How to best benefit from Commercial Property Loan?
Policy for loan on commercial properties is usually at maximum of 80% of the value of property.
However, there is no limit of how many commercial property. The percentage loan-to-value also varies with types of property as well. For example, shops may get 80%, while Office may get 70%. You can have 2 Shops at 80%, 2 Office at 70%, all up to the bank to decide.
Major thing about commercial property is the risk involved. Usually, banks have different risk appetites for different commercial property types. So, ranging from commercial land, factories, shops, SOVO, service suites, offices, schools, clubs, football field, etc. all are different.
The percentage of price which a commercial loan can get depends on the type of commercial property and what it can be used for in the subsequent business. It is rather very individualized when the bank evaluates the applicant and the property in its intended use by the applicant. Furthermore, commercial properties are usually acquired under company name and different diligence were to be exercised compared to that of individual ownership.