Background
Our customer was purchasing a quality commercial property on the outskirts of Auckland. The property is well-maintained offering solid long-term tenancy potential for retail and commercial office.
Challenges
Despite months of preparation, the customer was unable to complete the purchase.
- Their application with their main bank was repeatedly delayed, with the customer being passed between teams and unable to obtain a clear credit decision.
- At the time of application, the rental income alone appeared insufficient to fully service the proposed loan.
With the property settlement deadline fast approaching, the customer was keen to secure a finance offer as soon as possible.
Mitigants
After their adviser approached us, we conducted a detailed credit assessment to understand the full picture and identified several positive factors:
- A good-quality security, in a good location
- Existing and projected tenancy mix supports the serviceability
- A solid overall financial position
Solution
Based on our credit assessment results, we were comfortable structuring a 15-year long term commercial property loan with a 5-year interest only period at 70% LVR.
Our comprehensive yet swift action enabled the customer to meet the finance deadline and move forward with their business plan.
LOAN AMOUNT
$770,000
INTEREST RATE
7.99% p.a.
TERM
15-year term with 5-year interest only
LVR
70%
ADVISER FEE
$2%
AVANTI FEE
2%
CASE STUDY - PROPERTY LENDING
Commercial Property Loan
Our Commercial Property Loan offers a flexible, long-term lending solution that makes borrowing more accessible and helps advisers better support customers with commercial property needs.
We provide loans of up to $4M in Auckland and $2M in other main centres, with terms ranging from 2 to 15 years and amortisation of up to 25 years. With a maximum LVR of 70% (GST exclusive, inclusive of fees), it’s a highly competitive option in the market.
If you’d like to workshop a client scenario, get in touch with your Avanti BDM.