Commercial property loans are used for business or investment purposes. The purpose of your commercial property loan will affect how your loan is assessed: Is your purpose to purchase an established property, build, or refinance? Each purpose has a different risk rating applied by the lender.
Different types of security represent different risks to the banks and will require a detailed valuation and risk assessment. Standard commercial security properties are Offices, Factories, and Warehouses. Lenders will also provide commercial loans for land subdivisions and other more specialised securities.
Lenders will require Mortgage over property, General Security Deed and Directors Guarantees to secure your Commercial Loan.
In assessing a commercial loan the lender may adopt several income verification options such as Full Doc, Lease Doc, Lo Doc and Accountant prepared Forecasts.
What are the typical features of a commercial property loan?
- Term: Up to 15 years (longer on application) or 30 years for residential security.
- Interest only: Up to 5 years (longer on application).
- Line of credit (LOC): Available at higher interest rates.
- Capitalised interest: Available for development or land sub-division finance.
Teo Torrelli, Director of MKS Lending Group has been arranging Commercial Loans since 1985. He will work with the banks to get the loan that best suits your commercial requirements.