We’ll need a few items from you to start the process which may include but are not limited to:rnrnProof of income (pay slips and bank statements)rnA deposit backed by a proven savings historyrnA good credit history (we can still help if you don’t)
Commercial lending is typically more restrictive to residential lending and that is reflected in a higher deposit requirement. At least 20% plus purchase costs will be required for purchase but in some cases utilising residential property as security for the purchase can reduce this.
The assessment of this is generally different to a residential loan. In order for us to be able to calculate this we would need to assess your full financial situation.
As well as the normal fees associated with the purchase of property like stamp duty and conveyancing you will need to plan for more expensive lender related costs including valuations, application and settlement fees. It is also worth noting that given the inherent risk in commercial property ownership you should expect to pay a higher rate of interest and a reduced loan term relative to residential property.
Variable interest rates move up and down and normally relate to changes in official interest rates set by the Reserve Bank of Australia (RBA). A variable rate loan is beneficial when rates are on the decline.rnrnFixed interest rates don’t move. You can set (fix!) your rate for a particular period of time, normally between one and five years, and is most beneficial when interest rates are on the rise.
You should expect 15 to 20 years in repayment terms. This can be increased in some cases when utilising residential security to facilitate the purchase.
