Investment Property Loans Vs Commercial Property Loans Business loan vs home loan for property: the features of each, side by side.
We have a team of experienced brokers at Greenline Home Loans who can assist you with acquiring and applying for commercial property loans, investment loans, home loans, bridging loans, debt consolidation and more. Our team can ensure we offer top customer service, provide personalised advice, and guide you through the process of an investment or commercial property loan.
Our commercial property loans and investment property loans have several features which aim to assist you in meeting your financial and personal goals, with added ease and security.
Commercial property loans
You may be looking for a commercial property loan for many reasons. Commercial property loans are generally used when someone is looking to buy a premise for their company, although can sometimes be used when an investor is looking to diversify their property portfolio. Greenline Home Loans can assist you in finding the best commercial property loan for you and provide many benefits and offer a range of opportunities for you and your business, which may include:
- Onboarding of new staff members
- Implementation of new contracts
- Increased stock levels
- Equipment upgrades
- Initiatives and campaigns to boost new business
Greenline Home Loans can assist in all aspects of applying and acquiring your commercial property loan, and will work with you to understand your circumstances, goals, requirements, and budget. Our commercial property loans have 4 main features which include:
- Flexibility with loan terms – a commercial property loan can generally be paid off over a shorter loan term in comparison to a home loan. Our commercial property loans are offered over various terms.
- Interest-only repayments – commercial lenders may be able to negotiate interest-only repayments for commercial property loans for people who meet certain requirements such as a large deposit and strong cash flow.
- Capitalising interest – there may be the possibility for the interest of your loan to be added onto the commercial property loan depending on some variables such as the loan staying below a certain threshold and under a specific percentage of the property value.
- Line of credit facility – line of credit offers flexibility, control and value which may be beneficial for a commercial premise as maintenance and costs can add up.
Our experienced brokers at Greenline Home Loans can answer any questions you may have about commercial property loans, the process of applying and what the loans entail.
Investment property loans
A residential investment property may be an appealing option if you are looking to expand your investment portfolio or meet your financial and investment goals. Our friendly team aims to guide you throughout the process of securing an investment loan, from the application process through to post-settlement.
Greenline Home Loans can assist you in finding the best residential investment property loan for you and provide many benefits and offer a range of opportunities for you and your investment goals, which may include:
- Interest-only payments – interest-only payments allows borrowers to only pay interest for a set amount of time, which generally ranges from 5-10 years which is a great way to save some extra money.
- Offset account – an offset account can be used by investors as a form of a savings account, which may reduce the interest charged towards your loan depending on the balance of the offset account.
- Repayment holiday – a repayment holiday can be used if the investor needs to take a break from repayments (which is generally available for up to 12 months) in the event that the property is unoccupied, and the investor is not able to rely on rental income.
- Line of credit facility – a line of credit facility may be an option where the investor can borrow additional money without reapplying, and it will be secured against the equity in the property.
Our friendly team at Greenline Home Loans can assist you with any questions or queries you may have about investment loans. We aim to assist you in meeting your future and financial goals!
Reach out to Greenline Home Loans today!
Commercial vs investment property loans: FAQs
What is the difference between a business loan and a home loan for property?
A commercial property loan buys premises for a business (or a commercial investment) and is generally repaid over a shorter term than a home loan, with interest-only repayments negotiable for borrowers with a large deposit and strong cash flow, the option in some cases to capitalise interest, and a line of credit. A residential investment loan buys a home to rent out and comes with features like an offset account, interest-only periods, a repayment holiday and a line of credit against your equity. A commercial loan versus a residential loan is a question of the property and the purpose.
Can you use a business loan to buy property?
A commercial property loan is the business loan for buying property: it is used when a business wants premises of its own, and sometimes by an investor adding commercial property to a portfolio. Greenline arranges commercial property loans and works through the application with you.
What is the difference between an investment loan and a home loan?
An investment loan finances a property you rent out rather than live in, so its features are built around an investor's needs: interest-only payments for a set period, an offset account used as a savings account, a repayment holiday of generally up to 12 months if the property is unoccupied, and a line of credit secured against the equity. An investment loan versus a mortgage on your own home is a difference of purpose and features more than of mechanics.
How do commercial property loans work?
They finance the purchase of commercial premises and are assessed on the business and its cash flow as well as the property. The article names four features: flexible, generally shorter terms; negotiable interest-only repayments; the possibility of capitalising interest while the loan stays under a threshold; and a line of credit facility. For a commercial property investment loan, see our product page.
What features does a residential investment property loan have?
Interest-only payments for a set time, an offset account that reduces the interest charged, a repayment holiday when the property is unoccupied, and a line of credit facility secured against the equity in the property, so you can borrow more without reapplying.
Are commercial property loan terms shorter?
Generally, yes: a commercial property loan can usually be paid off over a shorter loan term than a home loan, and Greenline's commercial property loans are offered over various terms.
Can I get interest-only repayments on a commercial property loan?
Commercial lenders may be able to negotiate interest-only repayments for people who meet certain requirements, such as a large deposit and strong cash flow. It is case by case, which is where a broker's knowledge of lender policy helps.
Which loan suits me?
If you are buying premises for a business, a commercial property loan; if you are buying a home to rent out, a residential investment loan. Greenline's brokers assist with both, with access to 50 lenders, and can walk you through the features that matter for your goals.
Where to next
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Articles are general information. A Greenline broker can look at your own situation and compare options from 50+ lenders, with no obligation.
This article was published on 13 July 2022 and describes the lending environment at that time. Rates, grants and lender policies change.