The Complete Guide to Commercial Property Loans

Commercial property loans are becoming increasingly trending in Australia. Many business persons and people are using this loan to purchase a commercial property. The property brought from this loan is used to generate profit for the buyer, either in the form of capital gain or rental income. The borrowed amount earns interest at a fixed or variable rate and needs to be repaid in full before the completion of the loan term.  

There are several lenders and financial institutions in Australia that offer commercial property loans to the customers. The funding of finance provided by this loan can be used to purchase of a wide range of commercial properties, such as: 

  • Factories 
  • Warehouses 
  • Office spaces 
  • Retail outlets 
  • Shopping centers 
  • Industrial sites 
  • Residential unit blocks 
  • Accommodation (hotels, motels, resorts, caravan parks etc.) 
  • Restaurants and pubs 
  • Childcare centres 


Features of commercial property loans 


Commercial property loans come with the following basic features: 


  • Full doc: Individuals, companies, trusts and self-managed superannuation funds are acceptable. 
  • Available for long terms: Up to 15 years or 30 years for residential security. 
  • Several types of interest rates offered: Variable, fixed or bank bill facilities. 
  • Additional repayment feature: Available on variable loans. 
  • Redraw facility: Allowed for amounts that the buyers have pre-paid. 
  • Line of credit (LOC): Available at higher interest rates. 

The purpose of a commercial property loan 


Many people still think that a commercial property loan is used only for buying a new home to their business. But this not entirely true. Nowadays, this loan can also be used to serve the following purposes:   

  • Develop existing property   
  • Develop new property   
  • Extend current premises   
  • Residential developments and projects   
  • Commercial developments and projects   
  • Buy land  

Documents required for commercial loans  


There are several different types of documents that are required to be submitted in terms of security while applying to a commercial property loan. Some of these basic key documents include the identity proof, address and income proof.  


Apart from these documents, the borrower is usually required to provide a residential property as security. Despite the collateral provided by the borrower, most banks also ask for a General Security Agreement (GSA) over the property and any and all of the borrower’s business assets.  


However, if the borrower is able to afford the loan, then his mortgage broker can claim against a General Security Agreement (GSA).  


Experts advice on commercial property loans by Your Finance Adviser  


Your Finance Adviser is a reputed finance advising company that specialises in providing home loan advice to people to fulfill their dreams of owning a home in Australia. We can guide you in getting the perfect home loan that fits into your budget. We have a team of the top home loan brokers in Australia that will assist and guide you thoroughly about commercial property loans and help you in understanding the loan's features and eligibility criteria.   


Are you buying a commercial investment property? Talk to our home loan brokers in Australia about your commercial property loan! 


Give us a call on 1300932276 or write to us at info@yourfinanceadviser.com.au 

Location: Australia

Comments

  1. MagmaloanAugust 28, 2021 at 1:06 PM

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