Get multiple offers on real estate loans

Limited companies ("aktiebolag"), sole proprietorships ("enskild firma"), general partnerships ("handelsbolag") and limited partnerships ("kommanditbolag") can apply for financing.

For large real estate loans, the borrower may have to take two loans, a first-mortgage loan and a second-mortgage loan. The first-mortgage accounts for the largest part of the capital (eg 80% of the loan amount) and has the property as collateral for the loan. The second-mortgage loan finances the remaining part of the loan (the amount that exceeds the first-mortgage loan). The second-mortgage loan is usually secured in the property as well, but since it is the property is collateral for the first-mortgage loan, the second-mortgage loan generally has a higher interest rate to account for the increased risk.

In general, a real estate loan works just like a business loan. The difference between the two is that a real estate loan often involves larger loan amounts and that large real estate assets acts as collaterals for the loan.

When committing to real estate loan, the money are not obligated to finance a property acquisition. They can be used for other estate related projects, such as the renovation of an existing property, the construction of a new building, or simply because the company needs an addition of extra capital in the business.

A real estate loan can be used for most types of property, eg:

• Office space
• Industrial properties
• Commercial real estate
• Condominiums
• Warehouses
• Workshops
• Land acquisition
• Agriculture & forestry property

In real estate financing, there are larger requirements for documentation compared to regular business finance. Therefore, remember to include a repayment plan, project calculation and a property valuation in your application. A proper business plan enhances the opportunity to receive offers with good terms for your company and can therefore be valuable to include in your application.

There are a number of benefits when investing in real estate. Historically, the return on properties has been stable, and above the average for other financial assets (such as shares), while the risk has been significantly lower. Investing in real estate can also be seen as a protection against inflation, as the value of real estate properties often increases due to increased rental income, while capital generally decreases in value.

Many companies has real estate as their main business. For example, companies can buy and renovate properties or invest in apartment buildings and mediate rental apartments. This means that a property financing can be used for both rental properties, commercial properties, holiday homes, condominiums and more.

At Krea, you can compare real estate finance completely free of charge. For every mediated application through Krea, we receive a commission from the lender. This means that there will be no extra cost for you as an applicant, as the lender carries the cost.

To apply for a business loan is non-binding and we do not receive any payments until you have found a business loan and received the payout on your account. We are on your side in the negotiations until your business has found the right loan.

At Krea, you can apply for real estate financing between SEK 1-15 million. For loan amounts above 15 million SEK, we recommendKrea Plus. It is usually possible to borrow up to 85% of the property's value.

A credit check is registered on the company you are applying for, as well as for each personal guarantor you state in your application.

If only one credit check is made, the creditworthiness of the guarantor or your company is not affected.

However, if multiple requests are made during a short period, it can affect the guarantor's or company's creditworthiness. Our lenders take part of the same report that was issued by Krea, and do not make their own. This ensures that your business is not negatively affected by multiple credit checks.

We recommend you to include as much relevant information as possible when you are creating your application.

The more relevant information that the lenders receive, the more accurate the risk assessment they can make, which facilitates for them to provide the best offers.

Examples of information that is interesting for lenders are:

• Balance sheet and income statement for the last 12 months.
• Additional collateral in the form of, for example, a property mortgage.
• That you state at least one guarantor. You can state yourself or another person(s).
• Budget, here you can find a template for creating a budget.
• Property valuation.

Yes, many of our lenders offer different types of repayment plans, of which bullet amortization is one of them.