Fixed Rates continue to race down.
Full doc variable rate is 5.88%pa.
Commercial Property Loans:
NEWS Bloomberg 6th May 2014
"More domestic banks said they eased standards on all three types of commercial real estate loans....: construction and land development loans, loans backed by nonresidential buildings and loans secured by multifamily residential structures" Federal Reserve survey. " The FOMC said in a statement after a two-day meeting that it’s likely to keep the benchmark interest rate close to zero for a “considerable time” after bond buying ends.". This is good news for Australian borrowers as no rapid change in rates are expected in the medium term.
No Doc Commercial Loan
No Doc Commercial Mortgage Loans to 65%LVR.
Absolutely no income figures included in self certification - a true No Doc Loan. These loans are targeted at landlords as the rent must cover interest repayments and there must be 2 years left on the lease. Must have a history of making loan payments on time - and not just most of the time!
Current Interest Rates. Our lenders variable interest rates usually move in parallel with changes in official interest rates.
Great Features: 15-20 year term as maximum (with an optional interest only period)
Location: cities and regional centres with a population greater than 20,000.
For mainstream properties with a good resale value. No Vacant land or construction loans
With no half yearly administration fee. No monthly/annual account keeping fees, no big hurdles of major scheduled external loan reviews/rollovers, no company charges.
Easy Info : Main application details required are borrower / guarantor details, statement of assets and liabilities, property / purchase details.
Second type of No Doc loan (Simple Doc) for investors where the income from the property will service the loan
Lease Doc Commercial Loan to 60%LVR
This is especially useful for those seeking consolidate existing investment and personal debits. The source is bank lending and interest rates are lower then the previous product. it only requires rental evidence with minmum two years left on the lease.
Low Doc Commercial Loan to 75%LVR
Low Doc loans which requires details of bank statements and detailed assets and liabilities.
The lender will require evidence of financial capacity to service the loan. ABN must also be valid for at least 12+ months and GST registration for at least 12 months.
Low Doc – self certification of income.
Secured by either commercial or residential property, Commercial loans feature:
- up to 75% LVR
- a maximum loan term of 25 years
- principal & interest or interest only options
- no annual reviews
Commercial repayment options enable your customers to pay down their loan faster and in many cases, without penalty. Choose from:
- weekly, fortnightly or monthly repayment options
- unlimited extra repayments on variable rate loans. Free electronic redraw facility gives borrowers instant access to their voluntary extra repayments
- additional repayments up to $20,000 p.a. without penalty on fixed rate loans
A wide range of property accepted as security , including:
- commercial property (including offices)
- industrial property (including warehouses and workshops)
- retail property (including shops)
- residential property
They can be located in cities and regional towns having population > 100,000. Loans are available to both individuals and corporate entities – registered Australian companies, partnerships or trustee companies acting for a family, discretionary or unit trust. Loans may be for investment or owner-occupied purposes. Customers must have clear CRAA.; No Vacant land or construction loans
Full Doc commercial Loans: Commercial lending has improved significantly.
A commercial loan you can set and forget.
The lending conditions are as above. The additional documents required are the last 6 months business bank statements, BAS and last two years tax returns. The higher scrutiny is set off by a lower interest rate of 1.5%. The maximum LVR remains 75%. Large loans, say $3M+, the rates are negotiable. Construction loans are now available for multi unit developments. The loans are from institutions and private lenders.
Caveat Loans or short term loan
These are suited for those who face short term issues with settlement or consolidating finances.
Although the lenders charge 2%+ per month, in terms of getting out of the difficulty or using cost benefit analysis will indicate the suitability of this finance. These loans generally are for 3 to 12 months. The lender will require an exit strategy. They really are not interested in finding the borrower at the end of the period with a higher loan and property worth less because it has been on the market for long period.