Commercial Property Loan

Critical information sheet

Our loan guide

Loan amount

Starts from $100k

Interest rates from

From 10.99% p.a.

Loan term

No Doc: Up to 3 years | Lease Doc/Full Doc: Up to 30 years with up to 5 years Interest only option

Pre-approval time

24 – 48 hours

Unconditional approval & settlement time

10-15 Business days

Repayments

Principal & Interest | Interest Only & | Capitalised Interest

Security

Required with funding possibilities up to 80% Loan to Value Ratio (LVR)

What you need to know

Can be used for

To purchase a commercial property

Refinance into a lease doc loan

Documents required

Valid identification proof

Security Details

Exit Strategy

Others depending upon loan product

*The information provided in critical information sheet is intended as a guide only. Please contact us for more information.

What you should know about commercial property loans

Have questions? Speak to our experts!

1300 253 041 Apply Now

What types of commercial property loans are available?

Traditional Commercial Mortgage: A standard loan for purchasing or refinancing commercial real estate.

Commercial Bridge Loans: Short-term loans used to bridge the gap between immediate financing needs and long-term funding.

Commercial Construction Loans: Loans used to finance the construction or renovation of commercial properties.

Private Lenders Loans: Short-term loans provided by private lenders, typically at higher interest rates, based on the value of the property.

Pros and Cons of commercial property loan

Pros

Investment opportunities: Allow businesses to invest in real estate, providing opportunities to generate income through rent and potential property appreciation.

Long-term financing: This loan comes with longer terms than other types of business loans

Cons

Higher Deposit: Commercial property loans typically require a substantial down payment.

Higher Interest Rates: Commercial Property loans often come with higher interest rates compared to residential property loans, although some lenders offer comparable rates.

What types of commercial property loans are available?

Traditional Commercial Mortgage: A standard loan for purchasing or refinancing commercial real estate.

Commercial Bridge Loans: Short-term loans used to bridge the gap between immediate financing needs and long-term funding.

Commercial Construction Loans: Loans used to finance the construction or renovation of commercial properties.

Private Lenders Loans: Short-term loans provided by private lenders, typically at higher interest rates, based on the value of the property.

Full doc vs low doc

Full-doc loan

Requires Financials, tax returns, lease agreements, ATO Portals, BAS Statements etc.
Comparatively cheaper and longer term as compared to a no doc/low doc loan option.
Approvals may take longer as compared to a no doc/low doc loan option.
While this option demands more upfront effort, it gives a greater confidence for lenders due to detailed documentation which in turn provides customers with a more competitive interest rate.

No Doc/Low-doc loan

No financial statements or tax returns are required.
This gives businesses with tight profit margins more choices and flexibility, usually offered by non-bank 2nd tier / private lenders.
Comparatively expensive and shorter term as compared to a no doc/low doc loan option.
The application and approval process is usually quicker as compared to a full doc application.

What’s considered a Commercial Property?

Properties that are considered commercial typically fall into various categories, and these include:

Properties intended for retail businesses, such as stores and shopping centres.

Properties used for manufacturing or storage purposes, including factories and warehouses.

Properties associated with the hospitality industry, including hotels, motels, clubs, childcare centres, and petrol stations.

Properties used for medical purposes, such as clinics, hospitals, or medical offices.

Properties that combine different types of usage, such as a building with both residential and commercial spaces.

Properties related to agriculture, including farm buildings or structures used for agricultural purposes.

These categories encompass a wide range of commercial properties, each serving a specific purpose or industry. The distinction between commercial and residential properties is primarily based on the property's use and intended function.

Key Factors to consider while applying for a commercial property loan

Risk and Interest Rates:

Commercial properties are seen as riskier investments, so lenders charge higher interest rates and have stricter rules for commercial loans. However, the interest costs can be claimed as a business expense and in case of leased properties can be set off against lease income.

Application Process:

When you apply for a loan for a business property, lenders not only look at your financial situation but also consider the property itself, including its potential income, location, and demand in the market.

Costs and Valuations:

Getting a commercial property valued is more expensive, and you might have to pay for it yourself. In contrast, lenders usually cover valuations for homes valued under $2,500,000.

Regulation Differences:

Unlike home loans, commercial loans aren't as regulated. This means you won't have the same protections, and the rules are different.

Insurance and Loan Terms:

There's no Lender's Mortgage Insurance (LMI) for commercial loans, so you'll likely need a bigger upfront deposit. Commercial loans also have shorter terms compared to home loans.

Pricing and Serviceability:

Pricing for commercial loans varies a lot, depending on factors like the type of business and its location. Lenders also use a different method to make sure you can afford the loan.

Costs and Reviews:

Commercial lending is generally more expensive, with higher interest rates and fees, especially if your business is considered risky. The bank will also review your finances regularly even after you get the loan.

Security Agreement:

You might have to provide a General Security Agreement for both the property and your business assets unless the income from the property is high enough to cover the loan.

Understanding these aspects are crucial because commercial lending is more complex than getting a loan for a home.

How do I apply for a commercial property loan?

Submit Application

First step is to simply fill out the application form with the required information and loan request.

Get Indicative Quote

Once the application is received, our lending specialist would get an indicative quote within 24-48 hours.

Letter of Offer (LOO)

Once we receive the mandate to proceed basis indicative quote, we get a formal letter of offer from the lender.

Valuation and Legal Docs

On receipt of signed LOO, the lender would initiate valuation and get loan docs prepared.

Disbursement

Once we receive the mandate to proceed basis indicative quote, we get a formal letter of offer from the lender.

Commercial vs Residential property loan

Commercial loans are not the same as home loans, and they have some important differences. Here are some key differences in a snapshot.

Start loan application

Commercial Property Loan

For business entities to purchase a property for business use

Usually up to 80%, though this varies from lender to lenders depending on the nature/product

Generally higher than residential property loans

No Doc: Up to 3 years | Lease Doc/Full Doc: Up to 30 years

Residential Property Loan

Made for individual borrower to purchase a residential property as a primary place of residence or for investment purposes.

Usually up to 95% with the inclusion of lender's mortgage insurance.

Generally lower than commercial property loans

Up to 40 years

Why should you choose Broc Finance?

In a short tenure, Broc Finance has helped Australian businesses, especially the SMEs to secure diverse financing options and facilitate the same via credible lenders. We have a robust network that comprises the top lenders in the country. Our accessibility to varied business loans makes it easy for businesses to get the kind of financing that’s best suited for them.

Tailor made options

Being a small business owner, many of our clients are not sure of right loan product for their businesses. Our lending specialists understand their needs and recommend tailor made options.

Personal Consultation

Unlike business loan marketplace websites which use AI based algorithms to match your requirements, we provide obligation free personal consultation as every business is different and an AI based algorithm may not provide them the optimum solution.

Competitive Pricing

We endeavour to achieve the optimum business loan solution for our clients at the most competitive pricing possible.

Clear communication

We understand the essence of time so don’t believe in wasting our customers time by giving false hopes. Transparent and clear communication is in our DNA.

Real results with real people.

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Niteesha Nagowah

We had an incredible experience working with Saroj from Broc Finance. He is incredibly knowledgeable, responsive, and guided us through the purchase of our company vehicle with expertise. The attention to detail and commitment to finding the best possible options truly set him apart. Highly recommend his services for anyone navigating the complexities of obtaining a finance. Thank you again for outstanding assistance.

Manpreet Kaur

Our sincere thanks to Saroj ji & his team for their invaluable assistance in securing the loan. We are extremely greatful for his exceptional service & support throughout the process. Highly recommend!

Matthew

Broc Finance were awesome…really responsive and solutions focussed. We especially appreciated having a broker who was an advocate for our interests when engaging with lenders.

Ibrahim Alpay

Saroj and his team is amazing have been using him for business funding for over a year he has found surprising solutions when others couldn’t make it happen very skill full with negotiating high loan amounts that I would never expect at wonderful terms and rates look no further I recommend broc finance for your business lending purposes look no further and don’t think twice much appreciated won’t go to any other broker at all many thanks to his team !!!!!!

vishal srivastava

We have used Broc Finance over last 2 years for various business line of credits and vehicle loan. Broc finance have been very professional in this journey. They have understood our needs as business and catered the solutions as per requirement . They look around in market and get one the best financial solution for the business be at vehicle of line of credits . I would strongly recommend the business for there services

Nasir sabiry

Thank you very much in helping me with financing a car SAS. You have been very professional and responsive every time I needed information. Fully recommend to any looking to finance a car.

Tajinder Kumar

For those seeking a trustworthy and dependable financial broker, I would like to recommend Broc Finance. While their fees may be slightly higher compared to other brokers, I found that their personalized approach made it worth it. Broc Finance took the time to understand my specific needs and goals and tailored their services accordingly. Additionally, their prompt availability to answer any questions or concerns was greatly appreciated. Overall, if you're in search of comprehensive and professional financial advice, Broc Finance is an excellent option to consider.

Ajay Kanumuri

I would strongly recommend. Saroj Shah helped to get my loan with in span of three days. He was very supportive and clearly explained the loan process.