Warehouse Loan

Warehouse loan by Realloans Australia

To take a leap into the commercial real estate, investors have the benefit if they acquire warehouses. Warehouse loans are quite famous in Australia. If a lender is ready to consider the warehouse loan application, it comes down to strengthening your case. It will also be enough to present plenty of financial evidence in support of a good borrower profile. 

How much can I borrow?

There are a few points you need to consider when you are planning to get a warehouse loan. The following will be beneficial:

  1. You have the opportunity to borrow up to 70% of the property value or up to 100% when you have a residential property or a guarantor as a security.
  2. If your case is strong enough, the commercial mortgage interest rates will be in your favour. However, it does vary from lender to lender. 
  3. Most of the lenders offer PI (principle & interest) payments and commercial interest only mortgage payments. 
  4. If you have a requirement of over $5,000,000 then the lenders lend money on a case by case basis. 
  5. The maximum loan only term for a commercial warehouse loan is 20 years and the maximum interest only term is around 5 years. 
  6. Borrowers who have plans to run a business in the warehouse, will have to present a business plan in support of the application. 
  7. For a commercial showroom you can borrow between 70%-75% of the property value. 
  8. For a storage unit as well, you can borrow up to 75% of the property value. However, leasehold is considered on a case by case basis. 

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