For most commercial loans there are normally three main set up costs:-

• Application Fee
• Valuation Fee
• Legal Fees

Application Fee:- This can vary and be up to 1% of the commercial loan amount. As an example, on a $1m commercial loan, this could be $10,000

Valuation Fee:-  For commercial loans a lender normally gets a quote from an independent commercial valuer and this quote is then passed on to the customer.

Legal Fees:-  Dependent on the type of borrower and complexity.

Special Offer: For a limited time one of our commercial lenders has waived the Application Fee.  This is a huge saving, you could save $1000s

Note this offer is only for a limited time and is only available for full document clean credit applications.

So if you are applying for a commercial loan and the lender is going to charge you an application fee, please call us.

This is for both low doc commercial loans and full document commercial loans.

With the rates now so low we are now seeing customers lock into a cheap fixed three year rate. This enables the landlord to know exactly what the loan repayments will be for the next three years. This is then matched against the expected rent coming in.

In some cases, such as in the above scenario, we have seen the commercial properties become positively geared investment properties. The landlord not only has a commercial property asset but also an income stream going forward.

Please call us and we are happy to give you a quote on a commercial interest rate.

You may be pleasantly surprised.

If you are looking for a 3 year fixed rate loan below 6.75% then please call us.

This rate is not a misprint and will not last long.

Update March 17 2012

Fixed rates for commercial loans continue to rise. The above commercial fixed rate has now risen to just over 7%

As a guide normally funding is up to 70% of the value.

This funding is for properties Australia wide. Of course major metropolitan areas are the preferred securities.

If you are looking to invest in industrial, retail and larger commercial properties then please call us.

These securities include but are not limited to office buildings, bulky goods warehouses and major shopping centres.

• Copies of the directors personal tax returns for two years
• Copies of the company tax returns for two years, and full financials
• Copies of cheque account bank statements over the last 4-6 months and details of any overdraft facilities etc
• Copy of ATO Integrated Client account Running balance statement for company to ascertain its current tax position
• Schedule of current lease/hp facilities.
• Current debtor and creditor ageing list

Factors considered when assessing this type of commercial loan, will be strength of customer, overall net position, other real estate owned. cash flows, and future cash flows.

Interest is capitalised when it is not paid month to month and is instead paid at the end of the loan.

This is a scenario that may appeal to you.

A purchase of an office block by a syndicate plus

capitalised interest, plus

lease incentives, plus

funds for capital expenditure.

All done up to a maximum loan to value ratio of 70%

This type of commercial loan may be available as long as the loan size is above $3m. 

Want to know more?

Call us, or fill out your scenario using the contact form and we will come back to you within 24 hours.

It is common for the major banks to charge commercial rates for commercial loans on residential properties.

There is a better alternative.

Providing the security is residential property it may be possible to get a loan for any purpose at all

1. At Residential Rates
2. At Residential LVR (up to 90% inclusive of LMI)
3. At Residential Terms – 30 years

Here a couple of commercial loan scenarios:-

Commercial Loan scenario 1:

Residential security value of $850,000

Refinance and Purchase:

Purchase a commercial property at residential rates and terms

Refinance existing residential loans – Loan in individual names    $300,000

Purchase commercial premises + costs – Loan in business name    $465,000

Total Loan Amt @ residential rates over 30 years                      $765,000 (represents 90% LVR)

This client now has an unencumbered commercial property

With the above  scenario, the customer not only freed up cash flow for the business because of the 30 year term for the commercially based loan, but also saved substantial amounts of money because of the cheaper interest rates.

Commercial Loan scenario 2:

Residential security value of $950,000

Refinance an entire commercial portfolio:

Refinance all existing commercially priced loans in business name                                                                                                                                                       Loan Amount     Interest cost p.a.

Commercial Overdraft @ 10.25%                   $ 340,000               $  34,850

Term Loans total @ 9.65%                             $ 475,000               $  45,837

Leases @ 11.38%                                          $   40,000              $    4,552

Total Interest paid                                                                  $  85,239

Total amount refinanced @ residential rates/ (90% LVR) $ 855,000  $ 59,850

Freed up cash flow & interest saving p.a. Over 30 year term        $ 25,389

Previous term loan was over a period of 15 years. The new lender allowed this over a period of 30 years, releasing cash flow that exceeded $65,000 to the business also at a much cheaper rate.

Commercial Loan scenario 3:

Equity release

Existing Commercial Loan over commercial premises   $ 700,000

Existing Residential premises valued at $750,000, residential loan   $250,000

Total Loans   $950,000

 Client refinanced residential loan to individual name  $ 250,000

Refinanced portion of commercial loan with residential equity business name   $425,000

Total new loans at residential rates, 30 year term and 90% LVR   $ 675,000

 Total Other lender commercial loan after refinance  $ 275,000

Total loans  $950,000

By utilising the equity in a residential property and converting this portion to Residential rates, client’s savings on interest for this portion equated to $14,875 per annum

Any commercial transaction you have before you where there is the availability of residential property as security please call us.  We are happy to discuss any proposition and supply alternatives

Yes!!

One security property with up to four splits (with no additional costs) as far as interest rates are concerned. You can have:

• Offset Accounts
• Variable rate loans
• Fixed rate loans
• Lines of Credits

It gets better!!

You can have different names on these facilities as well….  This means that with a single security property, you can have different names on up to four accounts as below:

1. John Smith investment property loan
2. John and Katie Smith home loan
3. ABC Pty trading as John Smith Electrical
4. XYZ Pty Ltd as trustee for The John Smith Family Trust

It gets better!!

You can have an Offset Account or a Line of Credit not only in individual names but in partnership, business, company, individual or trust names as well.