For commercial property and business lending, the key test is interest cover: the income available to pay interest, divided by the annual interest. A building earning $180,000 a year after outgoings, with $120,000 of annual interest, has interest cover of 1.5 times.
Lenders set their own minimum interest cover and usually test it at a rate higher than today's, so the loan still works if rates rise. For property, income means rent after the outgoings the owner pays. For a business, lenders usually look at earnings before interest, tax, depreciation and amortisation (EBITDA).
Some lenders also look at debt service cover, which includes principal repayments as well as interest. Lease length, tenant quality and vacancy risk all affect how much income a lender will count.
Try it yourself: the interest cover calculator shows your cover and the largest loan at a target you choose.