Commercial Property Loan Solutions

It is a type of loan which is taken by a business or an individual for business purpose. The sole reason for this loan is to fund commercial operations to develop business and expansion.

Different kinds of commercial loans available are business overdraft facility, chattel mortgage, equipment & leasing finance, line of credit, business term loan, commercial property loan.

Commercial property mortgage loans are commonly used to purchase or refinance existing commercial property. It involves paying GST, which is 10% of property value and increases the cost of purchase. When purchasing a commercial property, lenders generally require a 70%-80% deposit depending on the value of the property.

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When compared to residential lending, income verification is less strict due to lesser legislative restrictions. Income verification can be done as

Full doc where you provide 2 years tax returns and financial statements
Low doc where you only need to supply BAS or letter from accountants or business bank statements
Some lenders can also use the forecasted financials which will include your P & L and expected future growth

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FAQS

What is a commercial loan?

A commercial loan is a debt-based funding arrangement between a business and a financial institution.

How will I qualify for a commercial property mortgage loan in Australia?

You generally need good credit to qualify for a commercial loan. You are required to have at least a credit score of 726-832. However, a credit score of over 833 is preferred.

How much can I borrow?

You can borrow up to 100% of the property value using a guarantor; up to 80% of the property value for loans up to $1 million and up to 75% of the property value for loans up to $2 million.

What does a commercial broker do?

A commercial broker will assist you with the lease of commercial space, including lease rates, finding quality space, etc.

How to apply for a commercial property loan?

If you are planning to apply for a commercial property loan, we recommend that you take the professional lending specialist’s assistance to make processes easy for you.

How is income verification done for commercial property finance?

Income verification can be done by:

Full documentation where you provide 2 years tax returns and financial statements
Low documentation where you only need to supply BAS or letter from accountants or business bank statements
Some lenders can also use the forecasted financials which will include your P & L and expected future growth