What are Commercial Loans?
Commercial loans are used to purchase commercial properties, commercial development, as well as commercial assets and companies. Commercial loans are usually secured by residential or commercial properties that are collateralized. Commercial loans usually are 15 years in duration and are able to be variable or fixed.
Commercial loans are classified into the following categories:
- The Owner-Occupied Property loan
This kind of loan is used to fund property owned by the owner to manage their businesses.
- Investment Property loan:
This type of loan can be utilized to invest in commercial properties, where the property is usually being rented out.
- Commercial Development loan:
This kind of loan can be used to finance the development of properties. To get a detailed understanding of this type of loan, please refer to the blog.
Why do you need to refinance?
There are numerous reasons to look over your loan portfolio and to remain informed. Businesses and investors can be the victims of not looking over their loans for commercial properties. It is recommended to examine your commercial loan on an ongoing basis. When the building is an investment or occupied by the owner, it is even more important to review your loan portfolio.
The advantages of refinancing include:
- Cashflow Boost & Business Expansion:
Refinancing a commercial loan at an improved rate could provide an immediate boost in cash flow for the person applying. This could include a study of the market rate or the purchase of a property.
- To Update the Commercial Loan Facility to a Newer or Better Product:
In recent times, commercial property finance has changed significantly, and it’s much easier to obtain loans over 30 years. It is recommended to examine and revise your loan in order to be sure that you’re in no way paying over what you are required to pay for the loan.
- Rate of Interest Increasing:
With the recent rate hike in Australia and the recent increase in equity, it’s an ideal time to evaluate your current loan portfolio in order to find the best deal. A greater number of banks that offer competitive rates in comparison to the loan you have currently can help your business in both the short and long term.
- To utilize the equity for the business of development
Commercial loan refinancing can be described as an inspection of your loan and will provide the ability to cash flow into your business immediately. You could take the equity in your current commercial loan and utilize the funds to help develop your business.
Current Commercial Loan Product at View
Let’s have a look at the latest products currently on sale.
- Long-term loan:
Loans for commercial properties are offered with a term that is longer than 30 years. Refinancing your property’s commercial loan may provide you with the chance to extend the period of your loan from 15 to 30 years, which can help reduce the monthly payment on the loan.
- Interest Only Loan:
There are commercial loans on the market that offer a lower initial payment. For this period, repayments are calculated based solely on the interest rate of the loan amount and not based on the principal.
- Low Doc/No Doc:
As the name suggests, low-doc and no-doc commercial loans offer the benefits of requiring minimal documentation, quick financial results, and very low odds of falling over.
- Commercial Lease Doc Loan for Investors:
A loan secured by a lease document is not a requirement for proof of income for the borrower. Instead, the lender evaluates the credibility of the rent earned by the property that is used to fund the loan.
- Unlimited Cash Out:
Unlimited cash-out options are now offered in commercial property loans, which allow you to take the equity in the property. In simple terms, an investor in commercial real estate can cash out the money that is trapped in an illiquid investment.
Why should you choose a mortgage broker to refinance?
A broker typically has access to 50+ lenders, which includes bank as well as non-bank small loans. Making direct contact with a bank or contacting an agent for mortgages is an individual choice. However, brokers can be a one-stop shop and will take care of all the legwork for you.
A mortgage broker Credit, the Hub Australia team goes to the aid of clients every day to ensure that they’re making the right choice for financing that’s not quite as affordable as they could. The team also analyzes every client’s unique situation to ensure they have the correct commercial funding in place.
With access to a range of loans from Australia’s top lenders, the team at our disposal is able to offer great rates on deals that are suitable for you but do not necessarily suit your bank’s manager. Remember, we take care of all the job for you, coordinating the entire process from beginning to finish. There is no cost to use our service.
If you’re thinking about whether you could get a lower rate on your current loan, don’t hesitate to discuss. There’s been a change in the market, and I’m sure that your situation has changed as well. Please take a quick look at your record, and our knowledgeable team will discern when it’s time to re-evaluate your loan and make sure you’re in the best mortgage option. Contact our helpful team at 1300782944 or send us your contact information on Facebook. We will take care of looking for your needs.