Benefits of Mezzanine Commercial Property Loans
Mezzanine Commercial Property Loans can also be used to reduce a borrower’s equity to allow them to use some of their equity for other properties and in doing so diversifying their risk.
Mezzanine Commercial Property Loans comes at a higher cost, but reducing the borrower’s equity contribution will increase the return on equity considerably.
In most instances, all monies will be in accordance with the following priorities when a Mezzanine Commercial Property Loan is used:
Typical Lending Parameters for Mezzanine Commercial Property Loans:
Up to 80% LVR
from 16%p.a.
Up to 90% LVR
from 20%p.a.