flagFounded: Founded in 1937, acquired by Westpac in 2008
businessOwned by: Westpac
monetization_onFunded by: Retail deposits and wholesale capital markets
securityLMI Provider: Westpac LMI (WLMI) and Arch Capital (WLMI – A)
account_balanceLender type: Subsidiary of a Major Bank
St George Commercial has seen the success of the broker market with residential loans and is now moving to replicate that success with commercial property loans.
They’ve come out with special pricing and aggressive lending policies to capture more of the business owner market and commercial property investor market.
How do they compare to other commercial lenders?
How do St George Commercial’s loans compare?
They’re great at
- Small business loans secured by real estate
- Financing a commercial property investment
- Financing the purchase / start-up of a franchise
- Financing the purchase / start-up of a medical practice
- Property development loans
- Bank bill loans with low interest rates for larger loan sizes
- They have a range of products including overdrafts and term loans
- Working with existing St George customers
But they’ve got some drawbacks…
- Their credit assessment is strict
- Their maximum loan term is 15 years
- They don’t do low doc commercial property loans
- They’re unlikely to accept a bad credit history
- They may require annual reviews on some loan facilities
- St George doesn’t have a big presence outside of NSW
- You get the most out of St George Commercial if you have a good contact
- If a small business banker is any good, they tend to get promoted or become a mortgage broker
Can you get home loan rates on a business loan?
Yes you can! But it isn’t always straightforward.
St George will sometimes allow a business loan to be processed via their residential loan department and for you to get home loan interest rates on your business loan.
What’s the catch?
- You must have residential property as security for your loan
- You must be able to afford the loan using your historical income
- Your loan should not exceed 80% LVR
- You cannot use profit projections or similar methods to prove your income
Not sure if you qualify? Call us on 1300 889 743 or complete our free assessment form online and we’ll work out the best option for your loan.
What commercial & business loan types do they have?
St George has a range of products for small businesses and commercial property investors.
St George’s Business Loan is their standard term loan for businesses and commercial property. It’s got a lower rate and very few features.
Their Business Maximiser is a combination of a cash-flow and term facility that also has the ability to access funds using an ATM card. It’s suitable for small loans as it comes at a higher interest rate.
Their Commercial Overdraft is useful if you need ready access to your funds to assist you with the ups and downs of your business cashflow. It’s also suitable for small loans as it has a higher interest rate.
Their Business Loan Package is their cheaper option if you have residential property that you can use as security and you meet residential lending policies which are stricter than business loan lending policies.
Can you negotiate your terms and conditions?
If you’ve got a larger commercial loan then the best way to negotiate isn’t to ask what’s available, it’s to tell the banks what you want!
We usually put together a funding proposal which the banks can then reply to confirming if they can assist or letting us know what their best offer is. The goal is to push several banks to compete with each other and give you a better deal.
It isn’t just about the interest rate. Sometimes it’s about waiving the requirement for annual reviews, lending a higher LVR or having a longer interest only period. It just depends on what’s important to you and what the banks are willing to bend on.
Tip for applying with St George Commercial
Use St George Bank’s Minimum Required Documents Checklist to prepare for your commercial loan application.
Note: This is the latest loan checklist as at October 2017. Please refer to St George Commercial for their most up-to-date document requirements.
St George Commercial client story: Sally & Michael, NSW
- To buy a freehold car wash as a commercial investment.
Having owned and run a mechanic shop/petrol station in Sydney’s north-east for the past 5 years, married couple Sally and Michael wanted to expand their business dealings by buying a car wash.
Michael previously managed a car wash himself so he had some experience but luckily the car wash they eventually found already had a lease agreement in place with a long term tenant.
Michael and his wife owned their own home and had considerable equity to put towards the purchase.
Because Michael had kept on top of his business financials, he and his wife were able to qualify for a full doc commercial loan with St George Commercial and, with their equity, they borrowed just over 62% of the property value, which is quite a low Loan to Value Ratio (LVR).
Although a car wash is considered to be a specialised commercial property, the fact that Michael was able to provide the bank with a copy of the lease agreement showing that the current owners had been operating for more than 5 years, it gave SGB the confidence to approve the loan.
Compare St George Commercial to other lenders
Not sure which lender is right for you? Our Home Loan Experts can help!
Talk to one of our mortgage brokers by calling us on 1300 889 743 or complete our free assessment form.