Commercial property loan tips

Got specific questions? Feel free to contact us for a confidential discussion.

Get the best loan possible over each property AND create capacity to move quickly on new opportunities.
Investors holding a property portfolio in excess of $25million rarely gear themselves over 60% LVR. They value their free cashflow and are not vulnerable to sharp rises in interest rates. They rarely sell assets - thereby "avoiding" Capital Gain Tax.
Focus on the asset first, and then takes sensible decisions on security required. This will streamline the credit approval and mean less time wasted.
Non bank institutions lend from depositor funds rather than borrowing and on-lending. This delivers more flexibility and lower base interest rates.
Seek a funder where there are no yearly reviews and intrusive bank manager.

Reduce the influence a single lender can have over your business
Ensure only the minimum security required is given to a funder
Allow yourself to move quickly to acquire new opportunities when they arise in the market
Reducing your reliance on a single third party

Give only the security required - not all the security available.
Do not provide your own residence as security unless absolutely necessary.
Give only "limited guarantees" where possible - not "all money" guarantees. Ensure a bank doesn't have a back door to hold security far in excess of what is required.

Experienced developers don't focus solely on price - certainty of receiving the loan facility and simplicity of loan operation is key..
Agree a clear path to accessing progress payments (and dispute resolution). This is a key area during the project
If possible, split a construction loan into two parts - (1) investment loan, and (2) construction loan. There is a price advantage by drawing under an investment loan. Ask us how!

Join the ranks of commercial property investors across Australia who source their loans from Metfund. Contact us to compare your loan or get a Quick Time Quote® to get you started.