{"id":28688,"date":"2023-03-17T11:49:55","date_gmt":"2023-03-17T11:49:55","guid":{"rendered":"https:\/\/swoopfunding.com\/au\/?post_type=blog&p=28688"},"modified":"2024-05-03T12:42:54","modified_gmt":"2024-05-03T12:42:54","slug":"how-to-get-a-business-mortgage","status":"publish","type":"blog","link":"https:\/\/swoopfunding.com\/au\/commercial-mortgages\/how-to-get-a-business-mortgage\/","title":{"rendered":"How to get a business mortgage"},"content":{"rendered":"\n
You might need a business mortgage, also known as a commercial mortgage<\/a>, if you\u2019re looking to buy a business that includes property, a new building or release equity from an existing property you already own. Read on to find out how business mortgages work and how to get one. <\/p>\n\n\n\n A commercial mortgage is a type of loan that is used to buy property or land for commercial use. While standard unsecured business loans<\/a> can offer funds of up to $250,000, commercial mortgages are suitable for businesses that need to borrow between $50,000 to $25,000,000. <\/p>\n\n\n\n Similar to a residential mortgage, you usually borrow the money from a bank or specialist lender and then repay it in monthly instalments over a set term, with interest added on top. However, with a commercial mortgage, the value of the business property or land is usually much greater than it is with a residential mortgage. <\/p>\n\n\n\n Commercial mortgages usually have terms of between three and 25 years and you will usually need a deposit of between 20% and 40%.<\/p>\n\n\n\n The two main types of commercial mortgage are owner-occupied and commercial investment mortgages. <\/p>\n\n\n\n Owner-occupied mortgages are used if you want to buy a property to be used by your own business. This could be your main place of work or a regional location. <\/p>\n\n\n\n Commercial investment mortgages, on the other hand, are used to buy a property as an investment \u2013 for example if you want to rent it out to other businesses or individuals. If the property is residential, you\u2019ll need a residential buy-to-let mortgage.<\/p>\n\n\n\n Commercial mortgages are often used by business owners who are looking to buy larger premises to enable them to expand. Buying their own premises can also help business owners avoid rising rents or higher maintenance fees. <\/p>\n\n\n\n However, commercial mortgages are also used by investors who want to buy property to lease to other businesses. A residential property investor can use a commercial mortgage to buy several properties to rent to tenants. <\/p>\n\n\n\n You\u2019re more likely to get a commercial mortgage if you have a strong credit history and your business is in good financial health. Lenders will consider factors such as your business\u2019 projected income to determine whether you will be able to cover the cost of the loan, as well as your cash flow and any debts you owe. Rental income may also be taken into account. <\/p>\n\n\n\n If you\u2019re thinking of applying for a commercial mortgage, you will usually need to:<\/p>\n\n\n\n For existing businesses, lenders will look at your trading history. You\u2019ll need at least three years of financial accounts to be considered by high street banks and at least one full years of accounts for Tier 2 and Tier 3 lenders. <\/p>\n\n\n\n If you want to buy a property to start a business, you will need to have a significant lump sum to put down as a deposit. If you have no trading history, lenders might ask for a deposit of around 50%. However, you may also be able to use existing property you own in lieu of a cash contribution towards the purchase.<\/p>\n\n\n\n Some of the main features of a commercial mortgage include:<\/p>\n\n\n\n Some of the key benefits of taking out a commercial mortgage are outlined below:<\/p>\n\n\n\n It\u2019s generally best to speak to a mortgage broker before applying for a commercial mortgage as they will be able to talk you through your options and help you find the right deal. You can also apply directly to the lender, but commercial mortgages aren\u2019t as easy as residential mortgages to research yourself online.<\/p>\n\n\n\n As part of your application, you might need to provide the following documents and information:<\/p>\n\n\n\n Interest, whether at a fixed rate or variable rate, will be added to your mortgage repayments each month. If your interest rate is fixed, that means the rate of interest you pay will stay the same for the duration of your loan. If it\u2019s variable (and most commercial mortgages are), your rate of interest, and therefore your repayments, can go up or down in line with movements in the Reserve Bank of Australia base rate. <\/p>\n\n\n\n How much you pay in interest will depend on factors such as the loan size, type of lender, your credit history and the size of your deposit. Commercial investment mortgage rates tend to be slightly higher compared to owner-occupied commercial mortgage rates as investment properties are slightly higher risk.<\/p>\n\n\n\n There are a number of fees you should be aware of before taking out a commercial mortgage. These include:<\/p>\n\n\n\n There are a number of alternatives you can consider if you\u2019re not sure a commercial mortgage is right for you. These include:<\/p>\n\n\n\n When comparing commercial mortgages, you\u2019ll need to factor in the interest rate, including whether it\u2019s fixed or variable, how much you are likely to be able to borrow and over what term, and how much you\u2019ll be charged in the way of fees. <\/p>\n\n\n\n Our team at Swoop would be happy to discuss your requirements with you to help you find the right commercial deal for you. Register with Swoop<\/a> today to get started.\u00a0Additionally, try our commercial mortgage calculator<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" You might need a business mortgage, also known as a commercial mortgage, if you\u2019re looking to buy a business that includes property, a new building or release equity from an existing property you already own. Read on to find out how business mortgages work and how to get one. What are commercial mortgages? A commercial […]<\/p>\n","protected":false},"author":22,"featured_media":28689,"comment_status":"open","ping_status":"closed","template":"","category":[1368,1669,1666,1667],"acf":[],"featured_image_urls":{"full":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured.jpg",8192,4804,false],"thumbnail":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured-150x150.jpg",150,150,true],"medium":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured-300x176.jpg",300,176,true],"medium_large":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured-768x450.jpg",768,450,true],"large":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured-1024x601.jpg",1024,601,true],"1536x1536":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured-1536x901.jpg",1536,901,true],"2048x2048":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured.jpg",2048,1201,false],"image_blog":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured-408x252.jpg",408,252,true],"image_podcast":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured-397x298.jpg",397,298,true],"image_banking":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured-34x20.jpg",34,20,true],"image_blog_internal":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured-840x480.jpg",840,480,true],"image_blog_medium":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured-1024x500.jpg",1024,500,true],"image_single_banking":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured-80x47.jpg",80,47,true]},"post_excerpt_stackable":" You might need a business mortgage, also known as a commercial mortgage, if you\u2019re looking to buy a business that includes property, a new building or release equity from an existing property you already own. Read on to find out how business mortgages work and how to get one. What are commercial mortgages? A commercial mortgage is a type of loan that is used to buy property or land for commercial use. While standard unsecured business loans can offer funds of up to $250,000, commercial mortgages are suitable for businesses that need to borrow between $50,000 to $25,000,000. Similar to…<\/p>\n","category_list":"Blog<\/a>, Commercial mortgages<\/a>, SME support<\/a>, Swoop guides<\/a>","author_info":{"name":"Rachel Wait","url":"https:\/\/swoopfunding.com\/au\/author\/rachel-wait\/"},"comments_num":"0 comments","featured_image_urls_v2":{"full":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured.jpg",8192,4804,false],"thumbnail":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured-150x150.jpg",150,150,true],"medium":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured-300x176.jpg",300,176,true],"medium_large":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured-768x450.jpg",768,450,true],"large":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured-1024x601.jpg",1024,601,true],"1536x1536":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured-1536x901.jpg",1536,901,true],"2048x2048":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured.jpg",2048,1201,false],"image_blog":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured-408x252.jpg",408,252,true],"image_podcast":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured-397x298.jpg",397,298,true],"image_banking":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured-34x20.jpg",34,20,true],"image_blog_internal":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured-840x480.jpg",840,480,true],"image_blog_medium":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured-1024x500.jpg",1024,500,true],"image_single_banking":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2023\/08\/Business-mortgage-featured-80x47.jpg",80,47,true]},"post_excerpt_stackable_v2":" You might need a business mortgage, also known as a commercial mortgage, if you\u2019re looking to buy a business that includes property, a new building or release equity from an existing property you already own. Read on to find out how business mortgages work and how to get one. What are commercial mortgages? A commercial mortgage is a type of loan that is used to buy property or land for commercial use. While standard unsecured business loans can offer funds of up to $250,000, commercial mortgages are suitable for businesses that need to borrow between $50,000 to $25,000,000. Similar to…<\/p>\n","category_list_v2":"Blog<\/a>, Commercial mortgages<\/a>, SME support<\/a>, Swoop guides<\/a>","author_info_v2":{"name":"Rachel Wait","url":"https:\/\/swoopfunding.com\/au\/author\/rachel-wait\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/blog\/28688"}],"collection":[{"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/blog"}],"about":[{"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/types\/blog"}],"author":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/comments?post=28688"}],"version-history":[{"count":2,"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/blog\/28688\/revisions"}],"predecessor-version":[{"id":35113,"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/blog\/28688\/revisions\/35113"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/media\/28689"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/media?parent=28688"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/category?post=28688"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}What are commercial mortgages?<\/h2>\n\n\n\n
What are the types of commercial mortgages?<\/h2>\n\n\n\n
When are commercial mortgages used?<\/h2>\n\n\n\n
Who can get a commercial mortgage?<\/h2>\n\n\n\n
What is the eligibility criteria?<\/h3>\n\n\n\n
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Features of a commercial mortgage<\/h2>\n\n\n\n
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The business benefits of taking out a commercial mortgage<\/h2>\n\n\n\n
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The application process for a commercial mortgage<\/h2>\n\n\n\n
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How do you pay interest on a commercial mortgage? <\/h2>\n\n\n\n
What fees are involved?<\/h2>\n\n\n\n
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What are the alternatives to a business mortgage?<\/h2>\n\n\n\n
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How do I compare commercial mortgages?<\/h2>\n\n\n\n