Quick answer: Compare the all-in facility, not just the interest rate. Commercial loans can differ in establishment and annual fees, amortisation, contractual maturity, review rights, covenants, valuation requirements, security and early-payout conditions.
Questions borrowers, investors and developers commonly ask
- The rate is competitive — what else should I negotiate?
- Why does a three-year loan term matter if repayments are calculated over 20 or 30 years?
Term and amortisation are different
A loan can amortise over a long period but mature or be reviewed much sooner. Know the refinance event before you buy.
Model the exit cost
Include annual fees, legal/valuation costs and potential refinance costs in the investment return, particularly for short contractual terms.
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
The rate is competitive — what else should I negotiate?
Compare the all-in facility, not just the interest rate. Commercial loans can differ in establishment and annual fees, amortisation, contractual maturity, review rights, covenants, valuation requirements, security and early-payout conditions.
Why does a three-year loan term matter if repayments are calculated over 20 or 30 years?
A loan can amortise over a long period but mature or be reviewed much sooner.
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.
