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Commercial Property Loan?

Discussion in 'Property Finance' started by WestOz, 17th Feb, 2016.

  1. WestOz

    WestOz Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    625
    Location:
    WestOz
    Hi All,
    Just a quicky, gotta mate renting a very cheap factory unit (140sqr = 13k incl p/a) that his grown out of, layouts not really suitable.

    Have no idea re commercial property loans, wondering "roughly" what his repayments could be on a 350k loan?

    Apart from whats required for residential approval, anything else likely to be required?

    Thanks...
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    2,757
    Location:
    Perth WA
    Between a 60-80% LVR generally, higher rate depending on what he's buying. Shorter loan terms, from 15-25 yrs.
     
  3. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
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    641
    Location:
    Sydney
    Really depends on what loan term and LVR you are after.

    Suncorp = 4.39% on a 15 year term ($2,658 p/m)

    If you are looking for 25 year term loans at say 75% LVR then you would be looking at mid to high 6%'s = approximately $2,418 p/m

    You are saving on the interest rate with say Suncorp but you monthly outgoings are lower with other lenders that provide a longer loan term.
     
    Jess Peletier likes this.
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Location:
    Gold Coast
    Annual reviews can be a challenge with typical comm lends.....................

    ABL et al will do15 to 25 yr comm lends without annual reviews, which can be worth gold.

    Higher rates though............... obviously

    ta
    rolf
     
  5. WestOz

    WestOz Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    625
    Location:
    WestOz
    Thanks guys, as said just a ruffy re buy vs rent monthly outgoings.

    Much quicker asking a ballpark Q on here than spending time away from making $'s while having meetings etc with sales agents/brokers etc only to find out it's unaffordable.
     
  6. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    Location:
    Adelaide, SA
    75% LVR, 25 yr term, 5.29% - no reviews
    5 years IO: $1,542 per month
    P&I from day 1: $2,105.63 per month

    Can get the rate below 5% under fixed. Funding has gotten a lot cheaper for commercial, making commercial a strong alternative.
     
    Jess Peletier likes this.
  7. charpj

    charpj Well-Known Member

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    21st Sep, 2015
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    Location:
    Melbourne
    Annual reviews are nasty, know of one bank that was charging their client $4,000 a year in review fees.

    ING and Liberty are good set and forget (as in not reviews)
     
  8. imbi3

    imbi3 Well-Known Member

    Joined:
    27th Jun, 2015
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    69
    Location:
    VIC
    You could get 15 years terms with 80% LVR at ANZ, with no annual review
    Pretty much same documentation required for residential approval. Valuation could be waived if it is on market purchase etc