Commercial loans u/w criteria

Viewing 7 posts - 1 through 7 (of 7 total)

fewster
Member
@fewster
Join Date: 2004
Post Count: 5
November 9, 2004 - 1:14 pm
Another one for the brokers – Sorry guy’s! [cigar]
What criteria/documentation do the major banks request for approving commercial loans?
Is there a minimum loan amount?
What is the maximum LVR that they will lend to assuming you can service the deal?
Cheers
Kano
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
November 9, 2004 - 1:33 pm
Similar to residential. It varies alot, with higher interest rates and lower LVRs – No LMI available, max LVR around 70%, can go to 80% at higher rates. valuations are harder to do, cost more and can vary a lot. very hard to get commerical finance in non city areas.
Terryw
Discover Home Loans
Mortgage Broker
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
fewster
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@fewster
Join Date: 2004
Post Count: 5
November 9, 2004 - 1:46 pm
Thanks Terry
Much appreciated! [biggrin]
Kano
Mobile Mortgage
Member
@mobile-mortgage
Join Date: 2003
Post Count: 913
November 9, 2004 - 4:01 pm
Commercial Low Doc finance is also available, LVR around 65% and with higher rates.
Regards
Steven
Mortgage Broker
[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIA
PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Calder
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@calder
Join Date: 2003
Post Count: 44
November 10, 2004 - 9:23 am
Hi
I am not a broker, and I know it is not relevant to your question, but just a note on buying commercial. Before you go ahead, make sure that you can get a loan for the property, and insurance. I leant the hard way (because of the type of business in the property I was buying). I was starting small, and found so many obstacles because the tenent was a second hand dealer. The property was/is cash flow +ve.
Good luck. I haven’t given up on commercial. It was good training. I am just a lot more careful in my looking.
debtdogg
Member
@debtdogg
Join Date: 2004
Post Count: 136
November 11, 2004 - 8:59 am
Hi Calder
What was wrong with the second hand dealer?? Did he not pay or was there a problem with the finance because of this
markk
Happy Hunting
http://www.kentscollections.com
Calder
Participant
@calder
Join Date: 2003
Post Count: 44
November 12, 2004 - 2:08 am
Hi fewster
The property was cash flow +ve, the business had been there for years. 1st problem was getting the loan – 2nd hand business was considered risky. Even though we were buying the property, not the business, it made no difference. The 2nd problem was the insurance. Many insurance companies considered it a high risk business, and it is company policy that they do not insure these type of businesses, or properties in which these type of business are run. Would not give me reasons why not, just kept repeating, not company policy.