Commercial Property Loans

Commercial Property Loans are different from home loans. You should engage a Commercial Property Loan specialist to help navigate the loan process. Here are some of the key differences:

Loan periods – Loan periods for commercial property loans are generally shorter than for home loans. Where a home loan can be as long as 30 years the loan term for a commercial property is generally limited to 20 years. A Loan expert can help you choose a loan period that best suits your needs

Interest rates – Interest rates on a commercial property loan are generally higher than for a residential property. This is in part because lenders sometimes consider a commercial property a more risky investment. Our experts will help you choose the right loan with the best interest rates for your needs. Offering other property as security can often allow you to get a lower interest rate.

Fees – Commercial property loans will have fees attached to them. Our Experts can help you negotiate a loan with competitive fees – sometimes no monthly fees or charges. 

The amount you can borrow and whether lender’s mortgage insurance is required – Different lenders have different calculations for how much you can borrow and whether or not you will require lender’s mortgage insurance. This can depend on a variety of factors and how much documentation you are able to provide a lender. 

If you are buying a commercial property as an investment, here is some of the documentation our Experts will help you collate to ensure you get the best offer available:

Leases – If there is an existing lease in place a lender is going to want to see this. They will want to see the amount of rent collected and the length of the lease agreement

Ability to service the loan –  The lender is going to want to see that you can service your loan. They will want to ensure that you have the ability to make loan repayments. 

Personal income – A lender will want to know what personal income you earn, including other rental incomes, to ensure that you can pay the loan

Any deposits or equity available – Lenders are unlikely to offer a 100% loan so will want to know what deposit you can offer or whether you have any equity in other properties that you own. 

Property details – Lenders will require the details of the property you are purchasing – type, location and valuation. 

If you are seeking a commercial property loan, speak to one of our experts today. They will help you manage the end to end process of the loan application. Get in touch today.