No Doc Commercial Property Loans Overview

What do No Doc commercial lenders look for?   With No Doc Commercial property loans, as well as sound commercial security, lenders need to know the borrower can pay back the loan. For this reason they focus on

Sound Commercial Security  looking at the quality and location of the asset being offered, and

Exit Strategy  as to how the commercial loan is to be repaid

Loan size   Minimum loan size is $300,000.  Most No Doc commercial finance is done up to $1m.  No maximum loan size.

Term   From 1 year to 3 years. No Doc commercial property loans are normally only for a short term, as they are meant to be used as in between loan.

  • LVR 
  • 45%
  • 65% unlimited, and assessed on its merits

Indicative No Doc Rates  As a guide, for standard No Doc commercial properties, variable rates normally start from around 6.3%

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,…
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…
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…
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…