Commercial Property Mortgages

Written By Kim Manunui

In New Zealand’s dynamic property market, commercial property mortgages continue to play a crucial role in supporting business growth and investment. From office buildings and retail spaces to warehouses and rural assets, commercial lending provides the financial backbone for enterprises seeking to expand or secure long-term premises.

Unlike residential mortgages, commercial property loans are assessed primarily on the strength of the business, the property’s income potential, and the borrower’s financial history. Lenders focus on the property’s ability to generate rental income or enhance business performance, often requiring detailed cash flow projections and a clear exit strategy. Interest rates tend to be higher than standard home loans, reflecting the increased risk and complexity associated with commercial lending.

Major banks, second-tier lenders, and non-bank financial institutions all operate in this space, offering a range of structures including fixed, floating, and interest-only facilities. Loan-to-value ratios (LVRs) typically range between 60 and 70 percent, though this can vary depending on the borrower’s profile and the type of property.

The commercial mortgage market has evolved in recent years, with rising interest rates and tighter credit conditions prompting borrowers to seek more flexible funding solutions. Non-bank lenders have gained traction by offering faster approvals, bespoke loan terms, and greater appetite for niche sectors such as hospitality, logistics, and development finance.

As always, businesses with strong fundamentals and sound financial planning remain well-positioned to secure funding despite market headwinds. As the economy adjusts to shifting demand, commercial property remains a cornerstone of investment strategy in New Zealand—offering both opportunities and challenges for businesses looking to take their next step.

Partnering with an experienced finance broker or adviser can make all the difference—ensuring access to competitive terms and helping navigate the complex lending landscape.

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Kim Manunui

Hi, I’m Kim and I work with a great team to help individuals, as well as small and not so small businesses get their message, product and services to the world using digital media and creating wonderful websites that don’t cost the earth.

I was born in Canada, and grew up around Vancouver and the mountains of British Columbia. My love of pristine environments led me to New Zealand and eventually to the mountains, lakes and rivers of the central North Island which is home. My family’s heritage is here, and it’s from here that Korio traverses the planet.

The digital world is never static and neither are we.

And I say ‘we’ because I work with an awesome group of talented people who I gather together as required to complete a project.  Whatever your business, not-for-profit or individual needs are we gather the best team to get the job done.

Collaboratively we are creative, share sustainable values and work hard for great outcomes because that’s the buzz of satisfaction that drives us.

If you have an audience and market to reach, we can make that happen. Creative design, words that work and smart behind the scenes stuff that cuts through the online noise. We’ll design your website and then build it. We’ll manage the content as well as all your hosting needs. We can handle your online advertising so you get noticed,
and we’ll manage your social media presence so you get the clicks, likes and engagement to grow your business. All within the budget you set, because none of this needs to cost the earth.  And the job doesn’t stop when your website goes live. We are your virtual business partner.

https://www.korio.co.nz
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Trade Finance and short term business funding