Commercial Construction Loan

All you need to know about commercial construction loans

Commercial Construction Loans and Mortgages involve the building and construction of commercial, industrial and retail workspace. Commercial Construction Loans can be tailored for both owner builders and licensed builder loans.

What is the maximum LVR available for a commercial construction loan?

The maximum LVR allowable for a Commercial Construction Loan is 70%. This LVR limit can also be based on hard cost or end valuation. These 2 lending options differ between lenders and therefore one must be prudent when determining which option best meets their lending requirements.

Hard cost relates to the land and building/construction cost component. These 2 components are added together to bring a total hard cost value as they are tangible.

End valuation involves a lender advancing finance based on the final value of the proposed commercial, retail or industrial property. There are specific factors which must be met to allow this type of advance, such as not lending initially more than 70% of the land value.

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Frequently Asked Questions

What types of properties are used for commercial construction loans?

The types of properties used for commercial construction loans are:

  • Commercial property
  • Industrial property
  • Retail property
  • Commercial office space
  • Commercial office buildings
  • Bulky goods centres
  • Medical Centres

What name types can be used to finance Commercial Construction Loans?

The name types that lenders will approve for Commercial Construction Loans are:

  • Personal name
  • Company name
  • Trust names
  • Partnership name
  • Business name

Commercial Property Loans

View a comprehensive list of commercial properties

Commercial Property Loans

Calculators

Use our unique & innovative mortgage calculators to find out how much you can borrow.

Mortgage Calculators

At Mortgage Providers we understand the Commercial Construction Loan process. Further we know which lenders offer the highest LVR coupled with the cheapest interest rate and best loan terms. To get the best quality Commercial Construction Loan that meets your needs give our team a call.