Commercial Property Finance
Funding for commercial properties can look a little different.
Often our clients use special purpose investment structures to purchase their commercial properties. This could be in the form of a trust, a company or a self-managed super fund. We work closely with their accountants and their legal representatives to ensure the lending is set-up in line with their overall strategy.
Commercial loans can differ from a home loan or residential investment loan in a few ways:
* The loan term can be shorter. Sometimes the loan is a "set and forget" facility with a 15 or 20 year loan term as opposed to a 25 or 30 year home loan. Sometimes the loan term is aligned with the commercial lease of the property and sometimes they are shorter terms to access the most competitive interest rate. We review these options for you and provide a recommendation based on your individual circumstances
* There can be significant set-up costs
If it's your first commercial purchase you may be surprised by the lender and set-up fees. There can be establishment fees, valuation costs, lender legal fees as well as your costs in setting up the correct purchasing structure
* Lender borrowing calculations vary
Servicing buffers are generally based on interest cover and commercial rent is commonly excluded unless there is a lease in place. There are various other differences that we can explain based on your own scenario
We know that every business and commercial venture is unique, which is why we offer tailored commercial funding options to help you grow and succeed!
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