Looking for a Great Commercial Property Loan? Many clients enter into the purchase of a commercial property unaware of how difficult and expensive lenders can be in 4 areas. These are: 1. Interest rate – most lenders charge a higher rate for the perceived higher risk 2. Re-Valuations – it is common for lenders to require revaluations of Commercial properties at owner’s expense every 3 years. 3. Policy revisions – many clients have borrowed funds subject to certain criteria, only to find the rules have changed. Common examples of this is where the Loan/ security ratios were based on (say) 70% and have been dropped to 60% or 65%. 4. Reviews – Many clients hate the prospect of having to provide the lender their financials every year for a stand-alone facility. For clients purchasing or holding commercial property the ING Lease doc product solves all these issues. We summarise the policy below: General Description: The ING DIRECT Lease Doc product is designed for investors with rental producing properties. The Lease Doc product provides you with the flexibility of choosing between the Commercial Variable/ Fixed Rate and Equity Loan products without the necessity to provide financials or tax returns. Target Market: Professional Investors Key Benefits - No financials or tax returns required - Generally a set and forget type facility - No ongoing fees or charges - Low commitment fee - Repayment flexibility Loan Purpose: The purchase or refinance of commercial property - Investment Properties only - Owner occupied not permitted Eligible Borrowers: Personal, company and trust borrowers Loan Term: Up to 5 years Repayment Type - Principal and Interest or Interest Only (maximum period 5 years) Current Interest Rate @ 8th July 2013: between 6.03% and 6.18% depending on loan amounts LVR Maximum 60% LVR Security - Registered first mortgage - Non specialised commercial (Retail, industrial, office, residential) in major metro areas - Lending outside Capital Cities is considered on a case-by-case basis Serviceability - Based upon security properties rental income only - Registered lease (arm’s length) with a minimum of 2 years remaining plus a minimum of 3 years option period - “Stand alone” Interest cover of 1.30 times
Posted on: Wed, 10 Jul 2013 02:52:46 +0000
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