What are the commercial property finance requirements?

Applying for a commercial property loan differs from a home loan application in several ways.

• Most banks will only finance up to 75% of a commercial property purchase, meaning you’ll need a deposit of at least 25%.
• Banks usually require commercial property loans to be paid off in under 10 years instead of 20 or 30 years for a home loan.
• You will need to present a business plan for the property.

Presenting a business plan is the challenge and the bank will not approve the loan unless they’re convinced you’ll pull in enough revenue to pay off the loan.

The business plan will need to include:

• An understanding of the commercial purpose of the property.
• A record of the history of the property.
• Details on any required repairs and maintenance.
• Income and expense analysis.