Overview

How much can I borrow?   As every commercial property is different, commercial finance is always done on a case by case basis.

Loan size   Minimum loan size is $300,000.  Most commercial finance is done up to $1m.  Over this size, loans are assessed differently. In commercial finance  there is no maximum loan size.

Term   From 1 year to 30 years. 15 years is the most common commercial property loan term.

  • LVR 
  • 80% up to $1m
  • 75% up to $3m
  • 70% up to $5m
  • 65% unlimited, and assessed on its merits

Indicative Rates  As a guide, for standard commercial properties, variable rates normally sit between 4.5% to 6.5%. Larger commercial loans can be done cheaper than this.

Pros and Cons of commercial loans in financing business 

When trying to set up a business or company, the startup cost is usually a lot for the business or company.  Such a scenario is true for an existing establishment that is trying to expand its activities. Huge investment is needed for acquiring heavy equipment and purchasing or leasing commercial properties to accommodate the operations…
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Profitable areas to purchase commercial properties in Australia 

Are you an investor who wants to invest in a commercial property locally? Before thinking to acquire a commercial property, it advisable to carry out enough market research to be aware of the existing trends. Importantly, the underlying factor that should guide you towards any commercial investment should be it potential to have higher yields…
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Major property trends to expect in 2018 

The trend in 2018 seems to be mixed for the commercial property market. Even though growth takes place at a slow pace, property values will be higher at the end of the year.  Many analysts didn’t anticipate the average price rise would be stronger the way it was in 2017. As auction clearance rate dropped,…
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Construction loan usefulness to a borrower 

 If you have done your background check, and prefer building a new home in Australia instead of buying an already built home, then, a construction loan is for you. Interestingly, the good thing with a construction loan is that apart from securing for building purpose, you can also secure it for making key renovations to…
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Commercial Loan Features 

Interest Only  A borrower can negotiate with lenders interest only repayments. Lenders can only allow this situation if the business has large cash-flow deposits that are capable of making large interest only repayments before its period expires.  The common interest only commercial term loan is 1-2 year term.  Select commercial loan lenders prefer a 5-year…
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Pros and Cons of Engaging a Commercial Real Estate Broker 

Earning money involves a lot of hard work, and no one wants to lose it casually, so people want to save every bit. So, you cannot afford to go solo when you need to slice some few bucks off a significant real estate deal. Just ask yourself whether it would be worth it to spend…
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Commercial Specialists

Commercial Specialists INCOME FROM DAY ONE It's all about the cash flow. An example. Purchase price $1m. Govt costs (including stamp duty) and misc $50,000 Total cost $1,050,000 Option 1 Deposit of 20% say $200,000 plus $50,000 for costs. Total outlay $250,000 80% Commercial loan is $800,000. Assumption is deposit is borrowed on a residential…
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