:: Commercial Loans

• Cost 

The main difference between residential and commercial lending is usually the cost. Using a commercial or industrial property as security for your loan will be more expensive than using a residential property.

Application fees are also usually higher ranging on average between 0.5% & 2.0% of the loan amount.

 

Valuation fees and lenders solicitor costs are also usually higher and payable by the borrower.

These charges will vary from lender to lender. Your Shire First Mortgages loan consultant can discuss the differences with you at the time of your loan consultation

•  Amount Available

Many loans using commercial property as security have lower loan to value ratios than are generally available for residential security.

Loan to Valuation Ration is generally lower. A few lenders will offer 80% or higher but as a general rule most funders will only offer 75%.

•  Maximum loan terms

While some lenders do offer loans up to 25 years, most commercial loan terms are generally up to 15 years.

•  Low Doc availability

The range of lenders offering low doc products for commercial lending is not as large as those offering low doc products for residential lending. The loan to valuation ratio for commercial low doc loans is also usually lower at 65%.

If you want to use your commercial or industrial property as security, our consultants can assist you with a range of loans available from both bank and non bank lenders.

•  Buying commercial property using a standard residential loan

In some cases we can arrange finance for your commercial property using equity in your existing home or other residential investment. This will help keep costs down, provide you with a lower interest rate and allow you to enjoy a more flexible loan product. Almost all of the loan types listed under our residential loans are available for the purchase or refinance of a commercial or industrial property providing a residential property is used as security.