Finance

A word from our Mortgage Broker

In the current environment we are seeing businesses either struggling, or growing at a rapid pace, there doesn’t seem to be much in between Consolidation seems to be gaining momentum, particularly in service based industries

It is not often I talk about lender policy in these emails, however, this week I was made aware of a policy being utilised by more than one bank, to assist both business owners, and aspiring business owners

If you are looking to buy a business, buy into a business, or simply buy a commercial premises to operate your business from, this policy may impact your ability to proceed.

100% LVR on residential property

If you are entering a commercial transaction and need to fund a shortfall on the transaction, you can now access the equity in your residential property equal to 100% of its value

Accessing equity on a residential property for commercial transactions was previously capped at 80% of the value

The shortfall may be the deposit on a commercial premises, or the gap between what can be secured against the assets of the business and what is needed

Example