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

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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…]

Buy Commercial Property Without Loan Guarantees

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WITH YIELDS ON commercial properties getting tighter, one way of achieving better yields is to pool with other investors to purchase a property that may be out of each individually.

Or in other words, form a property syndicate. [Read more…]

To Fix or Not to Fix Your Commercial Loan Rate?

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WITH BOTH SHORT AND LONGER term fixed rates currently at historical lows, discussions around fixing rates for commercial loans has increased markedly.

This article will focus on the major factors that should be taken into account when considering whether or not to fix a loan against a commercial investment property. [Read more…]

Do You Fully Understand Commercial Property Valuations?

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WHEN PURCHASING A COMMERCIAL PROPERTY, the valuation is a key element in the financing process and in providing the buyer with comfort in their purchase price.

For the wise investor, it is important to have some understanding of how valuations are conducted.

Doing so will establish confidence that the valuation will not pose an issue with finance and also act as a basic tool, to verify a purchase price or estimate asset value for existing properties. [Read more…]