Quick answer: A 30-year amortisation can be used to calculate repayments while the legal facility matures in three years. At maturity you may need the lender to renew, refinance elsewhere or repay the balance. Treat that future refinance as a real risk from day one.
Questions borrowers, investors and developers commonly ask
- Why does my commercial offer say 30-year repayments but a 3-year term?
- Can the bank refuse to renew at the end?
Amortisation controls scheduled principal
A longer amortisation lowers scheduled repayments and leaves a larger balance outstanding.
Contractual maturity creates refinance risk
At maturity, property value, lease status, borrower financials, interest rates and lender appetite may all be different.
Related guides
General information only. Commercial-property and development lending criteria vary by lender, transaction, security and market conditions. This is not legal, tax or investment advice.
Frequently asked questions
Why does my commercial offer say 30-year repayments but a 3-year term?
A 30-year amortisation can be used to calculate repayments while the legal facility matures in three years. At maturity you may need the lender to renew, refinance elsewhere or repay the balance. Treat that future refinance as a real risk from day one.
Can the bank refuse to renew at the end?
A longer amortisation lowers scheduled repayments and leaves a larger balance outstanding.
Will every lender treat this the same way?
No. Commercial and development lending policy varies materially by lender and transaction.
Should I apply before the structure is tested?
For material or unusual transactions, test lender fit and the funding structure before creating formal applications.
Sources and verification
Need help matching this to a business-finance option?
GPS Finance can review the funding purpose, conduct, documents and lender fit before you make a formal enquiry.
