Commercial Loan - Which Bank

Could someone tell me which banks will use a valuation that has been based on the building being tenanted? rather than the building being vacant.

Also which of these banks have the lowest fixed interest rates?

Questions to general, need to know:
1. need to know a bit abt the deal ( no point saying CBA etc...if they don't touch your deal)
2. LVR?
3. Loan amount
4. Location ( just postcode is fine)
5. Type of transaction- Investment or self uses? ( ie will you be running the business or renting the premises out?)

These are the basic 5 questions.

Regards
Michael

Michael Chan ----- Finance (Mortgage/Commercial) Broker----
Michael@Shapehomeloans.com.au | 1300 SH LOAN | 1300 74 5626 | Fax: 02 8212 8909|
Same Bank. Better Rates. Served With A Passion.

Shape

2. 70% LVR

3. $850k less 30%, loan amount $595k

4. 4217

5. investment, tenants already in place

Question 1 is probably the most imporant :)
What sort of deal is it? Boarding house? Bakery? warehouse? farm? etc....

----

Generally speaking; ( the list changes quite a bit depending on lender)

----Easier----
Car park
Aged care
Child care
Motel/Hotel ( under 25 units)
Pubs
Car work shop
Offices ( location dependent)
Taxi plate
Management right
Shop front ( zoning conditions)
Mixed zone
Boarding house ( can be part of residential as well)
Muti residential accommodation
Block of units > 12 ( under 12 it's still residential lending with some)
Rent roll
Pharmacy

---Hardier----
Private hospital
Supermarket
Private school
Rural area ( population under 10,000)
Farm
Vet
Brothel
Clubs
New business- start up ( depending on exp)
Shopping center

Michael Chan ----- Finance (Mortgage/Commercial) Broker----
Michael@Shapehomeloans.com.au | 1300 SH LOAN | 1300 74 5626 | Fax: 02 8212 8909|
Same Bank. Better Rates. Served With A Passion.

Industrial,

I own the property and want to refinance, but I know some banks will look at it as vacant and others will look at it as being tenanted - the property is tenanted for about 2 more years with further options and in this case the valuation is higher as being tenanted, there for want to use a bank that will look at it as being tenanted.

Hi Keiko,

If you have a tenant in already, and a lease in place, they will (should!) take this into account when the commercial valuation is done. In most case they would use a professional 'panel valuer' for a commercial property, but even if not, the rental on an existing tenancy lease will be taken into account.
All the best with the refi.

Cheers

Spoken to a commercial valuer, with most Industrial factory they will value it as vacant due to high vacancy rate due to the recent QLD floods.....however some valuers will still consider as tenanted if:

1. you have a 5x5 renewing lease or more
2. Solid tenant ie the tenant is a franchise and has a well known brand but most importantly also needs a min 5 years continue lease from valuation date.

Also on a 70% LVR refinance for a Industrial is def possible because of your location 4217 is an prem area for commercial deals..

Regards
Michael

Michael Chan ----- Finance (Mortgage/Commercial) Broker----
Michael@Shapehomeloans.com.au | 1300 SH LOAN | 1300 74 5626 | Fax: 02 8212 8909|
Same Bank. Better Rates. Served With A Passion.

Hi Shape, I have a valuation which was done by a major valuer which most banks use and the valuer did the valuation based on it being tenanted, but one bank has told me they will not give me 70% of this valuation figure as they only look at vacant valuation figures.
There for they want to trim up my valuation, which really means I mite end up with 60% LVR
So what I am looking for is the names of banks that will give me 70% of the valuation that has been done based on it being tenanted.

There's a few that will do it...a matter of choosing the right lender; me giving you a list of lenders will not help you as
1. Some of them only deal with brokers ( whole sale funding....)
2. You may not fit their criteria, so chance of rejection can be high if you dont know their policy + too many credit hit will not help your case

Example; one of the bank that may be able to do this is NAB commercial; however one of the issue is they normally use their internal valuers; so the valuation you have is invalid...

Now if you chose to go with one of the lenders that will accept your valuation the rate may be higher or application fee etc...

So a balancing act of finding the right lender + right deal.

Regards
Michael

Michael Chan ----- Finance (Mortgage/Commercial) Broker----
Michael@Shapehomeloans.com.au | 1300 SH LOAN | 1300 74 5626 | Fax: 02 8212 8909|
Same Bank. Better Rates. Served With A Passion.

Cool, I do have a broker but wanted to find out which banks would take on this valuation and what there interest rates are before I go back to see him so I have better fireing power.

The big 4 bank's commercial department has been quite flexible in the last 4 month, so they would be my first contact.

Regards
Michael

Michael Chan ----- Finance (Mortgage/Commercial) Broker----
Michael@Shapehomeloans.com.au | 1300 SH LOAN | 1300 74 5626 | Fax: 02 8212 8909|
Same Bank. Better Rates. Served With A Passion.

Thanks

Can you ask your valuer which bank panels he's approved with ?
cheers
thecrest

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