Considering purchasing a commercial property?
This is a growing category of investment for owner-occupiers, investors and those with a Self -Managed Superfund (SMSF).
Rates on commercial property loans are currently very competitive and lenders are eager to fund clients wishing to purchase or re-finance commercial properties which include factories/warehouses, commercial property or other similar assets. Lenders’ interest in this category of assets are currently extremely encouraging.
Most commercial loan terms range from 15- to 30-years, and current lending on commercial properties sit between 60% to 80% of property or asset value.
Taking a commercial loan from a major bank usually involves the borrower transferring all their business banking relationships to that institution, which can be extremely onerous.
Also, major financial institutions focus on the financial health of the business rather than just the mortgagor, thereby requiring additional financial statements to assess the transaction.
Whilst the banks are using the catch cry, “We are open for business and accepting new bank clients”, it comes back to their appetite for the business and the applicant’s credit worthiness. Approval criteria and assessment requirements are still pretty comprehensive and exhaustive.
Contact Paul today on 0417 567 747 to discuss your current or future commercial finance requirements you may be considering.