Commercial property loans

Commercial property loans are generally different to that of residential property in terms of interest rates, Loan to Value Ratio (LVR) thresholds and other lender policies. It is considered a more risky asset class compared to residential property as vacancy periods can be quite long. This asset class may be more suited to those who are in or approaching retirement or for business owners to hold their business premises in their self-managed super fund (SMSF).

Commercial property loans include finance for:

 boarding houses

 car yards

 offices

 shops – retail premises, including mixed use

 warehouses

 factories

 industrial sites

 Strata offices and office blocks

 Professional rooms and suites

 Residential unit blocks

 Rural Farms

No all lenders will accept every type of property for security.

Acceptable legal structures for commercial property borrowing are:

 Individuals

 Companies (private and public)

 Trusts

 Partnerships

Many lenders require that the term for a Commercial property loan is to a maximum of 15 years, we can access loan terms of up to 25 years. A longer commercial property loan term, up to 25 years can be convenient, especially for Self-Managed Super Fund (SMSF) loans for commercial property. Some lender allows you to refinance to release equity and get cash out for thing like property improvement, investment, working capital and business expansion.

Contact a mortgage broker to find out about commercial property finance options.