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Lease-doc borrower · Western Sydney

Lease-Doc Commercial Loan Sydney

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

Not every buyer has two tidy years of tax returns in hand. Lease-doc commercial lending uses the rent on the property — or the arm's-length lease between your operating company and the ownership entity — as the primary servicing evidence, in place of full business financials.

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General information only, not financial advice. Conditions apply.

How it works

In lease-doc lending, the lender's primary comfort is the lease, not the tenant. They model whether contracted rent covers the loan servicing with a margin (rent coverage ratio typically 1.5x or better). Business financials are secondary.

This path suits borrowers who are self-employed with messy or short-history financials, newly-structured operating entities, or SMSF LRBAs where the fund itself has no trading income. Trade-off: higher rates and lower LVR than standard-doc commercial.

Typical lease-doc LVR tops out around 70% for owner-occupier and 65% for investment. Rates sit above standard commercial but below unsecured business lending. Terms otherwise follow standard commercial — 15-25 year amortisation, with interest-only options.

What commercial lenders actually look at

Rent coverage ratio

Contracted rent must cover loan servicing with margin. 1.5x is typical minimum; stronger borrowers go higher.

Lease term & tenant

Longer lease is better; strong tenant covenant is better. For owner-occupier lease-back, documented market rent is key.

Property fundamentals

Standard commercial — vanilla assets much easier than specialised.

LVR cap

70% owner-occupier, 65% investment is the usual landing zone.

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

Self-employed buyers with messy or short-history financials
SMSF LRBA deals where the fund has no trading income
New operating entities without two years returns
Buyers prioritising deal speed over sharpest rate
Entities with strong rental coverage but complex tax structures

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.

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

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

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

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

Minchinbury — M4-adjacent logistics warehousing with container-handling yards.

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

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

A commercial loan where the primary servicing evidence is the lease (rent) on the property, instead of full business financials. Suits borrowers with strong rental coverage but messy or short-history trading.

70% owner-occupier typical, 65% investment. Some lenders stretch slightly higher with strong coverage.

Higher than standard-doc but lower than unsecured business lending. Specific pricing varies by lender and deal.

1.5x the loan servicing is a typical minimum. Stronger coverage expands LVR and improves pricing.

Yes — common for SMSF LRBA where the fund has no trading income to show. The lease between the SMSF and the operating entity is the servicing evidence. High-level only.

Short lease weakens the case. Lenders prefer 3+ years. If the lease is shorter, a renewal option strengthens the file.

You can refinance to standard-doc commercial once you have two years of clean trading. Many borrowers do exactly this after 18-24 months.

Also see: Your first commercial property · NSW commercial stamp duty · Going concern vs vacant possession · 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.

Start Your Free Assessment Call 0432 634 648

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