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Commercial real estate loan is a type of loan that is granted on a commercial property, as opposed to a residential home. Commercial property refers to an income-producing property that is used solely for business purposes. Examples of this type of property includes retail malls, shopping centers, office buildings and hotels. Financing such a property either for its acquisition, development or construction purpose is typically done through commercial real estate loans.
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Commercial real estate loan is a type of loan that is granted on a commercial property, as opposed to a residential home. Commercial property refers to an income-producing property that is used solely for business purposes. Examples of this type of property includes retail malls, shopping centers, office buildings and hotels. Financing such a property either for its acquisition, development or construction purpose is typically done through commercial real estate loans. What are Commercial Real Estate Loans?
There are several banks, individual lenders and other financing institutions in Australia that offer commercial property loans to the borrowers, after checking their application and eligibility criteria. Who Provides the Commercial Real Estate Loan?
The commercial real estate borrowers are required to prove their income to the lenders and are given a variety of options to do this. These options include: • Full documentation: The borrower should supply a full list of his financials as part of a standard loan application. • Lease documentation: For this option, the borrower must show that the income generated from the lease equates to more than what he will need to repay in interest. • Low documentation: In this option, the borrower is required to provide some of his income. This may be in the form of bank statements or correspondence from the accountant. • No documentation: In this option, the borrower is not required to provide any proof of their ability to repay the loan. • Forecasts: This option requires the borrower to compile a profit and loss predication indicating how receiving this loan will give his business the ability to generate enough extra income to repay the debt. Qualifying Criteria for Commercial Real Estate Loan
Adopting a commercial real estate loans offers the following benefits to the businesses: • Lower interest rates: Commercial real estate loans provide lower interest rates in comparison to other unsecured borrowings. Choosing to have fixed monthly repayments means that the borrower can accurately use it in his business planning and structure his business's finance with a bit more certainty. • Financial planning: Commercial real estate loans are a long-term finance agreement which enables the borrowers to spread out large expenses for up to 20 years, sparing the need to remove large quantities of cash from the savings. • Tax benefits: Commercial real estate loans offer the benefit of saving money in the form of tax benefits. The government provides a number of tax exemptions when a person already has a property loan. The borrower can use this and save his taxes while owning a commercial real estate. Benefits of Commercial Real Estate Loans
Your Finance Adviser is a leading and most trusted finance advising company in Australia. We specialise in providing all types of home loan advice to people to fulfill their dreams of owning a home in Australia. We have a team of the best mortgage broker in Sydney that assists and guides the customers thoroughly about commercial real estate loans and helps them in understanding the loan's features and eligibility criteria. Expert's advice on Commercial Real Estate Loans by Your Finance Adviser
Your Finance Adviser – Home Loan Broker Address: Suite 13, Level 1, 50-52 Lyons Road, Drummoyne, NSW 2047 Phone no: 02 8322 6895 | 02 8322 6896 Fax: 02 9819 6387 Email: info@yourfinanceadviser.com.au Website: https://www.yourfinanceadviser.com.au/ Contact us
