75% LVR Commercial Loan

75% LVR commercial loan

Commercial loans to 75% LVR exist with a small number of lenders and financial institutions in Australia. This high LVR commercial loan policy comes as a surprise when explained to a borrower seeking a commercial property loan. Best of all, having a high LVR (loan to valuation ratio) on a commercial property allows a borrower to a high LVR without the need to bring any other additional property.

What is the maximum loan amount permitted for a 75% LVR commercial loan?

The maximum loan one can get using at 75% LVR commercial property loan is $4,000,000. Hence, this can be secured by a commercial property worth up to $5,333,000.

What types of lenders lend to 75% LVR commercial loan?

There are a handful of lenders who lend at 75% LVR commercial loan. These include:

1. Finance companies
2. Banks
3. Non bank lenders
4. Non conforming lenders

What types of properties can be used with a commercial loan at 75% LVR?

The properties acceptable with the lenders who do commercial loans at 75% LVR are any of the following:

1. Commercial property
2. Industrial property
3. Residential property
4. Retail
5. Office property
6. Commercial strata property

Can I get a commercial low doc loan at 75% LVR?

It is possible to get a commercial low doc loan at 75% LVR. There are only a very small number of lenders who will do this and they have their own specific criteria to make this type of loan fit their policy. The lenders will look at the borrowers’ credit history, time of employment, and overall ability to repay this loan at this high LVR loan without any hardship.

What loan types are available at 75% LVR commercial loan?

There are various loan types available for commercial loans at 75% LVR. These can include any combination of the following:

1. Interest only loan
2. Variable interest rate loan
3. Fixed interest rate loan
4. Line of credit
5. Overdraft
6. Commercial low doc loan
7. Commercial full doc loan
8. Commercial lite doc loan

What is the maximum loan term on a commercial loan at 75% LVR?

The maximum loan term on a commercial loan at 75% LVR is 25 years. This loan term is very generous when conducting, reviewing and considering the serviceability on a particular borrower. When a loan is serviced over a longer loan term, this increases the borrowing capacity of the borrower. As an example if a borrower was to have:

1. Income of $150,000 p.a.
2. Loan Term 15 years
3. Repayment type Principle and Interest (P&I)
4. Maximum borrowing capacity is $950,000

However, if the above example was to be serviced over 25 years, the borrowing capacity would increase to $1,210,000. The difference in this scenario would increase borrowing capacity by an additional $260,000!

Do I have to pay a higher interest rate for a 75% LVR commercial loan?

Some lenders who offer 75% LVR commercial loans do not charge a higher rate for this type of mortgage facility. However, there are also some lenders who do charge a slightly higher interest rate. When considering which lender to use, a borrower should consider the following factors:

1. The type of lender
2. Loan term
3. Possible annual reviews if they are applicable
4. Borrowing capacity differences between lenders

At Mortgage Providers, we know which lenders offer commercial loans at 75% LVR. Further, we know which lenders offer the most flexible loan terms at the cheapest rates with an ability to go low doc if need be.