Commercial Loan Terms

Some commercial loan products allow for prepaid interest for up to 12 months, which can allow you qualify for great interest rate discounts.

You can actually claim a tax deduction for the interest you pay in advance but please speak to a financial professional if part of your investment strategy is tax-related.

Bank bill loans can provide you with a potentially cheaper rate than the headline rates offered by banks and lenders.

Specifically, it’s a commercial rate linked to the bank’s cost of funds, otherwise known as the Bank Bill Swap Rate (BBSY).

As a general rule, the BBSY rate is about the same as the Reserve Bank of Australia (RBA) official cash rate.

The lender will then add a margin based on the overall risk of your application.

The interest rate is actually rolled every 30, 60, 90 and 180 days but the key to the BBSY rate is that it isn’t a fixed rate.

You can refinance back to a variable or a fixed rate any time you like!

You can also get the same standard commercial loan terms as if you were getting a fixed, variable or split rate commercial loan.

A bank bill commercial loan is more suitable for people borrower $2-5 million so give us a call on 1300 889 743 or fill in our online enquiry form and we can let you know if it’s the right commercial loan for you.

We have a number of senior mortgage brokers on our team that specialise in commercial property loans and we can provide guidance on what commercial loan terms will work best for you.

By properly assessing your situation, you’ll be able borrow at the maximum Loan to Value Ratio (LVR) based on your financial situation and we even negotiate significant commercial interest rate discounts that the banks don’t advertise!

Call us on 1300 889 743 or complete our free assessment form to speak with a mortgage broker.