need a hand from all mortgage brokers in this website. I was wondering is there anybody out there that lends up to 100% LVR for commercial property situated in Hunter Valley region? And if there is, what is the roughly interest rate?
also, what happens if the independent valuation suggest that 70% of commercial property value equals to 100% LVR of asked price, will there be any lender that will go ahead with it?>
BTW, does that theory extends to residential properties as well..
Cheers
johnWant to join financial independence before 31 years old, currently 25
Also, is it possible to take out mortgage insurance to ensure that bank lends up to 95% LVR of commercial property? If that is possible, what % of mortgage is the mortgage insurance?
Cheers
johnWant to join financial independence before 31 years old, currently 25
NOT A BROKES – JUST A BORROWER
From my experience.
Banks prefer residential, and lend the most on them.
Commercial is around 65%
Rural 50%
I have all three, for various reasons, but reseidential is the safest for you and the banks.You wont find a lender who will give you 100% finance for comercial property unless you have other security to offer.
Simon Macks
Interest Free Home Loan Agent
[email protected]
0425 228 985Please email me rather than using the PM service here.
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Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Lenders will only lend on the lower of valuation or contrat price. So if your commercial lender will lend 70% based on a $100,000 purchase price, and the valuation comes in low at $70,000, then first you will have to ask yourself “am I being ripped off?”, and then have to decide if it will work at the loan would be only 70% of $70,000 = $49,000
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Try http://www.araf.com.au. They go to a higher LVR and lend for commercial in regional areas.
There are a few lenders who do up to 75-85% LVR but will usually only want city properties.
No LMI available on commercial property loans.
If the numbers on the property still stack up as Terry says, try to top up the commercial security with resi if you have access to it (self, parents, friend).
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