Commercial Property Loans

If your looking to buy or refinance a commercial property then we can help. It can be difficult to find information about lenders policies, terms and interest rates but we have the skills and knowledge that you can rely on. Here is some basic information to get you started.

The Loan Amount

Commercial property lenders each have their own policies but as a general guide. The loan amounts available are:

  • 100% of the property value using a guarantor to secure your loan.
  • 80% of the property value for loans up to $1,000,000.
  • 75% of the property value for loans up to $2,000,000.
  • 70% of the property value for loans up to $5,000,000.

Commercial property loans from $5,000,000 to $50,000,000 are on a case by case basis.

The Property Type

Different types of security represent different risks to the Lenders. Standard commercial properties are usually the best type of security for a commercial property loan. For example:

  • Offices.
  • Factories.
  • Warehouses (including showrooms and storage units).
  • Retail space.
  • Shop fronts
  • Residential (block of units, house, unit or townhouse).

Standard security is classed as:

  • having a wide appeal,
  • is in a good location,
  • and is zoned as residential, commercial, industrial or mixed.

Specialised commercial properties are more difficult to value and sell so they are a higher risk to the lender:

  • Accommodation (backpacker, motel, hotel, resorts, bed and breakfast, caravan parks).
  • Aged care centres.
  • Car yards.
  • Child care / preschools.
  • Farms / other rural properties.
  • Function / reception centres.
  • Land subdivisions.
  • Petrol stations.
  • Commercial property developments (or residental).
  • Pubs / hotels / taverns.
  • Restaurants.
  • Vineyards.
  • Landfill / garbage dump / waste management facility.
  • Supermarkets. Note that there are a few lenders that can consider them non-specialised though.
  • Private schools. Note that most lenders see schools as too specialised but not all of them.
  • Recreation centres. Note that most banks see them as specialised properties but some can consider your application depending on what you plan to do with the property.
  • Shopping villages / centres.
  • Specialised properties will require a detailed valuation and risk assessment from the bank.