Lease Doc Commercial Property Loans Overview

What do Lease Doc commercial lenders look for?   With Lease Only Commercial property loans, as well as sound commercial security, lenders focus on the lease and its terms.

It's all about the lease.  The quality of the tenant, the lease term, any options, who pays outgoings, and

Property Location  Generally standard commercial security in major metropolitan areas are preferred. One of the key tests for the lender with Lease Only loans is can the property be re let quickly if the property becomes vacant

Loan size   Minimum loan size is $300,000.  Most Lease Only commercial finance is done up to $1m.  No maximum loan size.

Term   From 1 year to 30 years. For Lease Only commercial property loans the lenders are looking at the income streams. There is normally a trade off between rate and term. Shorter term Lease Only commercial loans are normally done at cheaper rate,

  • LVR 
  • 70% up to $1m
  • 65% unlimited, and assessed on its merits

Indicative Lease Only Rates  As a guide, for standard Lease Doc commercial properties, variable rates normally start at 6.99%

Lease Doc Loans

Commercial Loan Features 

Interest Only  A borrower can negotiate with lenders interest only repayments. Lenders can only allow this situation if the business has large cash-flow deposits that are capable of making large interest only repayments before its period expires.  The common interest only commercial term loan is 1-2 year term.  Select commercial loan lenders prefer a 5-year…
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Commercial Specialists

Commercial Specialists INCOME FROM DAY ONE It's all about the cash flow. An example. Purchase price $1m. Govt costs (including stamp duty) and misc $50,000 Total cost $1,050,000 Option 1 Deposit of 20% say $200,000 plus $50,000 for costs. Total outlay $250,000 80% Commercial loan is $800,000. Assumption is deposit is borrowed on a residential…
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Major property trends to expect in 2022

The trend in 2022 seems to be mixed for the commercial property market. Even though growth takes place at a slow pace, property values may be higher at the end of the year.  Many analysts didn’t anticipate the average price rise would be stronger the way it was in 2021. As auction clearance rate dropped,…
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Pros and Cons of Engaging a Commercial Real Estate Broker 

Earning money involves a lot of hard work, and no one wants to lose it casually, so people want to save every bit. So, you cannot afford to go solo when you need to slice some few bucks off a significant real estate deal. Just ask yourself whether it would be worth it to spend…
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