hey everyone, im at my wits end with tryin to find finance for commercial property
zippys, most commercial property can be purchased on a 30% deposit – so for the above you will need $60’000 deposit plus costs – maybe another $10’000 to complete.
alternatively you may put up other security you have, like residential property – so unless you can come up with this you may just have to stay at ‘wits end’.
cheers
brahms
CALL NOW…adults only (boys and girls ask mummy or dad first) ~~ 1900 hot broker ~~Originally posted by brahms:zippys, most commercial property can be purchased on a 30% deposit
This was my understanding also, without using cross collateralisation of other properties or creative financing.
In a previous thread however, Simon believes it is possible to get upto 95% on commercial property. You should possibly contact him (Mortgage Hunter)
Other forms of alternative financing are vendor finance, using a partner, mezzanine finance, unsecured credit (eg credit cards or overdraft), family loans and so on. Normally when you stray from the norm the interest costs are considerably higher.
If the deal is good and you are able to secure a contract on the property you may be able to flip the property prior to or shortly after settlement and get yourself a small quick profit.
Cheers
Jeff95% – stand alone commercial?
cheers
brahms
CALL NOW…adults only (boys and girls ask mummy or dad first) ~~ 1900 hot broker ~~I think Derivex was offering 95% for commerical???
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | 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
hmmmm, i understand now, zippys you should look for an agent of ‘D” to solve all your woes.
cheers
brahms
CALL NOW…adults only (boys and girls ask mummy or daddy first) ~~ 1900 HOT BROKER ~~what do you mean brahms?????
duh ‘D’
cheers
brahms
CALL NOW…adults only (boys and girls ask mummy or daddy first) ~~ 1900 HOT BROKER ~~sorry brahms, i dont know what D stands for, i know i might sound like an idiot but its better to be honest!!!!!!!!!!!!!!
Hi Zippys,
You’re not the one looking like an idiot[biggrin]
I think Brahms is referring to Derivex when he/she types ‘D’. Who knows, except Brahms.[confused2]
Brahms posts are usually cryptic, critical, or just plain crap. [thumbsdownanim
I really don’t know why he/she bothers.
Regards,Sharon
hey sharon/shaztaz, thanks for that, its people like you that everyone wants to hear from on this forum, il be looking for you sharon to help you out in any way i can thanks HEAPS!!!!!
Hi Zippys,
I too am looking for a small commercial loan on a property worth 220k. I have spoken to a few brokers, and the lenders that always get mentioned are ING and IMB. Some brokers tell me that ING won’t finance anything below 300k, others say that if I refinance my home loan with them they will do the commercial loan with it. They are advertising 7.3% variable, 7.55% 5yr fixed, less .05% if you pay interest in advance.
I was told that IMB will look at a smaller commercial loan. Variable rate was around 7.5%. 3yr fixed was around 7.65% or thereabouts. The broker told me that because it’s such a small loan he gets no commission from IMB and he would have to charge me a brokerage fee of .75% of loan amount.
The other thing you could try is the Public Trustees Dept. They do 7.5% 3 yr fixed and 7.65% 5 yr fixed. Do a google search you should find them.
Hope this helps. Let me know how you go.
Eeshole
Hi All
whatever happened to Derivex? Or am I just not around enough?
[biggrin]toni89,
This is from Derivex’s website:
Consumer Home Loans are not currently available in Australia.
Derivex/IFHL will not receive or process any new
applications for consumer
Interest Free Home Loansâ„¢
until an independent
expert assessment of the
new consumer home loan
product has been completed
for regulatory and public reviewThis “review” was being discussed over a month ago. I haven’t heard anything since.
Anyone else hear anything about them?
Originally posted by eeshole:
I too am looking for a small commercial loan on a property worth 220k. I have spoken to a few brokers, and the lenders that always get mentioned are ING and IMB. Some brokers tell me that ING won’t finance anything below 300k, others say that if I refinance my home loan with them they will do the commercial loan with it. They are advertising 7.3% variable, 7.55% 5yr fixed, less .05% if you pay interest in advance.I was told that IMB will look at a smaller commercial loan. Variable rate was around 7.5%. 3yr fixed was around 7.65% or thereabouts. The broker told me that because it’s such a small loan he gets no commission from IMB and he would have to charge me a brokerage fee of .75% of loan amount.
The other thing you could try is the Public Trustees Dept. They do 7.5% 3 yr fixed and 7.65% 5 yr fixed. Do a google search you should find them.
Sorry for asking again eeshole, but are you not only 16 years old?? [blink]
Originally posted by shaztaz:Hi Zippys,
You’re not the one looking like an idiot[biggrin]
I think Brahms is referring to Derivex when he/she types ‘D’. Who knows, except Brahms.[confused2]
Brahms posts are usually cryptic, critical, or just plain crap. [thumbsdownanim
I really don’t know why he/she bothers.
Regards,Sharon
Sharon,
I think it best not to judge a man you don’t know (btw, he is male) albeit a tad on the cryptic side at times, his posts have been very helpful to many people. He has a warped sense of humour at times (as do I on occasions) but take it from me, the man is very knowledgeable and you would do well to heed some of his advice.
Cheers,
Jo
Many lender do Commercial loans <$200K Orix for example start at $50,000.
Interest rates vary as do application fees however the smaller loans are less attractive for a lender than a larger loan and subsequently they charge a higher application fee propertional to the loan size.
The problem with the smaller loans are that the lenders are wanting a minimum of 20% and more like 25%+ deposit.
Cheers Richard
richard at castlewhite.com.au
There is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Qlds007, thanks for the reply. I’ll try Orix.
A broker told me apparently Suncorp will do smaller loans too. Rates are quite high though.
Monopoly, why do you think I’m only 16? That’s probably my mental age, but I can tell you it’s been a looooooong time since I was remotely close to 16.
Sometimes I wish I was 16 again.
For anyone else looking for commercial loans, you can try the Public Trustee – http://www.pt.nsw.gov.au. I spoke to the guy that runs the commercial mortgages division, he’s quite a nice guy, helpful too. The good thing about their product is you pay quarterly in arrears.
Regards,
eeshole
Originally posted by eeshole:
Monopoly, why do you think I’m only 16? That’s probably my mental age, but I can tell you it’s been a looooooong time since I was remotely close to 16.Sometimes I wish I was 16 again.
Sorry eeshole, but you were the one who said it in one of your earlier posts, and there was no mention of it being your “mental age” hence the only other thing I could assume was that it was a reference to your chronological age!!!
Oh well there you go. Must be this forum, it seems to be attracting alot of 16 and 17 year olds (mentally at least) [biggrin]
Cheers,
Jo
Monopoly, I honestly don’t remember ever saying I was 16 (well at least not in the last 19 years or so). I think you might have mistaken a post from someone else.
Never mind. Sorry if I did suggest it inadvertently. My wife would agree with the mental age bit.
Back to the subject, it seems Westpac has reasonable commercial fixed rates, and they don’t mind the smaller amounts (they are probably friendlier to existing customers). A broker suggested Suncorp as well.
It looks like all lenders are increasing rates in line with the RBA’s .25% increase. Many of them still quote the old rates on their websites, but from what I can gather the rate rise will definitely apply for any loans currently going through the application process.
Would like to get people’s opinions on where rates are heading from here. Fix for 5 years at slightly higher rate? Or stick with variable and take the gamble?
Regards,
eeshole
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