Commercial property loans for business and investment
The process for securing commercial property loans is different to residential loans. Lenders view these types of loans with higher risk. Simply Finance can help you and your business secure a commercial property loan with competitive interest rates. We work with our group of lenders to secure suitable finance for your business requirements. Are you a business owner buying commercial premises? Or are you an investor looking to buy through your SMSF? Our team of specialists can help progress your business plan.
How much can I borrow?
of the property value using a guarantor.
of the property value depending on its value
Let’s get your finances in order!
To provide you with a guide to how much you may be able to borrow, try our ‘borrowing power’ calculator. This considers your estimated income and expenses to determine an indicative maximum loan amount, to help you with your property search.
A commercial property loan is a type of loan that is used to finance the purchase of a commercial property. Commercial properties can include office buildings, retail stores, warehouses, and other types of businesses. Commercial property loans are typically more difficult to obtain than residential property loans, as lenders view these types of loans with higher risk.
What do I need to apply for one?Jaimee Lee2023-07-31T12:03:23+10:00
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.
What are the benefits of a commercial property loan?Jaimee Lee2023-07-31T12:01:22+10:00
Obtaining a commercial property loan can be beneficial as it enables you to purchase a commercial property that has the potential to generate income. This type of loan provides an opportunity to build equity in property and use it as collateral for other loans. However, there are risks involved when considering the purchase of commercial property, so it is essential to talk to a mortgage broker for advice. Get in touch with us to learn more.
Are there risks with getting a commercial property loan?Jaimee Lee2023-07-31T12:57:34+10:00
The costs involved with a commercial property loan include:
Upfront fees: These fees are typically charged by the lender at the time of loan origination and can include things like application fees, appraisal fees, and legal fees.
Interest: This is the cost of borrowing money and is typically expressed as an annual percentage rate (APR). The interest rate on a commercial property loan will vary depending on the lender, the property, and the borrower’s credit score.
Stamp duty: This is a tax that is levied on the transfer of property and is typically paid by the buyer. The amount of stamp duty that is payable will vary depending on the value of the property and the state in which it is located.
Monthly fees: These fees are typically charged by the lender on a monthly basis and can include things like account maintenance fees and service fees.
Early repayment fees: These fees may be charged by the lender if the borrower repays the loan early. The amount of the early repayment fee will vary depending on the lender and the terms of the loan.
In addition to these costs, there may also be other costs associated with commercial property loans, such as property management fees and insurance premiums. It is important to factor in all of these costs when considering a commercial property loan.
How do I apply for one?Jaimee Lee2023-07-31T14:50:12+10:00
Lenders assess factors such as your credit score, income and business plan to determine whether you qualify for a commercial property loan. Applying for this type of loan may be complicated on your own, so it would be beneficial to contact a mortgage broker to help you apply. Simplify Finance can answer any questions about commercial property loans and assist you in the application process. We research the best lenders and outcomes so that you can rest assured that you are receiving the greatest care and deal possible. Contact us to explore your options and learn more.