Becoming a Business Mortgage Broker, Commercial Property Mortgage Broker & Loan Broker
Commercial property is not like monopoly where you must buy 4 houses before buying your hotel, but lenders do like to see an investment track record and have tighter conditions around commercial property. While lenders may often offer low-deposit loans for residential investment property, commercial properties often require higher deposits, typically around 65% of valuation.
We are a commercial mortgage broker at Simpler. In addition we offer shorter loan terms for commercial property, and this can have a big impact on affordability. The loan term will be largely derived by the lease profile of the property, so having some committed tenants can help dramatically.
Understanding the in’s and outs of each property type and the changing demands of it’s tenants will help you determine what property type is for you. In a post-covid world business’s demands for commercial property have changed rapidly, and understanding this changing demand will help you make astute property investment decisions.
Actually Business Mortgage Broker and Commercial Mortgage Broker acts as an intermediary who brokers mortgage loans on behalf of businesses or individuals who needs a commercial loan. The different types of commercial property include Retail, Hospitality, Accommodation, Office space, Warehouse or Industrial storage yard. Each investor will need to form their own view of each sector and the local demand for that type of commercial property.
It’s also important to consider whether the building will have a single tenant or multiple tenants, as this will change your lease profile and can add some welcome diversification.
Commercial buildings often have warrants of fitness and will carry an engineering rating which will give an indication as to the buildings structural integrity relative to the National Building Standard, or an NBS rating. Typically lenders will not consider any older buildings that have an NBS rating of less than 67% unless you have a detailed remediation plan.
Commercial buildings are not covered under the Residential Tenancies Act nor are they covered by the Reserve Banks LVR policy. With frequent changes in residential lending policy and the residential tenancies act this can make commercial property an attractive alternative investment.
All successful property investors maintain a winning team of professional advisers around them and in the case of commercial property this is even more important. You’ll want to engage the services of a great Mortgage Adviser, Accountant, Commercial Mortgage Broker, Lawyer, Commercial Real Estate Agent and Property Manager.
We don't charge for our services unless it’s something complex, and if that's the case we’ll tell you upfront.
We deal with all major banks, and we know who's competing for new customers at any given time and who will give the best deal. We do the negotiation for you.
We advise on things such as loan structure, budgeting and our view on lowest interest rates. Bank employees technically aren't allowed to give their view on these and if they do it’s in favour of their bank.
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