Quick answer: Lease-doc borrowing is constrained by both property value and the lender’s required income cover. Start with net sustainable rent after relevant outgoings, then test it against stressed interest and repayment assumptions; the exact interest-cover methodology varies by lender.
Questions borrowers, investors and developers commonly ask
- If the rent is $100k a year, how much can I borrow?
- Does gross rent or net rent matter for lease-doc finance?
Rent is not automatically available dollar-for-dollar
Recoverable outgoings, incentives, vacancy assumptions and GST treatment can affect the income a lender recognises.
Two constraints can apply at once
Even if rent supports a large debt amount, the accepted property value and maximum leverage can cap the loan lower.
Related guides
General information only. Commercial-property and development lending criteria vary by lender, transaction, security and market conditions. This is not legal, tax or investment advice.
Frequently asked questions
If the rent is $100k a year, how much can I borrow?
Lease-doc borrowing is constrained by both property value and the lender’s required income cover. Start with net sustainable rent after relevant outgoings, then test it against stressed interest and repayment assumptions; the exact interest-cover methodology varies by lender.
Does gross rent or net rent matter for lease-doc finance?
Recoverable outgoings, incentives, vacancy assumptions and GST treatment can affect the income a lender recognises.
Will every lender treat this the same way?
No. Commercial and development lending policy varies materially by lender and transaction.
Should I apply before the structure is tested?
For material or unusual transactions, test lender fit and the funding structure before creating formal applications.
Sources and verification
Need help matching this to a business-finance option?
GPS Finance can review the funding purpose, conduct, documents and lender fit before you make a formal enquiry.
