Commercial
and Investment
Lending Guidelines
Preferred loan size
• Minimum
$100,000
• Maximum $50 million
Purpose
• Investment,
debt consolidation, bridging,
refinancing and a wide
range of business purposes.
• All loans must be non-coded except where borrower is a company.
• Exclusion – construction loan for the development of a security
property.
Acceptable security
• Residential,
commercial, retail and
industrial real estate
in metropolitan, outer
metropolitan
areas and major regional
centres in all states.
• 1st mortgage only.
• 1st party mortgagor/borrower preferred.
• Directors’ guarantees to support company borrower.
• Group guarantees to support company borrowers where appropriate.
• Floating charge from company borrower may be required if security is
owner occupied.
• Some properties of a specialised nature eg. hotels, motels and retirement
villages are not acceptable security.
Serviceability • Criteria
for serviceability may
be seen as more flexible
than other lenders.
• Serviceability should be demonstrated and evidenced from one or more
of the following:
– Taxation returns
– PAYG statements
– Financial statements
– Cash flow projections
– External accountant assessment of borrower’s debt servicing capability
• For loans where repayment is to come from sale of the security property
or other identified and
acceptable sources, and
where regular cash flow
will not support borrowings,
interest capitalisation
for the term of the loan
may be considered.
• Income
Declaration
for loans up
to $2,000,000
and 70% LVR
Term Up to 5 years
Repayments • Loans
are offered on an interest
only basis with interest
payable monthly in advance.
• Principal repayments may be made during the term. Repayments other than
at maturity or as agreed
on approval will be subject
to prepayment fees.
Payment
• Interest
payments will be made via
the DDR direct debit system
to the lender’s nominated
bank account.
Insurance
• No mortgage
insurance required.
• Title insurance applies on all loans to $2m.
Redraw facility
Preferred loan size • Minimum
$250,000 Establishment
fee from 0.55%
• Maximum $5,000,000
Purpose
• Business
or investment purposes.
• Must be non-coded except where borrower is a company.
• A statement of purpose demonstrating the need for and likely usage pattern
for redraw facility as
opposed to fully drawn
loan is required. This
facility is not intended
to replace a cheque account
facility.
Term 2 – 5
years
• Reduction in facility limit other than at maturity or as agreed on approval
will be subject to
prepayment fees.
• Payment and Interest
payments will be made via
the DDR direct debit system
from the borrower’s
account to the
redraw requests lender’s
nominated bank account.
• Redraw requests will only be credited to the borrower’s same nominated
bank account.
• Drawdown and Unlimited
drawdowns and repayments
permitted. Minimum amount
$5,000.
repayments • Redraws
via a redraw request form.
• Repayments by cheque only payable to Challenger Howard Mortgage Fund.
Security
• As per
standard fully drawn loan
product.
Serviceability
• As
per standard fully drawn
loan product.
Insurance
• No mortgage
insurance required.
• Title insurance applies on all loans to $2m.
6462/1207
Loan ratios
(Up to) *2. Major Eastern
Seaboard/Outer
*1.
Capital Cities Regional
Centres Metropolitan/Regional
Areas
CMV% CMV% CMV%
Property Type (Current
Market Value) (Current
Market Value) (Current
Market Value)
Residential – Luxury
65 65 60
Residential Other 75 70
65
Commercial 75 70 65
Commercial – Strata
75 70 –
Industrial – Owner
Occupied/Leased 75 70 65
Industrial Strata 75 70
65
Retail (non strata) – Owner
Occupied/Leased 75 70 65
Retail – Strata 75
70 –
Land – Residential
(sole suburban blocks)
60 60 50
Land – Commercial/Industrial
50 50 –
Land – Other – – –
Other
Childcare Centres (purpose
built) 60 60 –
Childcare Centres (not
purpose built) 70 70 –
Service Stations (Clear
EPA Report) 60 60 –
Sepp 5 (unique to NSW – Developers
Stock Only) 70 70 –
Residual Stock Loans
– units/townhouses/commercial/industrial 65 65 –
*1. Capital Cities = Metropolitan
areas of all State and
Territory Capital Cities.
*2. Major Regional Centres
= Wollongong, Newcastle,
NSW Central Coast, Mornington
Peninsula, Geelong, Gold
Coast and Sunshine Coast.
Note: Maximum LVR of 70%
for Self Certification
loans to $2m.
For more information contact
our lending team:
Contact BG Homeloans on
1300 361 971 or call Grant
Hawkswell on 0414581304
or Michael Karam on 0410
566 245 or just
email grant@bghomeloans.com.au |