Understanding the Meaning and Scope of Commercial Property Loans in Australia
Planning to buy a property to start or expand your business in Australia? Go through this given blog and explore what type of funding and loan options are available for the Australians to purchase a commercial property for their business.
What are commercial property loans?
As most of us already know, a commercial property is the one that is purchased by business owners with an aim of conducting their business operations. Likewise, there’s a commercial property loans that is designed specifically for the business owners and allow them to establish income-producing properties for business use. These loans provide funds that can be used for making investments only in business premises and space and are mostly secured by a lien on the commercial property.
The commercial loan can be taken for a variety of properties. Some of the properties considered eligible for commercial property loan are:
- office space
- retail stores
- factories
- warehouses
- shopping centers
- industrial sites
- residential unit blocks
- specialist properties (medical centers, restaurants or apartment complexes)
Purposes fulfilled by commercial property loans
Apart from just buying a new home to the business, a commercial property loan can be used to serve a variety of other purposes as well. These purposes include:
- Developing existing property
- Developing new property
- Extending current premises
- Residential developments and projects
- Commercial developments and projects
- Buying land
Features of Commercial property loan
- Loan size: There is no maximum size of commercial property loan but the minimum loan size is $300,000.
- Term period: The time period for a commercial property loan ranges from 1 year to 30 years. Out of this, 15 years is the most common loan term.
- Interest rate: For most of the standard commercial properties in Australia, the variable interest rates lie between 3.1% to 6.5%. however, larger commercial loans can be done cheaper than this.
- Amount borrowed: Since every commercial property is different, financing for the commercial property loan is always done on a case-by-case basis.
Commercial property loan providers in Australia
There are several types of commercial banks, private lending institutions, mutual companies, and other financial groups that provide commercial property loans in Australia. Although all of these lenders usually have standards and policies that vary widely, there are however some standard lending criteria that is followed by all commercial loan providers. These are:
- Submission of some basic personal identification documents such identity proof, address and income proof statements.
- additional collateral security, and/or
- a guarantor
If you’re planning to apply for a commercial property loan, we recommend that you should take assistance from a professional lending specialist as it will make the process easy for you.
Your Finance Adviser is a leading group of best home loan brokers of Hornsby, Australia. It is a company that specializes in providing all types of loan advices to people in Australia and has an experience of over 20 years in helping people fulfil their dream of owning a home in Australia. It works with a team of dedicated and licensed home loan broker who are always ready to guide and assist people in achieving financial success.
Understanding Home Loan Brokers and Their Importance
Nowadays, home loans come within an endless array of types and features that are designed to help the borrowers in managing their loan and paying it off faster than the standard contract term. However, majority of the Australians find it difficult to understand the types and nature of these home loans as they have very little understanding of how the home loans features work and which one of it would be helpful for them. And to help such people, home loan brokers and experts work as the best option.
To provide the readers in gaining a better understanding about the home loan brokers, here in this blog, we’ve discussed the nature of job and benefits of appointing home loan experts in Sydney.
Who is a home loan broker?
A home loan broker is a type of financial professional who specializes in helping the clients find a home loan specific to their needs. The job of these home loan brokers includes gathering information about the needs of their clients and then suggesting the lenders about the products that match those needs. After helping the clients in selecting a home loan, the home loan brokers also help the buyer with the application process.
Benefits of home loan brokers
The home loan brokers play a very important role for all homebuyers as they provide very useful advice and guidance in selecting the right type of home loan for their buyers. Given below is a list of the benefits delivered by the home loan brokers.
- A home loan broker provides explanation about the financial aspects of buying a home for the people who aren’t confident in navigating the process of home loan for themselves.
- The home loan experts suggest a range of products to the homebuyers depending upon their situation, and enables them to compare several options, rather than simply going to a provider or a bank.
- For the people who don’t have the time to research about the home loan options that are available for them, a home loan broker can do some of that work on their behalf.
- Usually, some home loan brokers have access to exclusive deals that aren’t advertised by the banks. The banks push these deals onto the brokers, and the brokers are in charge of selling the products. By appointing a home loan broker, the buyers can gain advantage of these extra perks which they would have otherwise missed out by if they went directly to the bank.
Facing problems in applying to property loans in Australia? Don't worry, Your Finance Adviser is there to solve all your home loan and finance related problems. It is a leading finance advising company in Australia that specializes in providing guidance and assistance about all types of home loan and commercial property mortgage scheme. It works with a team of best home loan experts of Sydney who provide home loan advice based upon lending guidelines mandated by the major banks & lenders of Australia.
To speak with its experts, contact 02 8322 6895.
Commercial Property Loans | Real Estate Property Mortgage Australia | Your Finance Adviser
Five Questions to Ask Before Putting in an Offer on a Home
We all want to get a bargain when we buy a property, however, the reality is that you need to meet the vendor halfway in most cases. Knowing how much you should offer and exactly where you need to meet the vendor when it comes to price comes down to asking a few key questions
.
What’s The Basis For The Asking Price?
Just because a house is listed at a certain price by the sales agent doesn’t mean the price is a realistic one.
The key to understanding whether a price is fair and reasonable is to do your market research beforehand.
These days it’s easy to access sales data on the real estate portals and you can quickly and easily see what other comparable properties have been selling for in the same area.
Try and find a house of similar age, land component and condition that has sold in the last three to six months, and present those to the agent when making an offer.
Are There Multiple Offers?
If you’re the only one putting an offer in on a property, then there is a fair chance you’ll be able to negotiate a lower price.
If there are multiple parties interested then the odds of you getting a bargain are slim.
At the end of the day, buying and selling is about supply and demand and if you need to compete for a property, then you likely won’t be able to put in a low ball offer successfully.
How Long Has The Property Been Listed?
If a property has been sitting on realeaste.com.au for six months with no interest then there is a fair chance the property is overpriced.
At that point, the vendor might be willing to accept something less then they had previously hoped for and meet the market’s expectation.
If they aren’t then it’s likely that they are simply asking too much and are not prepared to budge.
What’s The Vendor’s Motivation?
How eager is the vendor to get a deal done? If they need to sell the property quickly for family or financial reasons, then you might be able to put in a lower offer with good terms.
If the vendor has a set price in mind and no reason to sell, then there is not much chance of getting a low offer through.
Has The Asking Price Changed?
If the asking price is slowly dropping each week or month, then it’s fair to say that the property was initially priced too high, either by the agent or the vendor.
This also shows the vendor does want to sell and that they are prepared to be flexible on what they accept.
In this case, a low offer might be something that the vendor is prepared to consider.
Get Assistance of YFA’s Home Loan Expert in Australia
Negotiating property rates with the vendors requires a few careful considerations. It is always helpful if you enquire crucial aspects of the property with the vendor, especially when you are buying your home. A trusted lending specialist can make a lot of difference in your endeavour. Our commercial Mortgage brokers in Sydney, Australia, can assist you at every effort to make the process of getting credit and loans easier and more affordable. Here are a few advantages of opting for solutions from YFA:
- We will find a better rate for your loan so that you can save on interest with a lower fixed or variable interest rate.
- Our process is simple and it is easy to apply online, over the phone and in the branch.
- We can help you settle things in less than a week so that you save time and effort.
- We have access to 30 lenders and 1,000 different loan products through our well-informed lending specialists
- We provide assistance at a time and place most convenient for you and your family
- Tailor-made services that are obligation-free
- We keep our clients up to date on loan products and their risk appetites
Source: Five Questions to Ask Before Putting in an Offer on a Home - yourfinanceadviser
Understanding Owner Occupied Home Loans
An owner-occupied home loan is a type of home loan that is designed for the people who plan to live in the home for which the loan is required for. It is provided by a variety of banks, lenders and credit providers. This type of loan can be used to purchase an existing home, build a new property, or renovate an established one.
The banks and other financial companies approve the applications for owner occupied home loan easily and offer favourable rates on owner occupied home loans because they assume that the owners will take better care of the house than the tenants. And since the borrower will be occupying as the owner, it gives lenders greater confidence as the borrower’s business figures will tell them all they need to know about his capacity to meet future repayments.
In Australia, there is a list of homes that lenders and credit providers consider as acceptable owner-occupied real estate security. These homes are:
- Free-Standing Residential Detached Homes
- Semi-Detached Homes
- Terraced Housing
- Townhouses
- Duplex Homes, and
- Flats (also called "Home Units")
The process of applying to owner occupied home loans in Australia can be quite challenging. This is due to the several types of formalities and applications that are required to be completed by the borrowers. That is why, it is both beneficial and smart for a borrower to seek assistance from a home loan broker. At present, there are several home loans brokers available in Sydney and but as a borrower, you should only select a trusted, experienced and qualified home loan broker.
Experts Advice on owner occupied home loans by Your Finance Advisor
Your Finance Advisor is a reputed finance advising company and Home loan experts of Sydney, Australia. We specialise in providing home loan advice to people to fulfil their dreams of owning a home in Australia. We can guide you in getting the perfect home loan that fits into your budget. Our team will assist and guide you thoroughly about owner occupied home loan rates in Australia and help you in understanding the loan's features and eligibility criteria.
Ready to move to your new house? Contact us at info@yourfinanceadviser.com.au.
