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Major bank offers brokers financial incentive

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Australian Broker | 16 Jul 2012, 06:40 AM Agree 0
A major bank has launched an offer which will act as a financial incentive scheme encouraging brokers to write more commercial loans
  • BJ | 16 Jul 2012, 10:50 AM Agree 0
    How wonderful!
    What would really incentivize is to be in a position to actualy get deals through. By way of example a $13.5m deal, gearing to max 60% across three properties, residential, and commercial with NET income of $1.6M, lease weighting of 4.25 years 6 tenancies could not be placed. Oh, and to sweeten the deal interest paid in advance at settlement and P&I on $8M.
    Yep lenders are falling over themselves for the business.
    I forgot to mention the lender would do it at 50% LVR. When asked why. "the bank is just not up for it as you have a concentration of commercial assets in Brisbane and Sydney plus previous issues with the past owner ". Past owner?
    A tuff market is about to get even more so.
  • Albowski | 16 Jul 2012, 05:44 PM Agree 0
    The commercial financing market has always been tough but seems beyond the realms of possibilites now, I do not envy commercial brokers who do so much hard work to get a deal that works and then satisfying policies that changes with the wind - no joy! But yet they want to write your deals, has any broker got a deal set with any commercial funder in the last 12-18 mths that doesnt tie the borrowers gonads up so tight that they cant pee, also at a great 50% lvr with multiple securities and 250% debt coverage? Love their incentives, sounds like the pot of gold at the end of a rainbow!
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