When it comes to running your business within a physical space, you basically have two options - leasing or buying. Leases can work for many businesses, but owning your own space can be very beneficial for your own long-term plans. This is where business mortgage loans usually come in.

What is a Business Mortgage Loan?

A business mortgage loan is a type of commercial loan that business owners can take out to purchase a commercial property. This also applies if they only mean to redevelop an existing property. Unlike residential mortgages, business loans generally have shorter terms. 

The deposit for such a loan naturally varies depending on your property, but business owners can usually expect to have a balloon payment waiting at the end of the term to round things out. Your deadline for this type of loan can range from half a decade to two decades. On top of that, the loan-to-value ratio of these is noticeably not as high as a residential mortgage.

To get approved, business owners will need to at least have an Australian Business Number and documents showing their individual and business tax returns reflective of the last two years. Of course, versatile mortgage brokers will be able to help you out with the necessary paperwork.

Who is Eligible for a Business Mortgage Loan?

It is a given that this type of loan is only available for businesses. Of course, the nature of what business this may be actually falls under a pretty wide range. This loan can be taken up by sole traders, partnerships, public companies, proprietary companies, local government bodies, government schools, and associations. 

The most important factors here will be annual revenue, business plans, and collateral available. As with regular loans, lenders will require collateral when considering a loan. In the wake of the COVID-19 pandemic, certain lenders also have additional requirements when it comes to getting any business-related loans. For this matter, you should do your research and ask lenders what their requirements are. 

Reasons to Get a Business Mortgage Loan

There are quite a few benefits to getting a business mortgage loan.

  • Owning your own space can give you more freedom and control over how to run your business. This also includes any changes you want to make to optimize daily operations.
  • You aren’t as time-restricted when it comes to your business plans and executions. Without a limited lease hanging over your head, you can focus on your business more and have a little more flexibility with how your monthly payments work.
  • Owning property provides you with the potential to generate revenue from the space itself. One way to do this is by leasing sections out to other services or small businesses. 


With this information, you can make a more insightful decision on whether or not a business mortgage loan is for you. There are many small business lending solutions that make this a more feasible option today. Of course, you will have to reach out to services to figure out the best plan for your goals and budget. 

Get the mortgage solutions that fit your needs by connecting with the right mortgage lenders in Sydney. Reach out to Wealthy You to learn more and grow your business.