Any way to borrow more than 80% on a commercial loan?

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Otto Dargan
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Re: Any way to borrow more than 80% on a commercial loan?

Post by Otto Dargan »

Hello adele.

Welcome to the forums.

There are three ways you can borrow up to 100% on a commercial loan:
  • Using equity in existing property - You can borrow up to 80% of the value of a residential property or 70% of the value of a commercial property in equity to finance your purchase. Please note that specialised commercial properties such as farmland will be limited to 50% to 60% of the property value in equity.
  • Taking the help of a guarantor - By taking the help of your parents, a friend or a business partner as a guarantor for your mortgage, you can borrow up to 100% in a commercial property loan.
  • Balance sheet lend - Some lenders can do a balance sheet lend, which is basically lending against the value in your business. Here, lenders take assets such as trail books, equipment and vehicles as security against the loan but generally won't lend against their full value.
If there's anything more you'd like to know, please feel free to ask.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Any way to borrow more than 80% on a commercial loan?

Post by Otto Dargan »

Hi adele,

Yes, dentists do qualify for doctor mortgage discounts. Since you're buying a commercial property to establish your dental practice and use it as your business premises, you can instead qualify for a dental practice loan.

With this loan, you can borrow up to 100% of the purchase costs without a deposit! However, note that the maximum loan term for freehold property will be 25 years and for leasehold will be 15 years or per the lease agreement.

Our mortgage brokers specialise in commercial property loans and mortgages for dentists and other doctors. You can discuss your situation and loan needs with one of our credit specialists directly by calling us on 1300 889 743 or you can enquire online.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Any way to borrow more than 80% on a commercial loan?

Post by Otto Dargan »

Hi Roman Bust,

Note that when valuing a rent roll, lenders will look at various factors such as management risk, and tenants and properties under management.

Here are some features of a rent roll finance lend:
  • You can borrow up to 60% of the purchase price or bank valuation, whichever is lower.
  • The maximum loan term will be 10 years.
  • You can pay interest only for 3 years.
  • Loan amounts over $5 million will be assessed case by case.
  • You'll need to provide a business plan and have at least 3 years experience in managing a rent roll or real estate agency.
  • Monthly or quarterly reviews are also typically required.
Please give us a call or go through our website for more details.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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