Commercial Finance refers to loans which are secured by non residential or commercial property.

Commercial loans are more complicated than home loans . When using a broker you need to make sure they have had experience in arranging this typ of finance and are accredited with a wide range of lenders.The types of loans available for commercial lending work in a similar way to home loans but there are generally less options available to you.The main differences are: 

 

Cost

The main difference between home and commercial loans is usually the cost. Using a commercial or industrial property as security for your loan will be more expensive than using a residential property.

Application fees are also usually higher ranging on average between 0.25% & 2.0% of the loan amount.

Valuation fees and lenders solicitor costs are also usually higher and payable by the borrower.These charges will vary from lender to lender.

Your Shire First Mortgages loan consultant can discuss the differences with you at the time of your loan consultation.

 

Amount Available

Many loans using commercial property as security have lower loan to value ratios than are generally available for residential security. This means you won't be able to borrow as much money against your security property

 

Maximum loan terms

 While some lenders do offer loans up to 25 years, most commercial loan terms are generally up to 15 years.

 

Low Doc/Lease Doc Loans

Whilst this type of finance is available there are not a large number of lenders offering the product. Generally the loan to valuation ratio for commercial low doc and lease doc loans is also usually lower.

If you want to use your commercial or industrial property as security, our consultants can assist you with a range of loans available from both bank and non bank lenders.

 

Buying commercial property using your home loan

In some cases we can arrange finance for your commercial property using equity in your existing home or other residential investment. This will help keep costs down, provide you with a lower interest rate and allow you to enjoy a more flexible loan product. Almost all of the loan types listed under our home loans are available for the purchase or refinance of a commercial or industrial property providing a residential property is used as security.

For more information contact us today.