Commercial loans can involve specialist knowledge and your broker is the best person with whom to be able to discuss your options. As an impartial source of information, you know that your project will get off on the right foot, with the right financial backing.
There are some situations in which commercial loans will be required for a land investment and these types of loans can sometimes come with higher interest rates.
If you intend to subdivide a standard house block you can do that under a residential-type product. However, if you intend to split the block into multiple blocks that’s when you’d apply for a commercial loan. The lender would then ideally like to see how you intend to make a profit from your project.
If you intend to lend and hold a property for future capital gain, this may also require a commercial loan and the loan may only be available for up to 60% of the value of the land.
Commercial finance also applies when the land being purchased has a non-residential zoning. |
