Industrial Property

What can I borrow?

• Where you are buying an industrial freehold property your loan to value ratio is limited to 81% of the value of the property, unless you offer a guarantor or offer residential security, which increases your LVR to 100%of the value of the property.
• Loan terms are limited to a maximum of 25 years.
• Some lenders will allow you to borrow under a low doc loan

The LVR for industrial property loans can vary from lender to lender. We can get the following LVR for stand-alone security using industrial property

• 85% LVR
• 80% LVR
• 75% LVR
• 70% LVR
• 65% LVR

• You will need to show that the proposed income will be enough to cover the interest expenses on the loan by at least 1.00 to 1.5 times.
• You’ll need to give evidence that you can service the loan (where you are purchasing freehold), by showing that have a strong financial position and stable income
• Where you are purchasing the property to operate your business from, you will need to show Business activity statements, tax portal printouts and bank statements for all your business accounts.
• You will also need to a business plan detailing your forecast of the business’ cash-flow whilst addressing location choice and business competition

• Banks will consider your overall financial position (that is your assets compared to debts).
• Banks will also look at how much experience you have managing a similar sized business.

Depending on whether you are purchasing the warehouse for development purposes you can provide:

• Registered mortgage
• General Security Agreement or GSA
• Guarantees from the directors
• Rights over intellectual property

For a free assessment enquire online today or call us on 1300 656 600 .