What is a Commercial Property Loan?
Properties come in various shapes and sizes and are categorised into segments, namely residential, commercial, industrial or rural.
The nature and manner of lending for commercial property largely depends on the purpose/requirement for funds and various other factors, such as location, the asset itself and the Loan to Value Ratio (LVR). This can frame the pricing that is available, coupled with the LVR that a lender is prepared to extend against a subject property.
Commercial property can be a great long term investment for you personally as well as your business.
What do I need to get this type of finance?
- Property as security
- Personal guarantee usually required
- Non-recourse transactions need to overwhelmingly demonstrate strength of proposed borrower
- Capacity to provide an equity contribution, ensure on-going repayment of facility or the means to support any shortfall from other sources
What are the benefits?
- Fixed payment amounts and frequency, so you know exactly what you owe and when
- Lower interest rates than other types of finance
- Options to pay interest only on the loan for part of the repayment term
- Options for fixed or variable interest rates or a combination over the term of the loan
- Redraw and offset options
| The features of Commercial Property Finance | |
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| Loan Amounts |
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| Security Requirements |
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| Repayment Terms |
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| Loan to Value Ratio LVR |
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| Indicative Interest Rate % |
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