Considering purchasing a commercial property? This is a growing type of investment for owner-occupiers, investors and those with a Self-Managed Superfund. Whilst commercial mortgages may appear similar to residential mortgages, they require more specialized knowledge and limits. Most commercial loan terms range from 15 to 30 years and lending is between 60% to 75% on commercial property. Rates on commercial property loans are higher than normal residential loans.
Taking a commercial loan from a major bank usually involves the borrower transferring all their business banking relationship 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.
We have access to specialist commercial funders, mainly non-banks who have better eligibility requirements, fewer loan covenants, longer loan terms and lend up to 75% of the commercial property valuation. They also lend to SMSF which major financial institutions resigned from several years ago.
Contact Paul to discuss your current commercial loan or any future commercial finance requirements you may be considering.