Max LVR on Commercial Finance

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woodsman
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@woodsman
Join Date: 2004
Post Count: 714
May 31, 2004 - 9:29 am
In the process of examining commercial property’s viability as an investment currently.
What is the maximum LVR in the market for CP’s?
Is serviceability more stringent compared with residential?
I would be purchasing in Melbourne metro. Are different postocdes treated differently, or does the lender look at the quality of the building/tenant?
James
wilandel
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@wilandel
Join Date: 2003
Post Count: 761
May 31, 2004 - 11:24 am
Hi James,
I’m not a mortage broker, so I can only give you a general answer.
With commercial loans I believe the maximum LVR is 70%.
We did find that for the area that ours is in, (a Vic. regional town) there were not that many smaller lenders that would lend for commercial finance there, however they would lend there for residential.
The lender will look at how strong the lease is.
Good luck,
Del [biggrin]
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
May 31, 2004 - 12:20 pm
It is generally around 70 to 75% LVR, but you may be able to get 80% using a second mortgage.
Citibank have a good product where they will assess the application on the rental income only of the property.
Terryw
Discover Home Loans
North Sydney
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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woodsman
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@woodsman
Join Date: 2004
Post Count: 714
May 31, 2004 - 10:41 pm
Thanks Del & Terry
James