Commercial loan: WHY?

hi Cabo Wabo
go to the nab or st george I have found them to be the best for resi lending at the moment if you want a bank lend.
yes the broker will have to repay his or her commission if the loan is held for under 12 months with most banks and you will have to look at your early discharge clauses as the will fine you also.
as for difference between resi and comm, comm is usually 1.5 to 2% higher
resi at the moment is around 5.99% nabconstruction loan and would be 7.5% as acomm
you need to talk to the broker all my lends are trusts with companies and haven’t had a problem but then I have done one thru westpac but do have westac bank accounts.
I mix up my lending so one doesn’t know what the other is doing
with one bank won’t name which one I have three loans and they are no doc ,low doc and full doc and three different bank managers(customer account manager) with the same bank and they don’t interchange information.and are not setup in the same areas.
could of other charges that you will pay with comm as a construction loan draw down around 770.00 each time,draw down inspections about 600.00 with resi (nab) free.
valuation of the property comm you pay 1200.00 resi free( all of these will be nab as its the last one I’ve done.)
(I have anz, suncorp,hsbc,nab, and three private lends)
I would try for a resi loan and also look at holding for longer check capital gaims problems that you may face.
usually its reno reval hold and resell unless you are going to use the old ppor and sell.
sorry to say this put you need a bit more homework on this one.
if I was going to reno and sell.
I would option the property, reno it sell the property when reno’d and do a deal with the owners.
this is a better alternative and will be more profitable check with an accountant and they will tell you the structure.

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Cabo, can only agree with above. Westpac do many things the hard way. It should be the security nature that determines where the application falls; consumer or commercial

Commercial security, whether it be an individual or corporate/trust borrower will be treated generally over a reduced term, 15-20yrs, with rates on average 0.5-1% higher than resi.

Also, some “trading” corporations may still be treated as commercial. If you have a large trading company, they will not always be entitled to receive traditional products even if it is a resi security. They are generally happy to entertain structures such as companies and individuals where they are trustees for a trust, when it’s for a property trust or property acquisition purposes.

I find CBA, Bankwest and ANZ very good to deal with, but ANZ dont offer their full suite of products (breakfree/prof pkg…). I’d suggest flick Westpac if you don’t want heart-ache!

Cheers,
Rob

Rob Whyte
Certified Mortgage Consultant MIAA

Principal & Licensee
The Mortgage Gallery
e [email protected]

Winner 2004 National Office of the Year!

Accredited with over 27 lenders nationally. 15 years experience in commercial and residential lending, ask me anything, if I dont know, I’ll find out!

Actually, I think i remember talking to someone at Westpac about this. I think the loan is just handled in a different section, and the conditions for these loans may, in fact, be the same as a residential deal.

Terryw
Discover Home Loans
Parramatta
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