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Business owner with equity · Western Sydney

Commercial Equity Release Sydney

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

Equity release is the broader umbrella — cash-out refinance, second mortgage, line of credit, business overdraft secured on commercial property. Each has different cost, flexibility and risk trade-offs for a Sydney business owner with equity to work with.

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General information only, not financial advice. Conditions apply.

How it works

Three common structures: full refinance with cash-out (replaces existing loan, locks in a new rate, usually the sharpest cost per dollar), second mortgage (adds a second facility behind the first, higher priced but doesn't disturb a good existing rate), and secured line of credit (variable facility against the property's equity, drawn as needed).

The right structure depends on how you'll use the money. For a one-off large purchase, cash-out refinance usually prices sharpest. For intermittent working-capital needs, a line of credit matches cash flow better. For unexpected opportunities, a standby facility arranged in advance is valuable.

Each option is subject to the same LVR ceilings (65-70% total exposure typical) and the same serviceability tests on the trading business income. The property is the security; the business income is the repayment source.

What commercial lenders actually look at

Structure fit

Match structure (refi, second, LOC) to how you'll use the money. One-off vs recurring vs standby.

Current LVR

Available equity depends on current debt and lender LVR cap.

Serviceability

Business income must cover the new or additional repayments at today's rates.

Property valuation

Fresh valuation drives available equity.

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

Business owners with 30%+ equity in their commercial property
Multi-property owners funding growth from existing equity
Businesses with lumpy capital needs (seasonal, project-driven)
Owners wanting a standby facility arranged in advance
Buyers using commercial equity as deposit for the next purchase

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.

Girraween — Compact industrial strata, popular with trades expanding out of home workshops.

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

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

Cash-out refinance usually prices sharpest per dollar borrowed because it's priced as first-mortgage commercial. Second mortgage sits behind the first, carries more risk for the lender, and prices higher.

A variable facility against commercial property equity. You draw funds as needed up to the limit; interest only on drawn balance. Good for seasonal or project-driven cash flow.

Yes — some borrowers maintain a core commercial loan plus a smaller LOC for flexibility. Each is priced on its own merits.

65-70% total exposure typical for commercial equity release. Some lenders go higher with strong trading and specialised assets.

Yes — personal guarantees are standard, so personal credit factors in. Clean file reduces friction.

LRBA equity release is heavily restricted and generally not permitted except in narrow circumstances. SMSF specialist advice essential.

4-8 weeks typical from application to settlement, depending on structure complexity and valuation turnaround.

Also see: Build your own premises · Residual stock loans · Owner-occupier loans · Retail shopfront

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.

Start Your Free Assessment Call 0432 634 648

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