Buying commercial property can be a daunting task; you must consider every factor from first finding the best property for you and managing documents to arrange mortgages. Investing in property takes lots of time and effort.
The most crucial part of buying a commercial property is handling the mortgage – even a slight tweak in the contract or interest rates will disturb your finances.
Like most people, buyers of commercial property will want to have a low-interest rate when you are looking for a mortgage. This way they can save thousands of dollars over the tenure of their mortgage.
Among the many questions that a buyer has when applying for a mortgage – the most heated one is, do low-interest rates apply to the entire duration of your mortgage?
Due to the pandemic, the interest rates have decreased, and everyone wants to get the maximum benefit out of the situation, but what is the answer to this question? Well, the interest rate of your mortgage will depend on the type of interest within your mortgage contract.
The two types of interest are one of the vital factors to determining your interest rate. There are two basic types of interest rate in your mortgage – fixed and adjustable.
A fixed interest rate doesn’t change over time, free from surprises during the time of your mortgage. While adjustable interest rates may have an initial fixed period where the interest rate does not change. Then it can go up or down each period based on the market. An adjustable interest rate is uncertain, but it has lower interest in the beginning.
If you opt for a fixed interest rate – the set interest will apply to the entire duration of your mortgage, however this is unlikely to be as low as the current rate. However, with the adjustable interest rate your mortgage interest will change after a certain period.
Some other factors that can impact your mortgage interest rate are credit scores, property location, property price, loan amount, down payment, loan term, and loan type.
Before you start looking for a commercial property, it is essential to get an idea of what prices fit into your budget, and what mortgage amount your business qualifies for.
Not all real estate mortgages are the same, so knowing what kind of mortgage you will require can help you prepare yourself for talking to lenders and getting the best deal.
If you don’t want to risk going through this process alone, then it’s important to consult a professional to assist you in making the right decision. If now is the right time for you to invest and purchase a commercial property, then you need to talk to Axis Property.
Axis Property are one of Australia’s best commercial real estate agencies, they can help to make buying, selling, leasing and managing commercial properties with ease.
Contact Axis Property today, if you want to explore hundreds of properties listed. Be it buying, selling, rent or lease – they can serve all your needs.