So what is a “Commercial loan?”. Why do you need a Commercial Loan?
Commercial loans are far more popular these days and more Mums & Dads become more sophisticated delve into the world of Commercial Property Investment. Commercial lenders are aware of this trend and have made the commercial loan process much easier than many years ago.
So Commercial Loans generally have higher interest rates compared with Residential Home Loans, but we are seeing more and more lenders offer huge discounts to attract more business in the commercial loan space. Some of the interest rates we are seeing now are similar to the lowest Residential Investment Interest rates.
Commercial loan Features
- Up to 80% Loan to Value Ratio for a standard Security
- Up to 25 year terms
- 100% offset accounts are available
- Interest Only available
- Low doc, Lease Doc, Full Doc & No Doc available
- Standard and specialised securites
The interest rate available will depend on a number of factors with some of these being, location of security, Loan to value ration (LVR), type of security and whether the loan is full doc or low doc.
Should you use a Commercial Mortgage Broker?
Definitely without a doubt; the commercial loan space is filled with 100’s of mainstream and second tier members. So you need to know what your best options are when sourcing commercial finance. Bank never publish their commercial loan pricing so they will always try and place a higher margin onto your interest rate. Commercial Mortgage Brokers will know exactly what rates are available at the time, and will know how to negotiate the lowest interest rate possible for your individual situation.
So now you know what a “Commercial loan” is , commercial loan features and why do you should use a commercial mortgage broker.
If you want to know anything else please contact us. You can contact us without leaving home.