3 Things to Do Before Applying for a Commercial Mortgage

If you are here, you may already know that applying for a commercial mortgage differs from applying for a residential mortgage. Instead of financing a house, you are looking to finance a commercial property to expand your business. This means that a commercial mortgage is often larger in size and value. The rate is also variable, and commercial lenders require a larger deposit (20%-40%).

If you are planning to apply for a commercial mortgage, here are 3 pointers to keep in mind:

1. Consider the repayment plan

Repaying a commercial loan can be more challenging and trickier. They have different repayment terms, such as balloon repayments which require you to pay a large amount at the end of the term. Factor in any existing loan repayments when figuring out how much you will be repaying each month. In case of not being able to pay on time – the lender may ultimately repossess the property, which is damaging for both your credit score and business.

2. Check your credit rating.

Since commercial loans involve higher stakes, the lender looks for a stellar credit rating. If your current business credit rating is poor – you may still secure the mortgage, but it will be at much higher rates. It is better to improve your business credit score before applying for a commercial mortgage.

3. Get a commercial mortgage broker.

Since commercial mortgages are a more complicated affair, getting a broker will save you lots of effort, time, and even money. Taking the services of a commercial mortgage broker will help you navigate through the whole process if you are a resident.

They will ensure you have all the required information and even help you assess which lender is the most suitable for you. If you live in Melbourne, our team at Opulent Financ e can help you take of everything from the application procedure to repayment terms.

Final thoughts

Applying for a business loan can be slightly more complicated than getting a residential mortgage. However, we are here to help you out. At Opulent Finance, we offer commercial mortgage broker services which can help you breeze through the entire process while ensuring you get the best deal!

Siraj Ahmed

2020-11-18

Excellent service. Got us a great loan option and also worked with the bank to get the loan approved during the heights of COVID.

Dhruv Satra

Malaka Ekanayake

2020-11-10

We have had a very pleasant experience working with Opulent Finance. We did not have that much experience with house loans as we were first home buyers but working with Opulent Finance team specially with Ishara, made that experience stress free one. She helped us secure an incredibly competitive interest rate and offered her guidance so we can take advantage of the future interest rate drop. Thank you Ishara, Dayan and team for your incredible support and we have no hesitation what so ever in recommending Opulent Finance for your financial needs

Uma Gunaratne

2020-11-04

Ishara is highly knowledgeable and if you are a first home buyer and new to the intricacies of all that home loans entail, she will really take you under her wing and impart her knowledge and experience and treat you as one of her own. She is also extremely patient but will also be very truthful and upfront in situations which is honestly what you need. She did a very complicated loan for us, and was so incredible efficient and organised with all the paperwork that was required. Not only that, she helped us secure an incredibly competitive interest rate! Ishara has probably spent hours and hours explaining to me details and giving me really good guidance through this momentous period in life! During the cooling off period and settlement, she was constantly chasing up our loan and honestly took a personal interest in the outcome. Our solicitor was also very happy about working with Ishara as she was following the entire process, was always up to date and very easy to work with. Considering that our entire process happened during the covid-19 lock-down and work from home environment, we have nothing but good things to say about how professional Ishara was as she didn't let a single thing slip. We are so glad that we have both Ishara and Dayan in our corner. We will definitely be using them for all future financing needs. Thank you Ishara, Dayan and team!

Harsha Ill

2020-10-11

Opulent Finance gave professional advice for my unique home loan requirement. They respond quickly with the proper information. The process was smooth and I felt comfortable to deal with the team. The team is friendly and professional to deal with. Highly recommended for any one looking for finance.

S P

2020-09-22

I have been dealing with Ishara at Opulent Finance for over 6 months now and she has been faultless. She has helped me secure a loan pre-approval in no time and assisted me with my property purchases. I could not recommend Ishara highly enough.

Afshin Koohestani

Good service and offers.

Janaka Kumara

2020-08-22

A big shout out to Dayan and his team for the seamless service provided during the refinancing process. Thoroughly professional team that pays attention to every detail and has been extremely transparent throughout the process. A team that always has the best interest of clients in mind and makes all efforts to provide the right advise and outcomes to the clients. Highly recommended!

Rakesh Mistry

2020-08-19

They called me back with solution

Indra Jaya

2020-08-12

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