News & Articles Basics about Commercial Property Loans Malaysia
Basics about Commercial Property Loans Malaysia
18 Sep 2015
Although the most common loans taken from the bank involves domestic houses, there is often a need by people in the business community to obtain loans for commercial lots. Although many of the basic features of domestic loans and commercial loans are similar, there are also many fundamental differences.
Here we will outline the basic characteristics of how commercial property loans work by answering some frequently asked questions.
1) What are the different types of commercial property covered by the loan?
The commercial properties included are:
• Shop houses or retail shop or retail outlet
• Office
• Factory
• SOHO and SoVo apartments
• Commercial and agricultural land
2) What is the usual margin of financing for commercial properties?
Banks usually don’t give financing margins that are as high as domestic loans. However there is no restrictions on the margin of financing no matter how many commercial loans you take, unlike housing loans where if you have more two loans, your next housing loan financing margin can only be at best 70%.
3) What about loan repayment periods?
You can also expect that the loan repayment periods for commercial property loans are generally shorter than housing loans, usually from 25 to 30 years at best.
4) Are the banks fussy about what commercial property they finance?
This usually depends on the bank you deal with. The usual factors taken into consideration are the property location, density, type of building,
what floor your lot is on and so on.
5) Are the loan qualifications the same as housing loans?
The process to determine if you are eligible for the loan is very much similar to that of obtaining a housing loan. You can even refinance your commercial lot if you want.
Here we will outline the basic characteristics of how commercial property loans work by answering some frequently asked questions.
1) What are the different types of commercial property covered by the loan?
The commercial properties included are:
• Shop houses or retail shop or retail outlet
• Office
• Factory
• SOHO and SoVo apartments
• Commercial and agricultural land
2) What is the usual margin of financing for commercial properties?
Banks usually don’t give financing margins that are as high as domestic loans. However there is no restrictions on the margin of financing no matter how many commercial loans you take, unlike housing loans where if you have more two loans, your next housing loan financing margin can only be at best 70%.
3) What about loan repayment periods?
You can also expect that the loan repayment periods for commercial property loans are generally shorter than housing loans, usually from 25 to 30 years at best.
4) Are the banks fussy about what commercial property they finance?
This usually depends on the bank you deal with. The usual factors taken into consideration are the property location, density, type of building,
what floor your lot is on and so on.
5) Are the loan qualifications the same as housing loans?
The process to determine if you are eligible for the loan is very much similar to that of obtaining a housing loan. You can even refinance your commercial lot if you want.
Source: DurianProperty.com