Can any broker explain to me what the minimum deposit i can put down on a commercial property. How much equity(%) might i need to achieve this from my on property/s.
Dom[biggrin]Most commercial lenders require at least a 30% deposit. Smaller is achieveable if you are willing to pay.
If you have other property with equity this can be used rather than a deposit.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 9853 year fixed rate – 6.69%
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Simon,
In the case of using your equity in your property how would morgage insurance work if you needed to include it at what %. And could you please tell me the curent fixed interest> (Lowest)
And i was told that the term of the commercial loan may only be for ten yeare, therefore higher repayments on property.
Dom[biggrin]
The mortgage insurance would be applied to a residential property if the loan had to go above 80% in order to realise sufficient deposit for the commercial property.
Current fixed rates on commercial or residential? and over how many years?
Check it out yourself on http://www.cannex.com.au
Some lenders have 10 year P&I commercial loans – see NAB for one. Others can be IO.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 9853 year fixed rate – 6.69%
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Simon,
Thankyou for the link.
It was for commercial and a 5 year fixed period i am interested in.How do banks borrow if the commercial property is GST exclusive?. Do they lend the 10 % for a period of time until it is paid back at an interest rate?
Thanks
Dom[biggrin]Dom, IMB may lend up to 75%. Its 5 year commercial rate is 8.05%. They have an application fee of 0.50% of the loan amount. You have to pay for valuation and legal fees (which is standard). See http://www.imb.com.au
Sapphire’s 5 year fixed rate is 7.70% but they only lend up to 65%. See http://www.sapphiremortgageservices.com.au/rates.asp
With regards to GST – some lenders will provide you with a 3 month overdraft to finance the GST.
Cheers
Stu
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