Commercial loan broker
As commercial property loans are more complex and costly, working with a knowledgeable commercial finance broker like Mint Equity will save you time and money.
With a background in commercial lending, Director and Finance Broker, Zac Peteh, provides investors, business owners and SMSF holders with commercial financing guidance making the process straightforward and simple. Mint Equity works closely with commercial property investors to ensure they have access to the largest range of commercial property lenders providing both full doc and low doc options. Commercial financing options are available for;
Purchasing a commercial property as individual borrowers
Purchasing a commercial property under a trust or a company
Purchasing a commercial property in your SMSF
Buying new or upgrading equipment for commercial purposes
Renovating or updating a commercial property
Fit out funding for a commercial property
Refinance an existing commercial property loan
Secure your commercial investment with flexible loan options for investors, business owners, and SMSFs
Investing in a commercial property in Australia presents a potentially profitable opportunity. Whether you are a business owner wanting to secure your own premises or an investor seeking portfolio growth, various aspects must be considered when purchasing commercial real estate. Notably, financing for commercial property differs significantly from residential property, with diverse loan options available for each. Understanding these differences and working with an experienced commercial finance broker is crucial for a successful investment.
Commercial property loans
This is the most straightforward type of commercial loan, which involves borrowing money to purchase a commercial property outright. These loans typically have a term of 10 to 30 years and require a down payment of at least 20%, however higher LVRs are available. Commercial loans are available for:
Self Managed Super Funds (SMSF)
Businesses
Medical and health professionals (up to 100% LVR and no LMI options are available)
Trusts
Individuals
Buying a commercial property in Australia can be a wise investment decision, but it's important to understand the differences between commercial loans and residential loans, as well as the key factors to consider when purchasing a commercial property. By doing your research and working with a knowledgeable commercial loan broker, you can make an informed decision and achieve success in the commercial property market.
“The team at Mint Equity have been absolute champions in assisting us to take our investment portfolio to the next level. Our first meeting with Zac was fantastic. Zac asked some questions to understand our needs, what we wanted to achieve. He explained the process ahead, and what to expect next. He was fully transparent and open about some ideas he was exploring, and he presented some potential options moving forward. From this initial meeting, it was clear to me that Zac knows his stuff. As an investor, one of the most important things is having the right team around you. Having interviewed half a dozen brokers prior, I was quietly confident that this could be a good match. It turned out to be spot on.”
What type of property is considered commercial?
When applying for a property loan, the lending criteria vary significantly between a residential property loan and a commercial property loan. In some cases, if you are purchasing a commercial property you will need a higher deposit than that for a residential property.
Given the variation in borrowing requirements for residential vs commercial, it’s important to understand what type of property is classified as ‘commercial’. Commercial properties include;
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From a valuation perspective, a valuer will classify a residential property as commercial if there is a portion of the property dedicated to commercial services. For example, a converted corner store that is part residential but has a retail commercial façade will be considered commercial and therefore be subject to higher commercial loan terms including higher interest rates and higher deposit requirements. Residential properties with business signage may also be considered commercial, so it’s important to check with a commercial finance broker before making an offer on the property. The zoning may also determine the type of property regardless of the exterior.
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These are commercial properties designed to house offices and other related businesses, usually under a strata structure.
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These are commercial properties designed to house stores, shopping centres, child care centres, and malls where foot traffic is the key driver of value.
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These are commercial properties designed for manufacturing, warehousing, and distribution activities.
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These are commercial properties that provide accommodation and other hospitality services, such as hotels, bed and breakfasts, motels, and resorts.
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These are commercial properties designed to house healthcare facilities, such as hospitals, clinics, and medical offices. They may have special zoning to allow the occupation of medical related businesses.
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These are commercial properties that combine two or more uses, such as residential and commercial spaces.
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These are commercial properties used for agricultural activities, such as farms, ranches, and vineyards.
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Commercial land refers to undeveloped or developed land that is intended for commercial use, such as shopping centres, office parks, and warehousing or industrial sites.
Access to commercial lenders
With access to over 40 lenders, the team at Mint Equity can provide you with guidance to secure the best commercial loan to suit your needs and timeline. There are many options, products and methods to reduce your upfront and ongoing costs, so talking to the experts early in the process will help eliminate any concerns you may have about commercial finance.
Commercial Loans vs. Residential Loans
Commercial loans are different from residential loans in several ways. First and foremost, commercial loans are generally riskier for lenders because there are less buyers wanting to purchase a commercial property, therefore a sale due to a default may take longer to complete or the value may not be retained. As a result, commercial loans often have higher interest rates and more stringent eligibility requirements.
Investment property mortgage for commercial properties also differ from residential loans in terms of the underwriting process. When applying for an investment property loan or an investment home loan for a residential property, lenders typically look at your credit score, debt-to-income ratio, and employment history. In contrast, commercial properties loan underwriters will also consider the property's potential income, as well as its location, zoning, and market demand.
Property valuations for a commercial property are also more expensive and often the borrower will need to pay a fee for the property valuation to be done. Whereas, residential property valuations under $2,500,000 are paid for by the lender.
Investment property mortgage broker
Commercial properties are the choice of seasoned property investors and as such, an experienced and knowledgeable investment property finance broker is crucial to minimising entry and ongoing costs associated with the commercial financing. The team at Mint Equity draw on decades of experience in lending and credit to provide a full service offering for the astute commercial investor.
Regardless of where you want to purchase your investment property, Sydney, Central Coast, Newcastle, Brisbane or anywhere in Australia, becoming a property investor is less restrictive than many think, particularly when working with a specialist refinance mortgage broker like Mint Equity.
A diverse property portfolio can benefit from commercial properties
If your aim is to expand your property portfolio, a commercial loan can prove to be an effective means of moving forward. Opting for a commercial property loan enables you to diversify your portfolio.
Additionally, commercial properties usually have longer rental periods, which means they offer greater rental certainty and fewer ongoing expenses. We offer a variety of flexible commercial lending options to assist forward-thinking individuals in achieving their investment loan objectives.
Commercial finance for health and medical professionals
Mint Equity works closely with specialised medical lenders providing impressive lending criteria and conditions for those individuals and businesses in the healthcare and medical sector.
We can provided lending for;
acquisition or expansion of owner occupied commercial property
acquisition or expansion of owner occupied practice purchase “Patient Base”
goodwill redraw for reinvestment purposes
refinance existing debt
working capital
start-up clinic
motor vehicle purchase
Loan to value ratio limits for medical practices;
up to 100% of commercial property purchase value
up to 100% of practice purchase or buy in “Patient Base”
up to 100% for fit out and medical equipment
up to 100% start up costs and working capital facility
Loan to value ratio limits for medical professionals home loan or investment lending
90% no LMI for properties up to $5million
95% no LMI for principal residence, Plus 95% Investment Doctors, Specialists & Dentists.
What to consider when buying a commercial property
Buying a commercial property requires careful planning, research, and consideration. Here are some key factors to keep in mind when considering:
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The location of the property is crucial, as it can affect the attractiveness of the building to potential tenants and the rental rates that can be charged. Look for buildings in desirable locations with good access to transportation, parking, amenities, and a strong local economy.
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Consider the size and layout of the building, as well as the available space. Make sure the property meets your needs and the needs of your potential tenants.
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Conduct a thorough inspection to identify any necessary repairs or upgrades. Consider the age of the building, the condition of the roof, plumbing, electrical, NBN, and other important systems.
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Speak with an experienced and knowledgeable commercial mortgage broker like Mint Equity to understand the commercial loan approval process. Consider your budget and whether the income will cover the commercial mortgage repayments.
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Check zoning laws and local regulations to ensure that the property is zoned for the intended use. Also, make sure the building meets all applicable building codes and safety regulations.
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Conduct a thorough market analysis to determine the current and potential demand for office space in the area. Look at factors such as rental rates, resale value, vacancy rates, and competition.
Frequently Asked Questions
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Generally speaking, interest rates for commercial purposes are higher than standard residential home loans. All lenders advertised interest rates are negotiable, that’s why mortgage brokers are pivotal in getting the lowest interest rate for property owners. Mortgage brokers request a discount on the interest rate and the amount of discount often depends on the LVR (Loan to Value Ratio).
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We take the headache out of commercial loans by assessing the best available products that fit with your strategy.
It’s our experience that enable us to give our clients the best outcome and chance of approval. In a complex lending market, it’s this experience that sets us apart from other mortgage brokers.
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Mint Equity covers the full spectrum of property and business finance.
Commercial loans
Investment property loans
Construction and development loans
Personal loans
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