Low rate commercial loan

A commercial property loan is a mortgage for your business premises. It can be used for funding a commercial property purchase, refinancing an existing commercial loan, buying new equipment or financing other business activities.
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Our low rate commercial loan works in a similar way to a normal home loan. It can be extended for a loan term up to 30 years. You can choose between Principal & Interest or Interest Only repayments. You can also select loan features such as split accounts or an offset facility.

Loan interest rates for commercial property loans are typically higher than standard home loans. Yard’s commercial interest rates start at 8.09% p.a. Book a call with a loan expert to discuss your requirements and loan eligibility.

Interest rates on commercial loans are determined based on a number of factors. Some of the key factors include:
    •   Loan-to-value ratio (LVR) – this ratio measures the loan amount versus the value of the property used as a security for the loan. Lower LVR attracts a better interest rate
    •   Borrower financials – we review the income, expenses, assets and liabilities of the loan applicants. A borrower with a strong financial profile would attract a better interest rate
    •   Borrower credit history – low credit score, late repayments or defaults would attract a higher interest rate
    •   Income verification documentation – you can apply for a Yard commercial property loan as a full doc loan using tax returns or a low doc loan where you can provide alternative income verification documents. Low doc loans typically come at a higher interest rate

Yard can provide commercial property loans with 20% deposit up to 80% LVR for a new purchase or a refinance of an existing loan. The deposit requirement could vary based on the location and type of property used as a security for the loan.

Yard completes a serviceability test to determine how much you can borrow for a commercial property. To estimate this, we would review your income, expenses, and existing loan commitments. You also need to demonstrate that you have sufficient assets to provide a 20% deposit.

Yard can provide commercial property loans with a term of up to 30 years.

The key difference between a commercial property loan and a residential loan is the property type and loan objective.

Property type:
    •   Residential mortgages are used for financing properties where the borrower intends to reside, such as houses or apartments
    •   Commercial mortgages are designed for commercial properties used for business purposes, including office spaces, warehouses, retail shops, etc.

Loan objective:
    •   Residential Mortgages are primarily used for personal housing needs
    •   Commercial Mortgages are used for business purposes, such as acquiring income-generating commercial properties for investment or the borrower’s own business operations