Commercial mortgages may range from 3 to 25 years with both bank and non-bank commercial mortgage lenders. Shorter term finance is also available, and in fact preferred by some commercial mortgage lenders like Chifley Securities.

Chifley Securities can offer longer terms if required. Often though our loans are used to bridge the time when a time critical opportunity or requirement arises and the date when the commercial mortgages department of the high street banks eventually take a decision. When the client arranges a long term facility with a bank it gives Chifley Securities a clean exit strategy and allows us to service more clients more quickly.

You will often hear short terms loans referred to as bridging loans or development loans when they are related to property development. Chifley Securities is a commercial mortgage lender of existing, built, commercial property, and does not lend for property development unless other existing commercial property can be offered as security.

Q: Is it true that all commercial mortgages are variable rate loans?

A: No, but most are. Typically a commercial mortgage rate will be quoted as percentage over the base rate, as set by the RBA (Reserve Bank of Australia). Fixed rate commercial mortgages are available on a case by case basis which will vary from lender to lender.

About the Author: Dominic Lambrinos

Dominic Lambrinos is a financial expert who provides professional business finance solutions, commercial financial engineering, expert review of financial submissions, negotiation, equity raising, business sales, and trade financing. Dominic is also a sought after finance business trainer, and accomplished public speaker.

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