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Commercial Real Estate Loans

Aug 6, 2008
WHAT IS A MORTGAGE ORIGINATOR? A Mortgage Originator organises and negotiates funding for home owners and property investors (residential, commercial, industrial and retail) from a variety of funding sources. Settlers Home Loans Pty Ltd is such a mortgage originator. Mortgage Originators act to introduce a borrower to the lender that in the originator's opinion offers the best product for the specific needs of the borrower.We offer commercial loans internationally.

What precautions should I take? Be aware of the meaning of Loan to Value. The greater the LTV the riskier the loan, other things being equal, LTV is the percentage of the loan or loans to the value of the property. Thus an $80,000 loan against a property worth $100,000 has an 80% LTV. The least risky loans are to homeowners, followed by second homes, rental properties, commercial properties, then vacant land.Generally, the LCM Fund is financing residential property at less than 80% loan-to-value and commercial property at less than 65%. LCM underwrites all loans with as much rigor as required to determine collateral value, insurance, credit and title history. Typically, the process is the same as that of leading institutional lenders. We control risk through consistent lending practices.

Do Brokers only do Residential Mortgage? Brokers can place all types of loans provided they are backed by mortgage collateral. All sizes of loans, from small loans backed by a residential property to commercial properties in the millions of dollars, are readily available. Mortgage-backed loans in the millions are not uncommon with private pension funds and private lenders.

What kind of credit do I need in order to qualify for a commercial loan? If you were to deal directly with a bank or other type of financial institution, that institution may have a set requirement for a particular credit score or credit profile that you may be required to have. However, with most commercial loans that are brokered, the credit is not one of the first considerations in qualifying you for a commercial loan. The first consideration is the property type. The second is the income of the property.You can get loans on mobile homes, commercial properties - mixed use (residential/commercial), farms, grocery stores, repair shops, rental properties (commercial rental properties with any number of units, residential rental property with no more than 6 units), etc.

Will I be required to buy Environmental Insurance? Environmental Insurance is, unfortunately, a requirement for most commercial loans. However, the insurance cost should be minimal if your property is not known for environmental hazards. For example, an office complex would have a much lower premium for environmental insurance than a gas station.You can get loans on mobile homes, commercial properties - mixed use (residential/commercial), farms, grocery stores, repair shops, rental properties (commercial rental properties with any number of units, residential rental property with no more than 6 units), etc.Generally, the LCM Fund is financing residential property at less than 80% loan-to-value and commercial property at less than 65%.

Where do you lend funds to? Dorchester Finance Limited has three main areas of lending. The first is larger commercial type loans from $50,000. These are mostly secured on first and second mortgages over properties. The borrowers are many different enterprises covering the commercial, industrial and property sectors in NZ. Dorchester Finance also has subsidiaries which are active in the motor vehicle hire purchase business and also act as brokers in this industry.Loans are priced based on delivery. A loan that will close in 10 days will be better priced than a loan that would close in 60 or 90 days, due to the uncertainty of interest rates. We can lock in your loan and guaranty it until closing based on commitments issued by some of the largest mortgage lenders in the country.
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