Commercial Mortgage
If you are buying new premises like an office, shops or warehouse or if you’re purchasing a new business you may find that a commercial mortgage loan is the best finance solution for your situation. Or – if you are a small property developer who is keen to subdivide and redevelop residential blocks of land, you may find a commercial loan is the best finance solution to fund your project.
Commercial Mortgage Loans: Who Qualifies?
Chances are you’ll know that with a residential mortgage a lender will assess your personal financial situation and want proof of income before they grant you a home loan. Either that or they’ll agree to a LoDoc loan where you sign an income declaration stating what your likely income is for the year.
The approval process for Commercial Mortgage Loans is different. Unlike with residential mortgages that require certain proof of income levels to be met, most commercial lenders will evaluate an applicant’s ability to repay the loan based on the strength of the business venture or proposal not on their income. That’s because these commercial mortgage providers understand that the purpose of the loan is to fund a new business venture which is designed to grow a business and therefore generate income. With that in mind, the loan application is assessed as a business proposal which is totally separate to your individual personal finance situation.
Because commercial mortgage finance is a very specialised field, the best person to speak with to arrange a loan is a commercial mortgage broker who specialises in commercial finance solutions and mortgage loans. After all, just because your existing Bank offers you a great residential mortgage product it doesn’t mean they also are experts in commercial mortgages. In fact, many Banks don’t fully understand the needs of business owners and don’t have a good understanding of the needs of business owners and therefore don’t have the expertise to recommend the right solution for a business owner’s needs. Moreover, many residential banks are very limited with the types of commercial mortgage products they offer. That’s why it’s best to speak with a commercial mortgage broker who knows how to speak “business” and more importantly, knows what the different lenders offer and which commercial finance solution is right for your business needs. At Wealth Concerns we have specialist commercial mortgage brokers who understand the needs of business so just contact us and we can match the right commercial finance solutions for your business needs.
Contact Us
If you would like to discuss your specific circumstances call us on 1300 700 496 or alternatively text your name and number to 0411 320 962 and we will call you.