Refinancing Commercial Property Loans: Understanding the Options
Commercial loans serve various purposes, including acquiring commercial properties, funding developments, and supporting business ventures. These loans are typically secured by the property itself and can have terms ranging up to 15 years, with options for fixed or variable interest rates.
Types of Commercial Loans:
- Owner Occupied Property Loan:
- Designed for properties where the business owner operates their business.
- Investment Property Loan:
- Used for investing in commercial properties that are rented out to tenants.
- Commercial Development Loan:
- Intended for funding property development projects.
Reasons to Consider Refinancing:
Refinancing your commercial loan can bring several benefits, including:
- Cashflow Boost & Business Expansion: By securing a better interest rate, refinancing can provide immediate cash flow improvements for business growth.
- Upgrade to a Newer Product: Take advantage of newer loan products offering extended terms or better rates that may reduce monthly repayments.
- Adjusting to Rising Interest Rates: With recent rate increases, refinancing can secure a more competitive rate, potentially lowering long-term costs.
- Utilizing Equity for Business Needs: Extract equity from your property to reinvest in business development or other ventures.
Current Commercial Loan Products:
- Long-Term Loans: Extend your loan term up to 30 years, reducing monthly repayments.
- Interest-Only Loans: Initial repayments cover only interest, offering lower initial costs.
- Low Doc/No Doc Loans: Minimal paperwork requirements and quicker processing for eligible borrowers.
- Lease Doc Loans: Based on rental income strength rather than extensive income verification.
- Unlimited Cash Out Options: Access equity locked in your property for liquidity.
Why Choose a Mortgage Broker for Refinancing?
Engaging a mortgage broker offers advantages such as access to a wide range of lenders and tailored financial solutions. Brokers handle the entire process, ensuring competitive rates and managing paperwork efficiently. At Credit Cube Australia, our team advocates for clients, ensuring they secure the most competitive financing options tailored to their needs. Contact us today at 1300 782 944 or leave your details on Facebook for a consultation.