National and State
Award Winning Office
Commercial Acumen | [Tuesday, April 13, 2010] 
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Commercial Acumen | [Tuesday, April 13, 2010]  Commercial Acumen April/May 2010 Page Two of Two
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Commercial Mortgages | [Wednesday, July 15, 2009] Commercial mortgages – Good advice goes a long way Commercial mortgages are quite a different proposition from home loans, and an experienced mortgage broker can play a key role. A broad spectrum of commercial mortgages is available including fixed rate loans, line of credit options and plain vanilla ‘standard variable rate’ loans. Some lenders even offer a commercial offset mortgage which can be a real plus for making good use of surplus cash flow or managing GST collections. It is in the area of lending criteria that residential and commercial mortgages significantly diverge. In the residential credit arena there are clear cut rules that lenders will look at to determine the credit worthiness of an application. By contrast, in the commercial environment there is more scope to convince a lender that an application should be approved. This is one area, where having a broker on your side can boost your application’s success. Providing documentation of future income, long range forecasts, feasibility studies and a strong overall asset position can also go a long way to getting your application over the line. It’s worth noting that commercial mortgages typically require a substantial deposit – usually around 30% of the property’s value. This requires a greater upfront investment however a bigger deposit does offer some pluses. Among them, it means borrowers don’t have to worry about lenders mortgage insurance. In fact according to Gary Lees of Raine and Horne Financial Services – the broking arm of the Raine and Horne Property Group, it is rare to pay mortgage insurance on a commercial loan even in cases where the loan to value ration is above 70% (in other words your deposit is less than 30%). Gary Lees urges borrowers using a broker to source a commercial mortgage to check that their broker has commercial accreditation and experience. He says, “Commercial mortgage submissions can be complex and the structure of the loan plus the expertise with which the submission is prepared can make a significant difference to the success of an application.” Angus Raine – CEO of the Raine & Horne property group says, “Anyone thinking of investing in commercial property should ensure they only deal with agents who are both licensed and experiences in the commercial sector. It’s definitely a specialist area, and if you add a qualified commercial broker to your team, the odds of securing a quality property backed by a compelling commercial deal are considerably enhanced.”
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National Awards | [Tuesday, September 23, 2008] Raine and Horne Commercial Vic would like to congratulate Glyn Bosisto on achieving No 1 commercial salesperson for $ value of commission received/written in Australia. And to all staff for acheiving the No 3 ranked commercial office in Australia. A great effort from all. |
