cash out — subject to LVR limits (typically 65-70% max for cash-out).

Lenders ask for a declared purpose. Business reinvestment, equipment purchase, deposit on another commercial property, acquisition and consolidation of other debt are all common accepted purposes. Pure consumption spending is less acceptable.

The deal underwrites against both the property (LVR ceiling) and the borrower (serviceability of the new, larger loan). Business trading figures must support the bigger payment at today's rates — not the historic rates on the loan being refinanced.

What commercial lenders actually look at

Current LVR vs cash-out LVR

Your current loan + new cash out must stay within the lender's cash-out cap (65-70% typical).

Declared purpose

Business investment, acquisition, deposit, consolidation — all accepted. Pure consumption less so.

Serviceability at new rate

Business income must cover the new (larger) loan at today's rates with a servicing buffer.

Property valuation

A fresh valuation determines available equity. Older valuations are discounted.

Ways to hold the property

Structure sits between you, your accountant and your lender — tax, asset protection and succession all matter. Four common patterns we see with Western Sydney owner-occupiers:

Personal name

Simplest to arrange. Interest can be deductible against rental income. Little asset protection from a trading-business perspective.

Company

Common for long-term holdings inside a corporate group. Flat company tax rate on rent; no CGT discount at the company level.

Trust (discretionary or unit)

Flexible for distributing rental income and separating property from trading-business risk. Lenders are comfortable with clean trust documentation.

SMSF — leased back at market rent

An SMSF can borrow (via a Limited Recourse Borrowing Arrangement) to buy premises that meet the ATO's "business real property" test and lease them to your business at arm's-length market rent. High-level only — a licensed SMSF specialist and your accountant must confirm your situation.

This is general information only, not financial, tax or legal advice. Confirm your situation with a licensed credit adviser and accountant.

Who this suits

Owners with significant equity (40%+) in their commercial property
Businesses needing growth capital without raising external equity
Buyers using commercial equity as deposit for another commercial property
Owners consolidating multiple business debts into one facility
Multi-site operators funding acquisitions

Run your commercial numbers

Estimate repayments, LVR and deposit on a commercial purchase — owner-occupier or investment, full-doc or lease-doc — with our commercial property loan calculator. Paying rent now? Compare it against buying with the rent-vs-buy calculator.

Indicative only. Not a loan approval or borrowing-capacity assessment.

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Areas we cover across Western Sydney

Smithfield — Light-industrial workshops and factory units with hardstand and rear yard access.

Wetherill Park — Mid-size industrial units and warehouse-with-office stock for trades and wholesalers.

Blacktown — Mixed industrial and showroom units near the M7 corridor.

Seven Hills — Industrial estates with light-manufacturing and showroom units.

Yennora — Warehouse and distribution space along the rail-served industrial corridor.

Moorebank — Logistics-focused industrial close to the intermodal terminal.

Prestons — Modern industrial estates with high-clearance warehouses and B-double access.

Chullora — Rail-served industrial pockets suited to wholesale and distribution.

Check your commercial loan options

Answer a few quick questions about the property and your business. Free, no obligation, takes under 3 minutes.

Frequently asked questions

Depends on current LVR and lender cash-out cap. Typical cap is 65-70% total LVR. If you're currently at 50% and cap is 70%, you have 20% of valuation available (less fees).

Yes — most commercial lenders want to understand use of funds. Business purposes are easily accepted; personal consumption less so.

A fresh valuation ordered by the new lender, not the old one. Market movements since original purchase affect how much equity is accessible.

Yes — common structure. You refinance the existing loan to a new lender while increasing the loan amount.

Yes — even if the property supports a bigger loan on LVR, your business income must service the new payment at today's rates.

LRBA cash-out is heavily restricted — generally not permitted except in narrow circumstances. SMSF specialist advice essential.

Discharge fees from old lender, establishment fees from new lender, valuation, legals. Budget 1-2% of loan amount.

Also see: Commercial equity release · Build your own premises · Residual stock loans · Medical practice

Get your free Sydney commercial property assessment

Tell us what you're trying to buy and what you can put down — we'll map which commercial lenders fit your deposit and your business financials.

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General information only. Conditions apply. Mortgagefy is Credit Rep 532656 under ACL 348324.