How much deposit do I need for a commercial property loan?
Typically, lenders require a deposit between 20% and 30% of the property's value. However, this can vary based on factors like property type, borrower's financial profile and the lender's risk assessment.
How much of a deposit do you need for a $300,000 loan?
20% Deposit: $60,000 30% Deposit: $90,000 40% Deposit: $120,000 50% Deposit: $150,000 The exact amount depends on the lender's requirements and the specifics of the property and borrower.
Is it harder to get a loan for a commercial property?
Typically yes but it can be easier income verification, commercial property loans often have stricter criteria compared to residential loans. Lenders assess factors like the property's income-generating potential, the borrower's business experience, and the overall risk associated with the investment.
What loan do I need to buy a commercial property?
The appropriate loan type depends on your financial situation and the property's characteristics:
Full-Doc Loan: Ideal for borrowers with complete financial documentation.
Low-Doc Loan: Suitable for self-employed individuals with limited documentation.
Lease-Doc Loan: Best for investment properties with strong lease agreements.
No Doc/Private Loan: Suitable for a pure business transaction and interest to be capitalized
SMSF Loan: For purchasing property through a Self-Managed Super Fund.
• LVR – We usually extend up to 65% LVR against standard commercial properties, although can consider up to 80%. *The LVR may be lower for commercial properties considered to be non-standard or specialised.
Hence, the minimum deposit that can be considered is 20%
• Term – Up to a maximum of 30 years
• Pricing – Case by case based on LVR, customer profile and risk grade
• Capacity to Service – Standard Business lending servicing policy
applies. It is important to note:
– Living expenses, business and personal debts must be taken into consideration.
– Sensitised Rates on your other debt will apply when calculating capacity.
– Low Doc and Lease Doc Commercial Loan Options are available depending on the situation
Follow this link for more information on a commercial loan
