A competent commercial property mortgage broker should be accredited with all the major banks in Australia. Some residential brokers with no commercial banking experience will likely have issues or problems in being accredited to put up commercial business loan transactions (including commercial property loans) with some of the big four major banks in Australia. Quite often, the minimum requirement in obtaining commercial accreditation is that the broker must have had two or more years of experience working as a banker in the commercial/ business finance sector.
With the increasing no. of competitors entering the market, whether commercial property mortgage brokers are referring to the banks or financial lenders such as Pepper, Thinktank or Latrobe, the banks and the like have streamlined their lending criteria. This means that it is easier to borrow (whether it applies for investment (rented out) or owner-occupied (for use in your own business). A good commercial property mortgage should have a good gauge across all the policies different financiers offer.
There’s a special No-Doc refinance offer if your loan is under $1M & LVR up to 80%. Income documents are optional if you can show 12 months of good loan repayment conduct AND the new repayment is lower than your current one. This could be a good move if your interest rate is high and it is with a non-bank. The bank is simply looking at your repayment conduct.
Trading Business Owners: BAS statements are all required to obtain 80% LVR up to $ 2m in business lending for a commercial property. If all your financials are up to date and your business is very profitable, you may even be eligible to borrow up to 85% LVR against an owner-occupied commercial property. Otherwise, if you have prepared a financial statement for the business but the tax return is not ready, you may still be eligible to borrow up to 80% LVR up to $ 1.5m.
Otherwise, the low doc may be the option to go (either providing BAS statements or an accountant letter) if you do not qualify for the lending criteria with the bank. Plenty of financial institutions would offer this, and often, the rate may be 2-2.5% more expensive.
This type of loan is mostly suited to investors where the income of the loan is solely supported by the rental it receives from the tenant. Some banks do not require to complete a full assessment of the individual or the group servicing but only focus on whether rental income can support the debt. Some banks have reduced their buffer rate to 0.5%, meaning more investors may qualify with other cash-out or refinance.
Overseas Non-resident borrowers: Whilst banks may not be able to lend to non-residents of Australia, plenty of financial institutions can. Lending criteria include providing the last six months of salary deposit and a letter from an accountant (CPA) in that country to confirm income.
An established and competent commercial property mortgage broker should have multiple financiers and banks on their panel, which means that it can cater for the needs of different customers with different circumstances.
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