A plain-English guide for business owners with a commercial property loan, business term loan or equipment finance who want to know whether their current loan still fits.
Short answer: Refinancing a commercial loan means replacing your existing business or commercial property loan with a new one, usually with a different lender, to change the rate, term, structure or amount. It tends to make sense when the savings or flexibility you gain outweigh the switching costs, such as break costs, fees, valuation and legal work, over the time you expect to hold the loan.
Why this is worth checking now. On 29 September 2026 the Reserve Bank lifted the cash rate target by 0.25 percentage points to 4.60%, its fourth increase this year and 100 basis points in total for 2026 (RBA media release).
A rate rise doesn't mean refinancing is automatically the answer. It does mean the loan you set up a few years ago may no longer suit your cash flow, and that makes this a sensible time for a review.
Rates and lender policies change often. Figures are current as at 29 September 2026.
When you refinance, a new loan pays out your existing one. You then make repayments to the new lender under new terms.
That sounds simple, but for businesses it covers more ground than most people expect. You might refinance to:
Commercial property loans, business term loans, equipment and asset finance, and overdraft-style facilities can all be part of a refinance. If you're weighing up several of these at once, our business refinance page covers each type.
Most businesses don't refinance because of one big event. It's usually a few smaller signals adding up. Tick any that apply to you.
Nothing is saved or sent. This is a quick self-assessment, not a credit assessment.
Daniel runs a growing logistics business. His warehouse loan's fixed rate ends in five months, his truck finance has a balloon payment due next year, and he's been leaning on the overdraft through the quiet season. Each facility was set up at a different time, with a different lender, and nobody had looked at them together.
Daniel is an illustrative composite, not a specific client. Outcomes depend on each business's circumstances and lender assessment.
This is where many refinances fall over. A lower rate can look attractive until you add up what it takes to switch. These are the costs to ask about before you commit.
| Cost | What it is | When it usually applies |
|---|---|---|
| Break costs | A fee to exit a fixed rate early, reflecting the lender's loss when rates have moved | Fixed-rate loans paid out before the fixed term ends |
| Discharge fee | Your current lender's fee to close the loan and release security | Most refinances |
| Application or establishment fee | The new lender's fee to set up the loan | Varies by lender and loan size |
| Valuation | An independent valuation of the property used as security | Property-secured loans |
| Legal costs | Lender and borrower legal work on loan and security documents | Most commercial refinances |
| Government fees | State fees to register the new mortgage and discharge the old one | Property-secured loans |
| Early payout on asset finance | Remaining interest or fees to pay out equipment finance early | Depends on your contract |
Costs vary by lender, loan size and state. Ask for written figures before deciding.
Divide your total switching costs by the monthly saving. The answer is roughly how many months it takes to break even.
Hypothetical figures to show the method only. If you expect to sell, restructure or refinance again before the break-even point, switching may not pay off. You can run your own numbers with our commercial refinance calculator.
Refinancing isn't the only way to improve a loan. Depending on your situation, one of these three paths usually fits best.
In a rising-rate environment this question matters more. Neither is always better. It comes down to how much certainty your business needs.
Some businesses split the loan, fixing part for certainty and leaving part variable for flexibility. Whether that's available and sensible depends on the lender and your situation.
Note your rate, rate type, fixed or facility expiry date, any break costs and your remaining balance. Your latest loan statement and contract have most of this.
Lower repayments, more certainty, releasing equity or simplifying several facilities all lead to different structures. Be clear on the goal first.
Look at banks, non-bank lenders and, where appropriate, private lenders. Compare the total cost and loan features, not just the headline rate.
Up-to-date financials make the biggest difference to how quickly a lender can assess your application. See the checklist below.
The lender assesses your business, orders a valuation where property is involved and issues an offer if the application is approved.
The new lender pays out the old loan, securities are swapped over and your first repayment date is set. Commercial refinances commonly take several weeks, longer where valuations or complex legal work are involved.
Every lender has its own requirements, but these are the documents most commercial refinance applications typically need.
A good review sometimes ends with "stay where you are". It's worth knowing the warning signs.
A refinance is only as good as the structure behind it. Pooja brings over a decade of banking and business lending experience, so she looks at your loans the way a lender will: the whole business, not just the rate.
Probiz compares options across a panel of 50+ banks, non-banks and private lenders. The conversation covers what you're paying now, what your options might look like, what switching would cost, and whether it's worth doing at all.
Usually, yes. Variable-rate loans can often be refinanced at any time, subject to discharge and other fees. Fixed-rate loans may attract break costs if you exit early, so ask your lender for a written break cost figure before deciding.
Commercial refinances commonly take several weeks from application to settlement. Timing depends on how quickly financials are available, whether a valuation is needed, and the legal work involved. Starting three to six months before a fixed rate or facility expires gives you room to compare options.
It may still be possible. Some lenders look at the overall trend, the reason for the dip and the security you offer, while others are stricter. A broker can help you understand which lenders' policies may suit your situation before you apply.
Most lenders order their own valuation for property-secured loans, even if you had one done recently. The valuation affects how much you can borrow and whether you can release equity.
If your property has grown in value or your loan balance has come down, you may be able to borrow against the extra equity to fund growth, a fit-out or another investment. How much depends on the valuation, the lender's maximum loan-to-value ratio and your ability to service the higher loan.
It can be worth asking, especially if you have a strong history with them. Knowing what other lenders might offer puts you in a better position for that conversation, and sometimes a restructure or a new lender is the better fit.
Commercial refinance usually refers to loans secured by commercial property. Business refinance is broader and can include term loans, equipment and asset finance, overdrafts and debt consolidation. Many businesses review both together.
A short, no-pressure conversation with Pooja can tell you what you're paying now, what your options might look like and what switching would cost, before you commit to anything.
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