There are many type of commercial property loans that are available to you. These include:
- Secured loans: These loans are secured by the property being purchased. This means that if the borrower defaults on the loan, the lender can repossess the property. Secured loans typically have lower interest rates than unsecured loans.
- Unsecured loans: These loans are not secured by any property. This means that if the borrower defaults on the loan, the lender has no recourse other than to sue the borrower. Unsecured loans typically have higher interest rates than secured loans.
- Variable rate loans: These loans have an interest rate that fluctuates with market conditions. This means that the interest rate on the loan can go up or down over time. Variable rate loans typically have lower initial interest rates than fixed rate loans.
- Fixed rate loans: These loans have an interest rate that is fixed for a set period of time. This means that the interest rate on the loan will not change during the term of the loan. Fixed rate loans typically have higher initial interest rates than variable rate loans.
- Line of credit loans: These loans provide borrowers with access to a pool of funds that they can draw on as needed. Line of credit loans typically have lower interest rates than term loans.
- Bridge loans: These loans are used to finance the purchase of a property while the borrower is waiting to sell their existing property. Bridge loans typically have shorter terms than term loans.
The type of commercial property loan that is best for you will depend on your individual circumstances and needs. It is important to speak to a mortgage broker or financial advisor to discuss your options and find the right loan for you.