Commercial property loans
Lenders offer a wide variety of commercial property loans. The sort of loan best suited to your needs will depend on whether you are buying commercial property as an investor or as a business owner.
Commercial property loan rates vary between lenders though they are often higher than for a normal home loan. That’s because commercial property can be seen as a riskier investment. Offering residential property like your home or rental property as security can help to lower commercial property interest rates.'
Be prepared to pay a higher commercial property loan deposit
Commercial property loans usually need a deposit of at least 30% of the purchase price.
Different types of commercial property loans
Most commercial property loans work in much the same way as a home loan.
Choose between a variable rate, fixed rate, split rate, principal and interest or interest-only loan. Many commercial property loans also come with useful features like fee-free additional repayments or an offset facility.
Alternatively, you may prefer a line of credit commercial property loan. This gives you funding up to a predetermined limit and you only pay interest on the funds drawn down. Your Mortgage Choice broker can help you select a commercial property loan suited to your needs and budget, giving you a clear idea of how much you can afford to borrow and the regular loan repayments.