Commercial Loans at Home Loan Rates
It is so simple!
If the security property is residential, then the full doc commercial loan can be done at home loan rates, irrespective of the use.
Often we are asked why do banks charge commercial rates when the security property is residential?
The answer is because they can!
It has become so commonplace among the major banks that as soon as a loan is deemed as commercial, or for business purposes, then they charge commercial interest rates irrespective of the security.
It doesn’t have to be that way.
Here are some examples:-
Commercial purchase, home as security
Investor was purchasing a commercial property and using their own unencumbered home as security. No security was being taken over the commercial property A major bank wanted to write this as a commercial loan. We helped customer get this done at home loan rates, including a 30 year term.
Resort purchase, written as Residential Investment Loan
Investor was purchasing a unit in a resort. Customer’s own bank which was major bank wanted to write this as a commercial loan. We helped customer get this done at home loan rates, including a 30 year term.
Two commercial shops downstairs, apartment upstairs, written at home loan rates
Investor was purchasing a commercial property, which consisted of two retails shops downstairs and a residential apartment upstairs. Property was zoned mixed use.Major bank wanted to write this as a commercial loan. We helped customer get this done at home loan rates, LVR was 70% including a 30 year term.
Advantages of using a home loan product
Interest Rates Home loan rates are generally cheaper.
30 year loan term The advantage is not only the rate, it is also the term. Many commercial loans are written over a short term if they are leased out, or maybe 15 years if they are owner occupied. With home loans this term may go out to 30 years, which gives much more comfort to the borrower.
In conclusion, if you have a normal standard residential security please call us.