Securing a commercial loan

When it comes to commercial properties, they typically offer a higher rate of return, but they can also carry higher risk. Sometimes they can have longer vacancy periods which can put pressure on investors. As they say, no risk, no reward!

As you can imagine, commercial property loans are assessed differently to residential home loans. One of the main differences being the amount you can borrow. This is largely determined by the type of property and the purpose of the loan.

Purchasing for investment, for example, is considered lower risk than purchasing your own business premises.

For more information on commercial loans, continue scrolling or speak to our friendly team today.

When applying for a commercial loan, lenders will look at:

Your capacity to repay – all of your income including expected rental income from the commercial property.

Your deposit and any available equity.

The type of commercial property – whether it’s a factory, office, warehouse or shop-front and its location, together with a valuer’s report.

Details of the commercial property lease and conditions.

Key differences between commercial and residential properties

If you are unfamiliar with the key differences between commercial and residential properties, we can help shed some light for you below.

  • Residential leases have an average term of 6 to 12 months, while commercial property leases generally run for longer.
  • Commercial properties can be harder to fill vacancies for so run a greater risk of lengthier vacancies.
  • The lessee bears the costs of maintenance, rates and repairs. This means the property owners pocket more of the rent as profit.
  • Buying a commercial property involves paying Goods and Services Tax (GST), which may increase the cost of the property you’re looking to purchase by 10%.
  • In residential properties, the property owner is responsible for these expenses.


How We Can Help

Our team will help you search, choose and settle your loan. 

We have access to a wide variety of lenders, including major banks and non-bank lenders which we consult to source for you your ideal financial solution.

We will act as the customer advocate when speaking to Lenders to help problem solve and tailor a solution that suits your needs. We also liaise with them for any requirements throughout the process and assist with the paperwork.

Whether you’re looking to purchase your next commercial property or would like more information on commercial loans, contact us today.

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Contact Us

Our team will help you search, choose and settle your loan. Contact our team for more information on your loan options.


0490 856 100