Commercial property loans FAQs are a comprehensive guide that answers common questions regarding obtaining loans for commercial properties, providing valuable insights into the process, requirements, and benefits associated with commercial property financing.
A commercial property loan in Australia is a loan meant for individuals or businesses who want to buy or refinance a commercial property. This could include office buildings, retail spaces, or industrial warehouses.
Commercial property loans have different requirements and terms compared to residential mortgage loans. They may require a larger deposit and more detailed financial information.
Most lender will lend to on a commercial or Industrial property is 65% LVR but you can borrow up to 80% of the property value of a commercial property.
There are several types of commercial property loans available in Australia. Some of the common types include:
Full doc Loans: This commercial property loan requires you to provide full financial statements.
Low Doc Loans are commercial loans that require minimal documentation and are designed for self-employed or small business owners who may have difficulty providing traditional income verification.
Lease Doc: A lease doc loan is a loan in which the lender relies on the strength of the rent income from the property used to secure your loan. It does not require full evidence of your income.
No Doc: You won’t need to provide any evidence to get a commercial property .
Mezzanine loans are a type of secondary financing that falls between senior debt and equity in a commercial property transaction. They are commonly used to bridge the gap between the amount of senior debt accessible and the overall project cost.
A knowledgeable financial broker can find the most appropriate form of commercial property loan based on individual circumstances and requirements.
These loans are designed for a variety of individuals and entities, including Self Managed Super Funds (SMSF), companies, partnerships and trusts.
Medical and health professionals can borrow up to 100% Loan-to-Value Ratio (LVR) and no Lenders Mortgage Insurance (LMI).
Commercial properties include office buildings, retail spaces (designed for offices and related businesses), industrial buildings (for manufacturing, warehousing, and distribution), hospitality buildings (such as hotels and resorts), medical buildings (for healthcare facilities), mixed-use buildings (combining residential and commercial spaces), agricultural properties (farms and vineyards), and commercial land (used for shopping centers, office parks, and industrial sites).
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