25 Year Commercial Loans
25 Year Commercial Loans
Commercial loans with 25 year loan terms are available in Australia from several financial institutions. It comes as a surprise to a borrower when they realise that the traditional 15 year commercial loan term can actually be higher and therefore there is no need to change the commercial loan.
Which lenders offer 25 year commercial loans?
- There are approximately 8 different 25 year commercial loan lenders in Australia.
- These lenders range from either banks, credit unions, building societies, mortgage managers, and finance companies.
- Our brokers have access to a wide range of lenders, thereby giving you a greater opportunity to find the most competitive loan for you.
Loan types available with a commercial loan over 25 years
With a 25 year commercial loan you could take out any of the following loans:
- Variable loan
- Interest only loan
- Fixed loan
- Line of credit
- Overdraft
Further, these commercial loan types can be combined so you could take out a combination of different products depending on what your needs are.
What is the benefit of a 25 year commercial loan?
- More time to pay off the mortgage.
- Reduced monthly repayments.
Commercial Property Loans
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Calculators
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Borrowing capacity using a 25 year commercial loan?
With a 25 year commercial loan, your borrowing capacity is higher. As the loan term is spread out over a longer term, the over cash flow position allows you to borrow more. When you compare the borrowing capacity of a 25 year commercial loan compared to a 15 year commercial loan, you will find the difference as per the table below.
| Type Of Lender | 15 Year Commercial Loan Lender | 25 Year Commercial Loan Lender |
| Income Per Annum | $110,000 | $110,000 |
| Rental Income | $75,000 | $75,000 |
| Marital Status | Single With No Kids | Single With NO Kids |
| Other Monthly Liabilities | General Living Expenses | General Living Expense |
| Interest rate | 7.1% | 7.1% |
| Borrowing Capacity | $1,405,000 | $1,709,000 |
Do 25 year commercial loans require annual reviews?
Most 25 year commercial loan lenders do not require annual reviews. This is great for borrowers who do not like it when a lender asks for the annual financials of the borrower’s business. Hence, most of the loans for 25 years secured by commercial property are ‘set and forget’ with no annual reviews.
Can I get a 25 year commercial loan using low doc policy?
It is possible to get a 25 year commercial low doc loan from a small number of lenders. These lenders can be both banks and non bank lenders who provide low doc commercial loans at 25 year terms. Further, these loans have a maximum borrowing loan ceiling amount to $2,500,000.
Types of borrowers for a 25 year commercial loan?
There are a few different borrowing names one can use for a 25 year commercial loan. These include borrowing in:
- Personal name
- Company name
- Trust name
- Partnership name
- Business name
At Mortgage Providers we have access to a panel of different lenders offering various forms of 25 year commercial loans. We know how to package these loans to suit your requirements when you enquirer with us.