Commercial Property
Let us simplify the complex and time consuming world of commercial and development finance.
Aspire Mortgage & Finance can assist with obtaining finance to purchase commercial property such as retail space, office buildings, warehouses and factories. We can also assist with development finance for residential land subdivisions or apartment building construction.
Commercial property loans differ to standard residential lending and are often more complex and higher risk. Commercial loans are not regulated by the National Consumer Credit Protection (NCCP) Act, resulting in less protection but often greater flexibility for commercial borrowers.
Given the complexity and increased risk of commercial lending, it’s imperative that you consult specialist brokers like Aspire Mortgage & Finance, who have the knowledge, experience and connections to guide you through the process.
CALL US TODAY to discuss your next commercial property opportunity.
What do commercial lenders look for in a security property?
Commercial property values are largely driven by rental returns and capital growth potential.
When assessing the risk of lending against a commercial security, a lender will look at the strength of any existing lease in place (it’s return, length, tenants, time remaining, options to renew). They’ll then look at alternate use of the property and its versatility to be leased on the open market. If the purchaser is buying with the purpose of using the premises themselves, their business expertise, performance, cash flow and future projections may also be scrutinised.
What a lender looks at when assessing a commercial security property:-
- – Purpose
- – Rental return and strength of lease
- – Location and zoning
- – Alternate use / versatility
- – Size
- – Physical characteristics
- – Services
- – Amenities
- – Potential environmental impacts
What income verification is required?
Income verification requirements vary depending on the type of commercial loan you are seeking:-
Full Doc – 2 years Tax returns and financials.
Low Doc – Accountant’s letter, bank statements or BAS.
No Doc – No evidence required to be produced.
Lease Doc – Evidence that the lease will cover the interest repayments.
Cash Flow Forecasts – Financial forecasts showing that the loan will enable the business to earn additional income sufficient to cover the loan repayments.
