Are you considering purchasing a commercial property? This is a growing type of investment for owner occupiers, investors and Self Managed Superfunds.
Whilst commercial mortgages may appear to be similar to residential mortgages, they require more specialized knowledge. Most commercial loan terms range from 15 to 30 years and lending on commercial property is between 60% to 75%.
Rates on commercial property loans are also higher than normal residential home loans. A commercial loan from a major bank usually requires the borrower to transfer all their business banking which can be extremely onerous. Financial institutions also 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 as they have less eligibility requirements, fewer loan covenants, longer loan terms and can lend up to 75% of the commercial property value. They are also able to lend to Self Managed Superfund which major financial institutions resigned from several years ago.
Contact Paul today to discuss your current commercial loan or any future commercial finance requirements.
Tags: real estate finance