4 Things to Consider When Fixing Your Interest Rate

WHEN INVESTING IN Commercial property, one of the major attractions for investors is the cashflow available. And locking in a guaranteed cashflow, via fixing your loan can be an attractive strategy.

However, there are a number of things that should be considered, before deciding to fix your interest rate. Here are some of the most important questions to ask yourself when deciding. [Read more…]

How The Royal Commission Will Affect Bank Lending


SINCE DECEMBER of last year, the Federal Government has been conducting a Royal Commission into the banking industry, as well as financial and superannuation services in general.

Some areas covered so far (relating to lending practices) have included commission structures for brokers and staff, as well as cash incentives being offered by banks. [Read more…]

Tenancies, Leases, Business Types … How They Relate To Your Loan Applications

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IN COMPARISON to the residential market, lending applications for commercial investment loans require a far greater scrutiny on the reliability of income from the property itself, often more so than that placed on the actual borrower.  [Read more…]

Commercial Loans With No Financials – Is It Possible?

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TRADITIONALLY, for any business or commercial loan, most lenders will require at least two year’s past tax returns and financials to establish servicing capacity.

For some borrowers, this is either not desirable or not possible. And so, here is a summary of several loans that could be available for such a borrower; plus how those loans may also apply to you, as a commercial investor. [Read more…]

4 Steps to Finding Your Ideal Commercial Finance Facility

IN MY EXPERIENCE, most seasoned property investors seem to have a good idea of how to structure a home loan and what to look for.

However, the complexities of commercial property and the wide array of commercial loan products mean it can be a little more difficult for commercial investors. [Read more…]

Using Your Self-Managed Super Fund for Investment Without SMSF Borrowing

SINCE THE Superannuation Industry Supervision Act was amended in 2007 to allow superannuation funds to borrow against property, Self-Managed Super Funds have become a popular vehicle for investing in property — in particular, for self-employed borrowers or those in transition to retirement phase.

However, the loan products associated with this type of lending can be onerous and restrictive and this makes this form of lending far from preferable for many borrowers. [Read more…]

5 Ways to Maximise Your Borrowing Capacity

WITH BANKS having tightened up investment lending considerably, gaining access to money for active property investors has become increasingly difficult.

Here are several strategies to help you to get the greatest amount of borrowing capacity with your lenders.

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APRA Cracking Down on Commercial Property Investment Loans

AS MANY INVESTORS would already be aware, borrowing for investing in property has become increasingly difficult over the past 12 months.

And that's because APRA (the banking regulator) has issued a warning to major banks to reduce their exposure to investment property loans.

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Recent Changes to the Lending Environment

THE CURRENT LENDING environment has changed markedly over the last two months with the main developments being:

  1. Lending to foreign investors has been severely restricted or entirely removed by all Australian banks.
  2. Interest Rates have been cut, with the drop passed on for owner-occupied loans and partially passed on for investment loans.
  3. Concerns have been raised about housing oversupply in certain parts of the country, including Melbourne and Sydney, and lenders have placed increased restrictions on higher density developments. 
  4. Some banks have been advised that their loan books are too heavily weighted to property investment (including commercial) and have thus pulled back their lending ratios.
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Would You Like to be Paid a Bonus to Refinance?

A NUMBER OF YEARS AGO, in the early days of online casinos, some sharp individuals were able to make a quick dollar by taking advantage of "welcome bonuses" being offered in this new and competitive industry.

Taking Advantage of the System

Here is how it worked.

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APRA & Commercial Lending

Comm-Lending

WITH MORTGAGE LENDING at a high, RBA rates at an historical low, and competition within the lending industry extremely hot, a peculiar thing began to occur last month. Interest rates began to increase.

This was most profoundly evident with residential investment loans, with several of the majors increasing rates and reducing LVR limits for these loans. [Read more…]