Property finance
Property finance, matched to what the property is for.
Finance for business property: premises, investment and construction. Commercial property and second mortgages, compared side by side.
You don’t pay to compare.
No credit file impact · No cost to compare · No obligation
Start with the purpose
Buying, refinancing or releasing equity: each is a different loan.
Buying or refinancing your premises is done with a first mortgage over the property. Releasing equity without refinancing is done with a second mortgage, which sits behind the first. Commercial property lending can use structures that account for irregular business cash flow, rather than a standard residential test.
The products
Buy or refinance, or release equity.
Business funding
Buying personally, or through an SMSF?
Personal and property funding for business owners.
Compared
Side by side, at a glance.
| Commercial property | Second mortgage | |
|---|---|---|
| Used for | Purchase or refinance | Business capital from a property you already own |
| Property | Owner-occupied or investment | Residential, commercial and rural property can be considered |
| Amount | Varies by lender; shown for each option in your report | $50,000 to $5,000,000 |
| Term | Varies by lender; shown for each option in your report | Typically 3 to 12 months |
| Security | A first mortgage over the property | A second charge, behind your existing first mortgage |
| How you pay | Varies by lender; shown for each option in your report | Interest only or balloon, matched to your exit plan |
| Assessment | Structures that account for irregular business cash flow | Your existing loan terms and total equity position |
| Suits | A business buying its premises instead of leasing | A business owner releasing property equity for business capital |
| In full | Commercial Property | Second Mortgage |
Indicative, and subject to lender assessment.
Is it right for you?
When property finance fits, and when it doesn’t.
Often fits
- Buying the premises your business operates from, instead of leasing indefinitely
- Refinancing an existing commercial property loan where better terms are available
- Business capital from a property you already own
- Keeping your first mortgage, its rate and its lender as they are
Usually not
- Funding without property security, where a business term loan may fit
- A home or residential investment property, where our Personal & Property team can help
Illustrative example
How much equity a second mortgage might release.
Illustrative only, and subject to lender assessment.
- Property worth
- $1,000,000
- First mortgage
- $500,000
- Your equity
- $500,000
- Left after both mortgages
- Typically at least 25%
- Second mortgage
- Up to $250,000 may be possible
- Indicative rate
- An assumed 13% p.a., over a term of up to 12 months
Illustrative only. Uses an assumed 13% p.a. rate for a specialist second mortgage over a term of up to 12 months, and leaves out fees and charges, so it is not a quote or a comparison rate. Your Compare Report shows the rate and term each lender offers, based on your equity and how you plan to repay.
Business funding, compared on real data, in three steps.
How It WorksQuestions about property finance.
Can I buy the premises my business runs from?
Yes. Commercial property finance can fund the premises your business operates from, instead of leasing indefinitely.
Can I release equity without refinancing?
A second mortgage can do that. It sits behind your existing first mortgage, so your first mortgage and current lender stay as they are.
How much equity do I need?
Typically at least 25% left after both mortgages. For example, on a property worth $1,000,000 with a $500,000 first mortgage, you have $500,000 of equity, and a second mortgage of up to $250,000 may be possible, subject to lender assessment.
How do you get paid?
Comparing costs you nothing. Not comparing can cost you plenty.
The headline rate rarely tells the whole story. Fees, charges and loan terms can add far more to what you repay. That’s why your Compare Report shows every cost we can identify side by side.
In most cases, the lender pays us, and only if you decide to proceed with their product offer. For more complex deals, or where the lender pays us little or nothing, we may charge a fee for our service. It doesn’t happen often, but when it does, it’s shown on your Compare Report and we’ll walk you through it before you decide.
No obligation to proceed, ever.
Related
Read more, or work out the cost.
See your options, side by side.
No credit file impact · No cost to compare · No obligation
Or talk to us: 1300 161 641 · support@tradefunding.com.au