The short answer
Yes. Commercial property is funded at around 50% to 65% of value — a little below residential — and rental income from it can help your eligibility. A long-standing tenancy, a thin local resale market, or an unclear title are what cause difficulty.
What you can raise
Around 55% to 65% for a commercial property you occupy yourself, and 50% to 60% for one that is let out. The gap against residential exists because the pool of buyers for a commercial unit is smaller, which makes enforcement slower.
The tenancy question
A let-out property cuts both ways. The rental income can be counted towards your eligibility — typically 70% to 80% of it, evidenced by a registered lease deed and matching bank credits — which often adds more capacity than the slightly lower LTV takes away.
But a long or protected tenancy makes the property harder to enforce against, and lenders price or decline accordingly. Be upfront about the tenancy and have the lease deed ready.
What lenders look at closely
- Location and marketability. A shop on a main road in an established commercial area is a different proposition from a unit in a half-occupied complex.
- Whether the building has commercial approval. A residential property being used commercially is valued as residential, and sometimes creates a compliance issue of its own.
- Share in a complex. For a unit in a larger building, lenders check the association’s position and any restrictions on transfer.
- Title clarity. Commercial property titles are more often complicated by partnerships, family arrangements and older transfers.
If it is owned by the business
A property held in the name of a partnership firm or a company can be mortgaged, but the paperwork is heavier — a board resolution or partners’ authority, the constitution documents, and usually personal guarantees from the directors or partners on top. Allow extra time.
Industrial property
Funded lower, at roughly 40% to 55%, by fewer lenders and over a longer process — six to eight weeks is realistic rather than three. It is workable, particularly for an established manufacturing business, but plan the timeline accordingly and do not commit to a supplier on the assumption of a quick disbursement.
Free, and it does not ask for your phone number.
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