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03 9855 9290

Commercial Loans

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Commercial Property Loans

Commercial loans are typically used to acquire, refinance, or redevelop commercial property such as office buildings, shopping centres, industrial warehouses or apartment complexes. People usually want to acquire these as an extension of their own business or as an investment.

Commercial mortgages are more complex than home loans so it pays to work with a qualified and experienced commercial mortgage broker – someone like MDM Finance.

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Why You Need a Finance Broker For A Commercial Loan?

Commercial loans are not calculated according to the land value, as are home loans, but are generally priced on risk. Risk is determined by such things as the location of the property and the demand for the type of property. The more specialised the property, the lower the demand.

For instance, offices and warehouses are regarded as standard commercial properties because they appeal to a larger selection of tenants, whereas spaces built for a specific purpose such as service stations or motels are considered to be riskier because the pool of potential tenants and buyers is limited only to businesses in that sector. The more risk you present to the lender, the higher your interest rate will be.

MDM Finance specialises in commercial property loans. We can advise you precisely on what you need to know before you make an application.

We have excellent relationships with key lenders and can search out the best loans as we know each lender’s different criteria and loan options. We will also be able to help you negotiate the terms of the loan, especially on larger loans.

commercial finance broker

What You Need To Be Approved For A Commercial Loan?

For a home mortgage, you usually just need proof of your savings,
a statement of current employment and the deposit. Commercial loans require quite a bit more.
You will need:

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Your income details, your deposit the rental income of the property and any equity from other investment properties
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Information concerning any existing lease, including the length of the lease agreement
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To demonstrate how you will afford to maintain the property and make repayments if the property does not have a tenant
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Line up a tenant as soon as possible if the property is vacant
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Details of the property itself, including the asset class (that is, whether it is a shop, warehouse, office), its location and valuation.

You will need to pay for:

Commercial valuations upfront
(Generally higher than residential valuations due to their complexity)
Lender Legal Costs
(Covering preparation of legal documents and services)
Lender Application Fees
(Negotiated and tailored to each deal).
MDM Finance Solutions has a portfolio of happy clients who have been approved for a variety of commercial loans.

For superior commercial loans advice, contact MDM Finance today!

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