Can anyone clarify what EXACTLY determines if a job is a COMMERCIAL construction?
I have heard conflicting advice about what lenders call "commercial". One situation is that a small unit site MAY be considered for a commercial loan by some lenders, but not by others!
Is there a CLEAR definition of how a job is classified as commercial??
Thanks.
Normally the zoning.
In saying this whilst you wont get mortgage insurance on a Commercial deal you may stil get more than 80% LVR depending on the quality of the security.
Interest rates also can be just as keen.
Richard Taylor | Australia's leading private lender
Okay……so what if its a business zone, but it will be used for residential (units) development?
Then, if that's how banks view it, how come for a res 1 zone unit site I have been told I may get a commercial loan??
Then, how does insurers ascertain if one is working on a residential or commercial site? As I gather this will affect insurance alot?? And there may be other "interested parties" for a development that need a clear definition of is it a commercial or residential project!
Business zone will equal a commercial loan.
Richard Taylor | Australia's leading private lender
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