Commercial Lending Rates and Deposit

Discussion in 'Loans & Mortgage Brokers' started by Robot85, 7th Nov, 2020.

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  1. Robot85

    Robot85 New Member

    Joined:
    7th Nov, 2020
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    2
    Location:
    Melbourne
    Hi Folks,
    I'm looking to buy commercial property for mixed use in 2021, can anyone confirm what % deposit I would need and what interest rates I should expect on a 750K loan? I'm particularly interested where the property is on Commercial 2 zoning, as opposed to Commercial 1.

    Cheers.
    Rob
     
    Robot85, 7th Nov, 2020
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
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    Location:
    Gold Coast (Australia Wide)
    A lot will come down to

    the property itself and current tenancy mix, the LVR and if u want a set and forget loan

    ta
    rolf
     
    Rolf Latham, 8th Nov, 2020
    #2
  3. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    1,658
    Location:
    Sydney
    Commercial loans are very different to residential loans - the following are the main points to consider:

    1. Loan term - can range anywhere from 15 to 30 years
    2. Annual reviews (this is one if not the most important point) - some lenders conduct annual or semi regular reviews and some don't have any reviews for the life of the loan
    3. Interest Rate
    4. LVR - can range anywhere from 60% - 80% (maybe lower depending on the security type such as a petrol station)
    5. Fees

    The above is a general guide - going back to you question ANZ has superior in the sub $1mil space, you have no annual reviews, 30 year loan terms, 80% LVR, low fees and excellent rates (e.g 2.95% fixed for 2 and 3 years and equally good IO and P&I Variable rates).
     
    Shahin_Afarin, 8th Nov, 2020
    #3
  4. Robot85

    Robot85 New Member

    Joined:
    7th Nov, 2020
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    Location:
    Melbourne
    Thanks Shahin and Rolf,

    I’ll take a look at ANZ, which we had missed on the commercial lending so far. Do you know if there is any extra difficulty being in Melbourne’s Commercial 2 zoning?
     
    Robot85, 8th Nov, 2020
    #4