Loan terms on commercial loans can vary dramatically.
Commercial loan terms are extremely important, as you don’t want all the set up costs, such as valuation and legal fees and then be asked to pay for all this again a few years later.
One year loan terms
These are typically for fast commercial loans.
These commercial loans are normally in between loans, while a customer tidies up their paper work. Once the paperwork is in order it is then refinanced into a bank commercial loan at lower commercial loan rates.
The advantage of these loans are they are very fast and a letter of offer is normally obtained within 24 hours.
The major four banks do not usually do term loans for one year.
Commercial loans up to five year terms
These loans are normally matched to a lease term. eg if there is a tenant in the commercial property and they have three years to run on the lease, then the lender will then do a loan that matches the remaining term left on the lease.
Commercial loans up to 15 year terms
For owner occupied commercial properties, the major banks may consider lending on a 15 year loan term. The applicant normally has clean credit and provides full documentation. A maximum of five years interest only is usual on this type of commercial loan.
Commercial loans up to 25 year terms
This commercial loan is not normally available through the major four banks. Having said that there is a major commercial lender that will do a term loan of up to 25 years, with a five year interest only period
30 year loan terms
Yes, it is possible, however to obtain this loan, you will need to provide residential security for this product. This is probably one of the best commercial loans in the market.
A commercial loan at home loan rates and using residential security.
In conclusion, tell us what loan term you need and we will come back to you within 24 hours as to what we can do.