What does Loan to Value Ratio (LVR) mean?
LVR is the percentage applied by the lender as the maximum possible loan amount (subject to acceptable loan servicing) against the acceptable security being offered for the loan e.g. if the valuation on the property is $1.0M and the lender applies a 60% LVR then the potential lend is $600,000
Will the lender take the purchase price in lieu of ordering a valuation?
Lenders will only lend against the lesser of the purchase price or an acceptable valuation report.
What will be the initial loan costs?
Costs vary between lenders. Generally, the loan establishment fee is approx 0.50% of the loan amount with other fees applied by the lender at cost e.g. valuation report, registration or discharge of mortgage, title search, GST and Stamp Duty.
How long before we receive the lender quotes on the deal?
Depending on how quickly you can provide us with the necessary deal information – we will generally have all lender quotations emailed back to you within 10 working days in a comprehensive Board Report.
When can settlement take place?
Settlement is governed, as applicable, by the terms of the Contract of Sale, the start date to construction finance, or an agreed settlement date on refinance or top-up loans.
What is the minimum loan amount ACS Financial Commercial Lending can process?
Generally $50,000 or above.
Can we get an Interest Only period included in the loan terms?
Lenders terms vary, but generally most will allow some initial interest only period of between 1 - 5 years depending on their assessment of the deal. This would be followed by Principal and Interest repayments with the overall loan term of up to 15 years.
Do lenders only offer variable rate loans?
No, lenders will offer option of variable, fixed or split loans.