Owners may refinance to review pricing, change terms, consolidate suitable debt, release equity or align lending with a changed tenancy or business plan.
What lenders assess
Lenders may review valuation, commercial LVR, lease terms, tenant quality, vacancy, rental income, borrower financials, business performance, existing liabilities and serviceability.
Loan terms and costs
Commercial facilities may use interest-only or principal-and-interest repayments for an agreed period. Allow for valuation, application, legal, registration, lender and discharge or break costs.
Cash-out and risks
Approved equity release may support a defined business or investment purpose, but equity does not establish serviceability or approval. Refinancing can change pricing, covenants, repayments, term and security arrangements.