Commercial versus residential investment

Areas of finance:

• Refinance of existing facilities to allow equity release and better rates
• First and Second mortgage finance
• Investment properties
• Owner occupied properties
• Hotels & motels
• Office blocks
• Warehouses and factories
• Shopping centres
• Retirement villages
• Rest homes
• Education facilities (child care)
• Refurbishments

Specifications*:

• Minimum Loan: $100,000
• Maximum Loan: $20,000,000
• Term: a few months to long term
• LVR - up to 85%, (well leased on a long term basis), 100% financing of purchase price in certain circumstances
  • LVR 85%: Commercial Tenanted over 80% Occupancy
  • LVR 67%: Commercial Tenanted under 80% Occupancy
• Minimum cash equity is normally 20%
• Fixed and/or floating interest rates
• Interest only or principle & interest repayments

Costs*: (these are industry standards)

• Interest Rates:
  • 1st mortgage: current floating rates to 12%
  • 2nd mortgage: range from 12% to 18.5%
• Lender Fees: range from 0.3% to 4%
• Legal Costs: vary upon financier and your solicitor

The exact interest rate depends on the market conditions, strength of the securities and the credit risk associated with the application and the applicant.