Home Financial Knowledge Differences in Commercial Property Finance

Differences in Commercial Property Finance

0
Differences in Commercial Property Finance

Whether you are looking to expand operations, refinance or purchase property, you will require to obtain a certain ratio finance in order to successfully achieve your desired objective.

Prior to shopping around for such loans it is essential to start with understanding of the objective of your loan. This is due to the purpose of your loan influencing how lenders determine your loan application.

These include:

  • Buying commercial property as an investment. When considering to invest in commercial property and subsequently lease it out to a third party, lenders categorize you as a low-risk borrower and are more likely to offer an easier application process and lower interest rates.
  • Buying commercial property as an owner-occupier. When you desire to purchase a commercial property which will subsequently become premises for your own business, lenders will categorize you as a higher risk. Therefore, you will be required to satisfy more stringent lending criteria and most likely obtain a higher interest rate.

With interest rates at all-time lows, this also provides people seeking access to finance for commercial property projects very low interest rates compared to previous years. When combine this with rising property prices, it has never been a better time to apply for commercial property finance.

Ask Sillicon Capital how we can help.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Click To Call Us
error: Content is protected !!