Finance question
Can I refinance a commercial property loan to release cash?
Often yes. If your commercial property has grown in value or you have paid the loan down, refinancing can pay out the old facility and release the extra equity as cash. It sits in the $5 to 6 million range at single-digit rates, with no financials on many deals.
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The short answer
Turn built-up equity into working funds
Refinancing to release cash means replacing your current commercial property loan with a new, larger one and taking the difference as usable funds. It works whenever equity has built up, either because the property has risen in value since you bought it or because you have paid the balance down. That equity, which has been sitting locked in the building, comes out as cash you can put to work.
Because a commercial property still secures the new facility, the rate stays in single digits, and many of these deals settle without up-to-date financials. It is a very different cost to funding the same amount through an unsecured business loan or an overdraft, which is why refinancing to release equity is such a common move for owners who hold commercial real estate.
The released funds tend to go into growth or consolidation, a deposit on a second premises, a large equipment purchase, buying out a partner, or paying down more expensive debt into one cheaper facility. What you can pull out is driven by the current valuation and how much equity you have built, not a flat cap.
Do you qualify?
What makes a cash-out refinance work.
A commercial property
One you own with an existing loan on it.
Built-up equity
From a higher value or a paid-down balance.
A use for the cash
Growth, a second site, or consolidating debt.
An active ABN
Companies, trusts and sole traders all qualify.
Why refinancing releases cash cheaply
Equity comes free
Value gains and paid-down balance both create usable equity.
Single-digit rates
The commercial property still secures it, so pricing stays low.
Consolidation option
Costly debt can be rolled into one cheaper facility.
A real example
An owner bought a commercial unit for $900k and owes $500k. It now values at $1.4m, so equity has grown to about $900k. A refinance pays out the $500k and releases funds on top at a single-digit rate, used as a deposit on a second premises. Illustrative only, subject to valuation.
Common questions
Frequently asked questions
How does releasing cash on a refinance work?
The new loan pays out your existing one and is set slightly larger, so the extra equity comes back to you as cash. It is sized to your built-up equity.
Do I need the property to have gone up in value?
Not necessarily. Paying the balance down also builds equity, so either a higher value or a lower loan can create room to release cash.
Can I consolidate other debt at the same time?
Often yes. A refinance can roll higher-rate debt into one cheaper property-backed facility, subject to lender assessment.
Do I need financials to refinance and release cash?
For many deals, no. The commercial security carries the facility, subject to lender assessment.