Does the deal stack?
Commercial DSCR & Stress Test
Lenders size commercial debt on debt service coverage at a stressed rate, not the headline rate. Enter income, outgoings and the facility — see DSCR at your rate and stressed, plus the maximum loan that still services.
Contracted annual rent across the property.
Lenders rarely accept 0%. 3–5% is a defensible floor.
Costs the tenant does not reimburse (management, some rates).
The rate you expect to actually pay.
What a credit committee tests against. 9–10% is common in 2026.
Amortisation period for the P&I assessment.
DSCR at stress rate
0.88×
Lenders typically require 1.25× or better at the stressed rate.
Assumptions & method
- DSCR = net operating income ÷ annual P&I debt service.
- Debt service modelled as principal & interest over the term. Interest-only cover is shown separately for reference.
- No universal Australia-wide commercial buffer exists — the stress rate is yours to set; 9–10% reflects 2026 practice.
- Indicative only. Lenders also weigh LVR, lease term (WALE), tenant covenant and property type.
Beyond the numbers
A number is a starting point, not an answer
These tools model the mechanics. The decision depends on structure, timing and the specifics of your scenario — that's the conversation worth having.