Does Anyone Know Which Banks Offer Home Loans for Businesses?

Lanonally on 09/05/2024 - 15:05
Last edited 09/05/2024 - 15:49

Hi OzB, I'm looking for a home loan under the following requirements, however I've struggled finding any information on this via the banks websites, so it has been hard to window shop any rates. Does anyone know what this product I'm looking for is exactly?

  • Loan Purpose is to fund a home loan purchase
  • Security is that same home
  • Loan is written under the name of a business (not a personal holding)
  • Investment, not owner occupied

I've noticed some banks offer 'loans for business owners', which could be what I'm looking for. Does that restrict the loan to be in the name of the individual however? Appreciate any help with this.

Financial Home Loan Loan

Comments

  • Jimothy Wongingtons on 09/05/2024 - 15:20
    +4

    If the loan (for a home) is in business name (wasn’t aware that was even an option) I was under the understanding the title of property must also be under business name? (Happy to be corrected)

  • keji on 09/05/2024 - 15:23
    +1

    The typical setup is purchase of property under a business name. Most major banks won't accept a trading business so it's mainly a holding shell. Loan is secured by a director's guarantee. You should also clarify if it's an investment property or owner occupied for the brokers in the forum to help you.

    • anonally on 09/05/2024 - 15:50

      Thank you, added! Its investment

  • Dollar General on 09/05/2024 - 15:24
    +1

    Why would a business need a home loan?

    They would just use a business loan to purchase a property

    • bobbified on 09/05/2024 - 15:51
      +1

      Businesses need homes too! haha

    • anonally on 09/05/2024 - 15:51
      -1

      Business Loans (purpose is to invest in the business, rather then a home) seem to be at a much higher rate, I'm hoping to get it lower then that if possible

      • Porker on 09/05/2024 - 16:00
        +1

        I was talking to a loans manager about a similar idea and as you've said, business loans do attract higher rates BUT are easier to obtain than home loans.

        Home loan applications go through a lot of scrutiny following the commission review where applications for business loans are largely unchanged.

  • Baysew on 09/05/2024 - 15:26

    Why not start by calling NAB?

    • anonally on 09/05/2024 - 17:48

      I did, they weren't able to give me pretty much any details, without first coming into branch and going through the company books with them. Not even indicative rates. It makes it very hard to shop around and get a good deal when you have to go into branch for an hour at every bank!

  • sheenaxxx999 on 09/05/2024 - 15:36

    Hi…it’s difficult process..but the bank you have home loan with is the best option as they have your history so can trust you more…we have tried it 3-4 times…got two loans albeit bit late but still better than using private loan sharks…good luck

  • mskeggs on 09/05/2024 - 16:26

    You want a company to purchase a piece of residential real estate as an investment?

    And the company will lease this out to a renter?

    And you want the company to borrow money to fund this investment?

    If this is correct, finance is possible, but likely at a higher rate than a usual individual's investment loan. The lender will also likely want a personal guarantee.
    Note also some states have land tax with no threshold for corporate entities.

  • netjock on 09/05/2024 - 16:43

    You trying to take advantage of the new build to rent legislation? Good luck

  • Zeph101 on 09/05/2024 - 20:36

    Is this an existing company or a new company set up just to buy a property?

    Does the company have enough for a deposit and can repay the loan if the property wasn't rented?

  • miwahni on 09/05/2024 - 22:02
    +1

    Sounds like a standard investment mortgage, taken out in the name of the company, usually involving joint and several guarantees from directors (who may be required to obtain independent legal advice). There are banks that will do this at standard resi rates, best to approach a broker to assist if you're time-poor.

    • anonally on 09/05/2024 - 22:06

      Thank you for the info, does 'resi rates' refer to consumer home loans, or to residential secured business loans?

  • Mulga Bill on 09/05/2024 - 22:26

    I work for a bank - I know Bendigo Bank offers Non-Individual Residential Investment Loans for non-trading companies…it generally must be a company set up for this specific purpose.

    • anonally on 09/05/2024 - 23:31

      Thanks, is this what you are referring to?
      https://www.bendigobank.com.au/business/loans-and-finance/sa…
      A pleasantly surprising amount of info provided as well, alongside a rate much better then a business loan!

      • Mulga Bill on 10/05/2024 - 08:35

        No, its called a Non-Individual Residential Investment Loans or a NIRIL. If you search "NIRIL" on the magnifying glass at top of their website I believe there is a little bit about it - there is also a schedule of interest rates showing the NIRIL rates. You can also ask in branch but I believe as it is a business product they would have to refer you onto the business team for more info.

        Also keep in mind this type of borrowing has high establishment fees - valuations, guarantor document generation/fees, independent legal/financial advice, etc plus potentially has ongoing annual reviews where as a Home Loan is generally "set and forget"

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