Commercial Property Loans
Are you a business owner, developer or a professional investor looking to buy or refinance a commercial property in Australia?
Realloans Australia has been providing commercial property loans in all cities across Australia for over a decade.
Whether you are buying your commercial property, refinance your exiting commercial property loan for better interest rate or cash out or require construction loan for your next development, Give us a call for competitive rates.
Why Realloans
Why use Realloans Australia?
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Expert Commercial Loan Brokers
Realloans Australia have most experienced commercial loan broker in Australia, that specialises in commercial property loans.
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15+ Commercial Lenders
With a good list of lenders available, Realloans Brokers will provide you with the best low doc loan option that is best suited for you.
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Easy Loan Approval
From first contact to settlement, Realloans broker will guide you throughout your loan process and help you have a quick easy loan approval.
At a glance
Commercial Property Loan Features
- Loan purpose is purchase, refinance, construction or release equity from commercial real estate
- Max Loan Size $25m
- Owner-occupied or investment
- Individual, Partnership, Company, Trust and SMSF
- Maximum LVR 80%
- Loan term 15 – 30 years
- Repayment Type: Principle & Interest and Interest Only 1-5 years
- Unlimited Cash Out and Debt Consolidation
- Borrowers with bad credit accepted
Commercial Land Loan Document Requirement
- Recent Individual Tax Return for each director, guarantor or spouse
- 2023 Tax Return, Profit & Loss and Balance Sheet for existing trading business or associated entities
- If any applicant is working PAYG – 1 x payslip with YTD income and 3 month’s salary credits via bank statements
- ATO Integrated Tax Portal Running balance covering 12 months for the trading business
- For Rental Properties, 3 x monthly Rental Statement OR a copy of the lease agreement
Overview
What Are Commercial Loans?
Commercial property loans are designed for business owners, developers and professional investors who are looking to buy a commercial Property, refinance a commercial property with or without cash out or construct a commercial or industrial property.
Commercial loans in Australia are offered by a range of banks and non bank lenders along with private lenders. A commercial can either be full doc, low doc, lease or based on forecasts .
Indicative rates
Commercial property interest rates
The interest rate for a commercial property loan will depend on the size of your deposit, the overall risk of your situation, and the documents that you can provide as alternate income evidence.
As a general rule, commercial loan lenders offer pricing dependent on the LVR. The lower the LVR, the lower the interest rate applicable.
Some lenders who specialises in commercial low doc loans offer some very competitive interest rates as long as you have a large deposit (i.e. a low LVR).
A few of our lenders offer fixed rates and interest-only periods up to 5 years. The interest rate for Commercial property starts from 6.59 – 8.14% % at 60% LVR , around 6.84% for 75% LVR and 8.99% for 80% LVR for a non-specialised commercial real estate.
Loan Rate For Commercial Property
Security
What Types of Properties Can I Use to Secure a Commercial Loan?
The types of properties that can be used as security for a commercial loan include shop fronts, warehouses, retail shops, offices, rural farms, factories, or residential property. Specialised commercial properties are considered on a case-by-case basis only.
The loan term for commercial loan can be for 15 to 30 years depending on the lender.
Standard commercial property with smaller loans usually are set-and-forget facilities as compared to set-and-forget facilities with larger commercial loan will require annual reviews.
- Industrial Property – Warehouse, Factory, Manufacturing & Storage
- Shops & Retail – Supermarket, Bakeries,
- Offices
- Commercial Land- Greenfield, Infill Land & Brownfield Land
- Apartments, Boarding Houses
- Medical and Consulting
- Commercial Farming and rural
- Special Purpose commercial real estate – Childcare, Petrol Station, Car Wash, Funeral Homes, community halls.
Low Doc Commercial Loan Lenders
We are accredited with a large range of lenders so we can provide a solution for your finance needs. We source and negotiate finance with the major banks, second their banks, non banks and private lenders.
The finance for purchasing commercial properties in Australia are offered by major bank, second-tier banks, non bank lender and private lender.
Commercial Property Finance For
- Warehouses
- Office Buildings
- Shopping Centres
- Factories
- Shops
- Land Subdivisions
- Residential Property Development Finance
- Block of Strata units
- Block of Flats
- Multi Unit Development
Borrowing power
How Much Can I Borrow?
Commercial loans are very different to home loans where you can get finance up to 95% of the valuation, but in commercial lending you can only get 80% loan of the commercial valuation. Also to note that, there is no LMI in commercial lending.
On a typical small loan of up to $1 million, the maximum you can generally borrow is about 80% of the property’s price.
However, if an applicant has some additional property that can act as a security, the amount can be increased. In case an applicant is taking loan on a single property then the maximum he can borrow is 80%.
The higher the loan amount, generally you’d be getting the loan-to-value ratio down below 75%, and then 70% is the maximum most banks are comfortable with, which makes it above $1 million.
Up to 100% or less of the property value using a guarantor to secure your loan.
Up to 80% of the property value for loans up to $1 million.
Up to 75% of the property value for loans up to $2 million.
70% of the property value for loans up to $5 million.
Loans between $5 million to $50 million are assessed on a case by case basis.
FAQs
Commercial Property Loans FAQ
What is the minimum amount can I borrow for a Commercial loan?
The minimum property loan depends upon the credibility of the individual or company, the land and the locality where the property is brought. To be precise, property loan is generally 75% of the total market value applicable. There are some other factors like the age, qualification, financial capacity and other criterion that depends on the amount that will help the amount of property loan that you can avail.
What is the interest rate of a commercial loan?
There are different rates of interest provided by different organizations. If you are taking a loan from a bigger bank then you can see that the rate of interest is low as they have low risk factors. On the other hand, if you take loans from the private sector or small banks, you can see that they are having more interest rates as there are more risk factors related to these sectors. There you can consider that all the sectors that are providing property loans have different rates of interest.
What are different types of commercial real estates on which you can get a loan?
Factories, Warehouses, Industrial, Office buildings, Shopping centres, hotels, motels, pubs, Shops, showrooms, rural, Land Subdivision, residential property development finance and more.
In which cities does Realloans provide commercial loan?
Realloans provide commercial property loans in Melbourne, Brisbane, Sydney, Perth, Adelaide, Canberra and other cities across Australia.
What is the cost of the valuation of commercial proportion and who pays it?
The cost of the valuation varies with property type and location of the property. The cost is paid by the borrower. The valuation can take from 4-5 days to few weeks depending upon the location and type of the property.
Do you offer loan to buy commercial property with no annual reviews?
Yes we have commercial lenders that offer loan with no annual reviews.
Do you offer Commercial loan for borrowers with bad credit?
Yes at Realloans Australia, we offer bad credit commercial property loans. We can assist borrowers defaults, judgments and writs, Mortgage and non mortgage arrears and even discharge bankrupts.