Key Takeaways
- •Equity release lets you access capital locked in property you own
- •No need to sell — borrow against existing equity
- •Available through Resolve (75% LVR) and Reach (70% LVR)
- •Common uses: working capital, business growth, debt consolidation
Equity release is the process of borrowing against the value you have built up in a property you already own. If your property is worth more than the debt secured against it, the difference is your equity — and it can be unlocked as working capital without selling the asset.
For commercial property owners in Australia, equity release is one of the most efficient ways to access capital for business growth, debt consolidation, or new investment opportunities. The property remains in your ownership, your existing operations continue undisturbed, and the capital is available in days rather than the weeks or months it would take to sell.
How Equity Release Works
The process is straightforward. A valuation establishes the current market value of your commercial property. The lender calculates the maximum loan amount based on the LVR limit — typically 70% to 75% of the property value. If there is an existing mortgage, the available equity is the difference between the maximum loan amount and the existing debt.
For example: a commercial property valued at $2,000,000 with an existing first mortgage of $800,000. At 75% LVR, the maximum total debt is $1,500,000 — meaning up to $700,000 of equity can be released. If using a second mortgage product at 70% LVR, the maximum total debt is $1,400,000, releasing up to $600,000.
The released equity is advanced as a new loan — either as a first mortgage (if the existing debt is being refinanced) or as a second mortgage (if the existing first mortgage is being retained). The choice between these approaches depends on the terms of the existing first mortgage and the borrower's preferences.
Common Uses for Equity Release
Working capital
The most frequent use case. Business owners release equity from their commercial property to fund day-to-day operations — payroll, stock purchases, supplier payments, or seasonal cash flow gaps. The property serves as security, and the business cash flow services the loan.
Business growth and expansion
Capital for expansion — new equipment, additional premises, staff, marketing, or entering new markets. Equity release provides growth capital without diluting ownership through equity investment or taking on unsecured debt at higher rates.
Debt consolidation
Multiple debts across different lenders — credit cards, equipment finance, unsecured business loans — can be consolidated into a single facility secured against property. This typically reduces the overall interest cost and simplifies cash flow management.
Property acquisition
Using equity in an existing property to fund the deposit or purchase price of a new property. This is common among property investors building a portfolio and developers funding new project acquisitions.
LVR Impact on Equity Release
The amount of equity you can release is directly determined by the LVR cap applied by the lender. Higher LVR caps mean more capital is available. At Alphacon Capital, our Resolve product offers up to 75% LVR on first and second mortgages, while our Reach product offers up to 70% LVR across all Australian postcodes.
The LVR is also affected by property type and location. Commercial properties in metro postcodes typically attract the highest LVR limits. Regional or specialised commercial properties may attract lower limits. Use our LVR calculator to model different scenarios and see exactly how much equity is available in your property.
Which Products Suit Equity Release?
Resolve — Commercial Core
Up to 75% LVR. First and second mortgages. No risk fee — making it the lowest-cost option for equity release. Requires accountant-verified income and a credit score above 600. Terms from 6 to 60 months. Ideal for borrowers with established businesses and clean credit.
Reach — Nationwide
Up to 70% LVR. First and second mortgages. No minimum credit score. Self-declared income. Covers every Australian postcode. Ideal for borrowers with credit issues, regional property, or those seeking a second mortgage facility without refinancing the first mortgage.
Exit Strategies for Equity Release
Every equity release facility needs a clear exit strategy. The most common exits are refinance to a bank or longer-term lender once the capital has served its purpose, repayment from business cash flow over the loan term, sale of another asset to repay the facility, or refinance at a lower LVR once the business position has improved.
The strength of the exit strategy is a key factor in the approval decision. Borrowers with multiple viable exit paths receive the most favourable terms.
How to Get Started
If you own commercial property and need to access the equity, start with our free LVR calculator to see how much capital is available. Then use our AI Loan Assessment for an instant eligibility check, or submit your scenario directly. We provide same-day indicative terms and can settle in as fast as two weeks.