I recently spoke with my bank (CBA) about commercial property lending (just prior to finding IP2 which is now awaiting settlement) and was informed for anything outside of a CBD they only assess the rental income for the term of the lease. AKA for a 15 year loan they want a 5x5x5 lease with options. If there are only 1 or 2 year leases, the property is presumed vacant for the remaining term. This is obviously VERY different from resi lending where a rental appraisal is acceptable. Oh and however long the lease is, they also subtract a year a year of income as a buffer. Do most lenders expect these long term leases to be in place to lend for commercial loans? Many high yielding properties are able to comfortably service their own 15 year P&I loans whilst remaining cashflow positive. So if I am able to fund a deposit I am wondering if borrowing for a commercial might be possible in the near future? As my serviceability has hit a bit of a wall as my income has reduced and I am about to settle on IP2 so my debt levels are about to increase. Thanks in advance for your thoughts. TLDR: Do most lenders expect these long term leases (5x5x5) to be in place to lend for commercial loans?