Commercial versus residential investment
Areas of finance:
- Refinance of existing facilities to allow equity release and better rates
- First and Second mortgage finance

- Investment properties
- Owner occupied properties
- Hotels & motels
- Office blocks
- Warehouses and factories
- Shopping centres
- Retirement villages
- Rest homes
- Education facilities (child care)
- Refurbishments
Specifications*:
- Minimum Loan: $100,000
- Maximum Loan: $20,000,000
- Term: a few months to long term
- LVR - up to 85%, (well leased on a long term basis), 100% financing of purchase price in certain circumstances
- LVR 85%: Commercial Tenanted over 80% Occupancy
- LVR 67%: Commercial Tenanted under 80% Occupancy
- Minimum cash equity is normally 20%
- Fixed and/or floating interest rates
- Interest only or principle & interest repayments
Costs*: (these are industry standards)
- Interest Rates:
- 1st mortgage: current floating rates to 12%
- 2nd mortgage: range from 12% to 18.5%
- Lender Fees: range from 0.3% to 4%
- Legal Costs: vary upon financier and your solicitor
The exact interest rate depends on the market conditions, strength of the securities and the credit risk associated with the application and the applicant.
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