Raising Working Capital Against Commercial and Residential Security in Strathfield

Plenty of Strathfield business owners hold both kinds of property, usually a commercial premises the business trades from and an investment house or two alongside it, and when working capital is needed quickly the simplest answer is often to put both up as security rather than stretch one of them. What's worth knowing first is that the two don't carry the same capacity, because we'll go to 75% of value on residential and 70% on commercial, so the mix decides how much you can raise.

Key facts for Strathfield (2135), 12 months to September 2026

• Median five-bedroom house: $4.975 million. Four-bedroom: $3.5 million. Three-bedroom: $2.76 million.
• Five-bedroom houses were the most traded stock in the suburb: 50 sales, against 39 four-bedroom and 27 three-bedroom.
• Houses took 50 to 51 days to sell, units 41 to 43 days.
• Auction clearance: 54% on five-bedroom houses, 59% on four-bedroom, 58% on three-bedroom.
• Median two-bedroom apartment: $768,250. Population 25,803, 56% owner-occupiers.

Why commercial security is capped lower than residential

Commercial property is harder to sell in a hurry and its value depends a lot more on the lease and the tenant than a house does, so lenders hold back more against it, and in our case that's 70% of value against 75% on residential. On a $2.5 million building that difference is $125,000 of capacity, which sounds small until it's the gap between the facility you need and the one that fits. It also depends on the sort of commercial stock it is, and we've gone through why commercial security gets a lower cap and how daily needs retail gets read differently from discretionary.

We lend to companies, trusts with a corporate trustee, SMSFs and individuals where the loan isn't NCCP-regulated, and it's business and investment purpose only, so working capital, an acquisition, an ATO or GST liability and equity release behind an existing bank facility all fit, and the security can be residential, commercial or mixed use as long as it's completed.

A worked Strathfield example

Say a company owns a four-bedroom Strathfield investment house worth about $3.5 million with $1.2 million owing to a bank, and a Strathfield commercial premises it trades from, valued for this illustration at $2.5 million and unencumbered, and the directors need $2.4 million of working capital to fund a large contract.

60% across the pair is comfortable and there's about $775,000 of unused room behind it, which is what absorbs a valuation that comes back light on either asset.

The exit is the part we want evidenced rather than described, so usually that's a refinance back to a bank once the contract is delivered and the accounts show it, or a sale of one of the two assets, and if neither looks realistic inside the term we'd rather decline it than argue about an extension later.

How long would the security take to sell if it had to?

Strathfield houses took 50 to 51 days on Domain's figures and units 41 to 43, with auction clearance holding between 54% and 59%, which is stronger than most of Sydney managed.

Those are medians though, so half of everything took longer, and the wider market has turned since, with Sydney house values down 3.3% in the June 2026 quarter, clearance at 48% and a record 29.3% of auctions withdrawn. Commercial property is slower again, so if a sale is the fallback rather than the plan, size the term on the commercial asset rather than the house.

What actually settles here

No private mortgage settled against a Strathfield property in the 90 days to August 2026, but two settled elsewhere in the inner west, a first mortgage of $2,530,000 at 60% LVR against a house at Newington to refinance, and a first of $1,290,000 at 70% against commercial property at Summer Hill for a business investment.

Nationally over the same 90 days there were 196 settlements, 82% of them secured by residential property at a median loan of $765,500, split 115 first mortgages and 81 seconds. The purposes were refinance 55, purchase 42, working capital 39, business investment 26, construction 19, debt consolidation 10, bridging 3 and subdivision 2.

What Vía Private lends on

What we will not do

We don't do consumer credit regulated by the National Credit Act, so if the security is the home you live in and the money is for something personal then we're the wrong lender and we'll say so early. We don't fund construction or development, we don't lend against vacant land or pre-DA sites, we won't lend where there's no credible exit, and we won't lend against a valuation we haven't tested ourselves.

Questions people ask

Can I use commercial and residential property as security for the same loan? Yes. A facility can be secured over more than one property, including a mix of commercial and residential. Each security is sized against its own cap, 75% of value on residential and 70% on commercial, and the available room is the total of both less any debt ranking ahead.

Why is the commercial cap lower? Commercial property takes longer to sell and its value depends heavily on the lease and the tenant, so lenders hold back more against it and cap it at 70% of value rather than 75%.

Can I borrow for working capital against property I already own? Yes, where the borrower is a company, trust, SMSF or an individual outside the National Credit Act, and the purpose is business or investment. Working capital was behind 39 of the 196 private mortgages settled nationally in the 90 days to August 2026.

Does the existing bank loan have to be repaid? No. A second mortgage sits behind the existing first mortgage and leaves it in place, with the combined debt kept inside the cap for that security type.

How long does it take to sell property in Strathfield? Houses took about 50 to 51 days and units 41 to 43 on Domain data for the 12 months to September 2026, with auction clearance between 54% and 59%. Those are medians, so allow longer when sizing a term.

Getting a Strathfield scenario looked at

Most of the scenarios we see come through accredited mortgage brokers, so if you're already working with one, send them this page and they can put it to us. If you'd rather come to us first, email begin@viaprivate.com.au with the property, the amount you need, what it's for and how you plan to repay it.

Nearby: Hunters Hill · Lane Cove · Castle Hill · Willoughby · Paddington

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Figures are indicative and for illustration only. Median values are Domain suburb data for the 12 months to September 2026. Market commentary is from the Domain House Price Report, June quarter 2026. Settlement counts are from a private lending panel covering 196 mortgages funded nationally in the 90 days to August 2026. Transfer duty is calculated at Revenue NSW 2026-27 rates. Vía Private lends to companies, trusts and SMSFs for business and investment purposes only and does not provide consumer credit regulated by the National Credit Act. This page is general information and does not take your objectives or circumstances into account. Last reviewed 13 September 2026.