Considering purchasing a commercial property?
This is a growing investment portfolio for owner-occupiers, investors and Self-Managed Superfund owners.
While commercial mortgages may seem similar to residential mortgages, they require more specialised knowledge and limits. Most commercial loan terms range from 15 to 30 years and lending on the property lies between 60% to 75%.
Rates on commercial property loans are higher than normal residential home loans.
Taking a commercial loan from a major bank usually involves the borrower transferring all of their business banking to that institution which can be extremely onerous.
Also, financial institutions focus on the financial health of the business, rather than just the mortgagor, therefore requiring additional financial statements to assess the transaction.
Flakus and Associates has access to specialist commercial funders who are mainly non-banks and they have better eligibility requirements, fewer loan covenants, longer loan terms and able to lend up to 75% of the commercial property valuation.
Plus, they also lend to Self- Managed SuperFunds which major financial institutions resigned from several years ago. If you are in the market for this type of loans, do contact Paul today discuss your options.