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Finding a right commercial property to make an investment needs much more efforts than a residential one. It’s obvious that it’s better to buy the property than renting it. As buying will offer you capital returns and will remain your investment until you sell. A commercial property includes retail premises like shops and supermarkets, office spaces, business centres, warehouses and hotels. Owning a commercial property also offers tax advantages to the investors adding diverse properties in their portfolios.
Do you ever think what is the difference between financing commercial property and financing residential property? Here some of the major differences are given:
- In residential property, you can finance 90%-95% of the amount usually. On the other side, in commercial property, you can finance nearly 70% of the property value.
- The commercial property loan terms are lesser, between 15-20 years, whereas, the residential property loan term is for 30 years.
- The lease terms also differ. The commercial property lease term is longer generally and the residential property lease term is between 6-12 months.
Searching a commercial property to invest might be easy, but its purchase is not. Get the right experts to help you through the commercial property financing and its process. Commercial property is not an asset that you just purchase and sit back. Scenarios and conditions change, especially the economic ones, thus, it is imperative to stay updated. Thus, there are certain merits of involving a mortgage broker while applying for Commercial Property Loans in Australia, such as:
- Tracking the appropriate lender –It is not an easy task to find out a perfect lender for your business loans. You will have to waste a lot of time in the search of the lender. For this purpose, a well-qualified and highly experienced mortgage broker is required who will find a lender for you without wasting your time. Mortgage brokers with good relations with the lenders will help you get best loan options.
- Dealing with multiple lenders – There is always a risk in dealing with a single lender as it takes a lot of time for the completion of whole process and approval of loan. However, in case, if the loan is not approved by the lender, you will have to repeat the whole process for other lender. Thus, with the aid of an experienced mortgage broker, you can deal with multiple lenders and can submit your loan application to them for approval.
- Comparison of costs offered by lenders – With the help of mortgage brokers, you could easily compare various interest rates, costs and the fees offered by different lenders. The brokers will help you to choose the lenders offering reasonable rates among other lenders.
A broker can help you explore multiple financing options as per your borrowing power and repayment capacity, such as –
- Low doc/no doc commercial loans-This loan type is ideal for those who are self-employed, small business owners or someone with irregular income sources, low doc/no doc loans are available from top Australian lenders.
- Commercial property finance-Whether you need funds for expansion, purchase, leasing, investment of refinancing a commercial property like offices, factories and retail sites, you can get Interest-only or Principal and Interest Loan, Variable or fixed rates, Construction loans, Full doc, Low doc and No doc funding options.
Take the help of a broker when you have made up your mind to go for Commercial Property Loans in Australia. A broker is of great help when it comes to evaluating financial capabilities of a borrower, find appropriate loan as per the needs, works on repayment plan, handle the entire paperwork and follow up at all stages.
A professional mortgage broker will definitely help and follow up at every point. They will be with you from the pre-approval to the settlement stage.
