05 Sep 2022

Warehouse & Wholesale Funding – Prime Residential & Commercial Warehouse Funding

commercial finance

Warehouse funding is considered a short-term arrangement loaned to a borrower to provide financing for larger loans. A warehouse is regarded as a standard commercial property and is generally viewed as a non-complex commercial property loan. 

Wholesale residential lenders do not work with individual borrowers. Still, they offer loans through mortgage brokers, credit unions, and banks at discounted prices. Commercial warehouse lenders require a 1.25x profit for owner-occupied warehouse loans and a 1.5x profit for investment. 

Commercial property loans assist businesses in financing purchases and renovations necessary for commercial property. A residential property loan helps borrowers in financing property that will be lived on full time. A lending specialist or mortgage broker can assist potential borrowers through these processes to find the best loan for their needs. 

Commercial property loans are generally regarded as high-risk for lenders because of high-vacancy rates. They can be difficult to obtain approval for. Commercial property loans also have low maximum LVR, higher interest rates, and more fees than residential property loans. 

Mortgage House lending specialists assist potential borrowers in finding the best loans, rates, and more for their business. At the same time, making the application and buying processes go through quickly with less stress placed on the applicant.

Conclusion

In review, warehouse funding is a short-term arrangement loaned to a borrower through larger loans. Commercial property loans assist businesses in financing purchases and renovations. Commercial property loans are generally regarded as high-risk and have low maximum LVR and high-interest rates, with more fees.

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