How to secure Commercial Property Mortgage in Australia

Moving to a new space or just renovating your current place is generally a huge step for a small and medium-sized business leader- so it would be best if you understand the commercial property lending process ins and outs before you get too far in over your head.   

Since commercial real estate mortgage comes with its unique set of rules and factors that impact how much you can loan and what amount you’ll need to pay. By understanding how to navigate commercial property mortgage, you’ll be well informed to attain your business’s best rate and terms.   

So, let begin the process by learning its basics: what is commercial property, and how does mortgage works?   

What is a Commercial Property mortgage?  

Commercial property, as the name illustrates, is a property that is used solely for business purposes. If you plan to expand your business workspace or move to a new location, you can take a commercial property mortgage in Australia to help finance the process. This type of loan is a typical option for those who have a limited liability company or an s-corporation.  

How does a commercial lending process work?  

The process of applying for a commercial mortgage is the same as a residential property loan. However, when you want to take a loan for commercial property, lenders typically have a set of requirements to approve your application. Lenders will consider such things:  

• Borrower’s capability to repay the loan.  
• Borrower’s income and net position    
• Borrower’s deposit and any available equity   
• Past three months or more of finance statements  
• Details regarding commercial property type  
• Basic information of commercial property lease and condition  

What to consider when applying for a commercial mortgage  

Approach expert commercial lenders:  Before applying for a commercial loan, you must become familiar with commercial lenders. Other than banks, several non-bank finance companies are specialized in offering mortgage for commercial property to all sized businesses in Australia. It is such a good option for you if you are in a hurry to get a mortgage.   

Consults mortgage experts to get the best deal: To get a commercial loan is complex than attaining a residential one. In some cases, lenders or banks don’t publish their policies and rates. This is why it became hard for many first-time buyers to understand the process. However, when you approach the best mortgage broker Sydney, he’ll help faster the application process and negotiation with lenders.   

Shorter loan terms: Unlike a residential loan, a commercial loan doesn’t pay off for a 30-year term. Generally, smaller commercial mortgages are paid off over considerably shorter timeframes between 15 to 20 years. As a result, you need to show your stronger capacity to repay the loan. Since the principal will need to pay down in a shorter period thus, the repayments will be higher.  

To secure any commercial loan, be sure you shop around multiple lenders to determine the best offer which suits your budget. An expert broker will help you by doing your homework and assist in preparing paperwork. And if you’re planning to approach Home Loan Broker in Cheswick, connect with Rajan Khatak- a trusted mortgage expert at Your finance adviser. Your finance adviser is a leading finance advising company in Australia that helps clients achieve their long-term financial goals.