Commercial lending

Standard consumer lending products are generally not available when the purpose of the loan relates to commercial property or ventures. Some of the situations where individuals, companies or trusts may look at a commercial lending option include:

• Buying commercial property – If you’d like to borrow funds from the Bank to purchase an existing commercial property and use the property as the security for the loan.
• Refinancing an existing commercial loan – If your current commercial lending facility isn’t operating exactly as you would like, speak to a broker or credit professional to discuss other options, which are more suited to your needs.
• Using equity for commercial investment purposes – Many residential lending policies are quite restrictive when using the equity you have in a residential property for commercial purposes. Speak to your broker or credit professional about a commercial lending option which provides you with the opportunity to use your equity exactly as you need to.
• Diversifying your portfolio – Purchasing commercial property can be a great way to diversify your investment portfolio. There are a range of investment properties to suit most budgets and net income returns generally outperform returns from residential properties.

Managing a commercial investment property is similar to managing a residential investment property, however, there are considerations that you need to make before committing to a purchase:

• Longer term leases – Commercial leases are generally for a period of three to ten years, compared to residential leases which are typically for around one year.
• Higher costs – Deposits of around 30% are generally required by lenders for commercial property investment. Building repair and maintenance costs can also be higher than a residential property.
• Attracting and keeping tenants – Tenants can be affected by a range of factors, such as the economic environment, so you need to ensure you’re well informed about changes that could impact on your tenants and your commercial property. When you find a good tenant, retention is crucial, so ensure you engage in regular informal communication with your tenants and consider their needs.

SmartSuite Commercial Full Doc

The SmartSuite Commercial Full Doc option requires you to provide full financials and/or proof of income in return for a lower interest rate.

Download the SmartSuite Commercial fact sheet

SmartSuite Commercial Lo Doc

The SmartSuite Commercial Lo Doc option allows you greater flexibility by only requiring you to complete a statement of income and employment, certifying that the facility is within your ability and capacity to service while still allowing you to borrow up to 75% LVR.

Download the SmartSuite Commercial fact sheet

SmartSuite Commercial Simple Doc

The SmartSuite Commercial Simple Doc option only requires you to complete a declaration that the facility is within your ability and capacity to service, as well as verification of the commercial property’s rental income. 

Download the SmartSuite Commercial fact sheet