Hi everyone,
Does anyone know what’s the highest lvr a bank will lend. Been looking through old posts and the answer varies from 65 to 80%. I’m guessing a 20% deposit for a commercial loan wouldn’t cut it?
Unless you secure it with residential property (ie cross it).
Yes it possibly would it will depend on the type of security.
Just settled one for a forum client on a retail shop which had a decent lease in place.
Course if it had been a vacant industrial unit you might had been looking at 65-65% lvr.
What type of security ?
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Richard and Scott. The commercial property will be a factory approx 300m2 in size. Around the $400k mark. Have about $400k in usable equity. I would be renting out the factory for the first 5 years and then moving in.
I’ve also heard commercial loans are much shorter then residential. Is this true?Hi Joe
To get the best interest rate, set up rates etc you would ideally want to keep the lvr to 70% for an interest only loan or 75% for principal & interest loans.
Probably get 20 / 25 year term with the right lender and no annual review.
Hope this helps.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
On a loan that size you may very well get 8% LVR. With regard to loan term, it will be shorter, but at least 15 years. The much shorter loan terms that are sometimes applicable are more common with much larger loans.
Qlds007 wrote:Hi JoeTo get the best interest rate, set up rates etc you would ideally want to keep the lvr to 70% for an interest only loan or 75% for principal & interest loans.
Probably get 20 / 25 year term with the right lender and no annual review.
Hope this helps.
Cheers
Yours in Finance
Hi Richard,
Thanks for reply. If all goes well I'll most likely be contacting you mid next year. Is it much harder to get a commercial loan compared to a residential / investment loan?
APerry wrote:On a loan that size you may very well get 8% LVR. With regard to loan term, it will be shorter, but at least 15 years. The much shorter loan terms that are sometimes applicable are more common with much larger loans.Hi Alistair,
I hope you really mean 80% other wise i'm buggered!!
Hi Joe
Yes Alistair means 80% lvr.
No not harder to get a Commercial loan but different choice of lenders.
Look forward to talking to you 2013.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
jmsrachel wrote:APerry wrote:On a loan that size you may very well get 8% LVR. With regard to loan term, it will be shorter, but at least 15 years. The much shorter loan terms that are sometimes applicable are more common with much larger loans.Hi Alistair,
I hope you really mean 80% other wise i'm buggered!!
Sorry, wireless keyboard seems to that to me all the time. It would be a difficult market place if you could only get 8% LVR
You must be logged in to reply to this topic. If you don't have an account, you can register here.
