The lending criteria set by us includes,
- All loans must be secured by a real property mortgage.
- All loans must be utilised for business or commercial purposes only.
- Generally, the maximum loan to valuation ratio is 85% of the secured property, or, in the case of construction/development loans, 85% of the total development cost or 75% of the gross realisation value.
- The minimum term is six months and the maximum term is five years, however, loans may be extended at the end of the term for a further period (subject to a new credit assessment and investors not electing to withdraw their investment).
Other parameters that we currently include in our lending criteria are as follows,
- The secured property must be non-specialised residential, commercial and industrial properties generally located in the eastern Australian states and in major capital cities or major regional areas with a population of greater than 25,000;
- Specialised freehold real estate security such as hotels, motels, hospitals, reception centres and child care centres may be considered on a case-by-case-basis;
- Progress payment construction first mortgages will also be considered on a case-by-case basis.
- Rural subdivision land is considered unsuitable security.
- Borrowers are required to provide evidence of their ability to service the loan.
- Replacement insurance is required.
Depending on our views as to market conditions, property market cycles and various other conditions, these parameters vary from time to time.
They may be changed by us without providing notification to you.