Commercial Loans

Commercial properties are considered by most brokers to be higher-risk investments than residential properties, which means deposits for commercial properties are typically larger.

For an average commercial property in Australia worth over $1 million, you’ll need a deposit of anywhere from 25% to 35% of the property’s total value.  This varies depending on the risk level associated with the property in question, your financing history, the lender, the market, and a range of other factors.    

The value of commercial properties as investments hinges on their appeal to tenants.  With the right tenants, a commercial property can generate significantly higher returns; however, this increased return potential is offset by the greater complexity and risk of commercial property financing, which can deter many borrowers.

To minimise the risk of a commercial property loan, you need a specialist commercial mortgage broker who can navigate negotiations with lenders and balance unfavourable contracts.  Critically, you need to make sure the property’s earning potential is stable – a good broker will liaise with property lawyers and financial experts to ensure contracts and tenancy agreements don’t put the property value at risk.