Lender knockback

[Fixerupper]

Hi all
I have been stalking on here for a while now ,up untill now have been able to answer most of my questions by just searching archives and reading posts,but I have a question re: a lender (CBA have PPoR val $400 loan bal $150 + LOC $160 , +1 IP val$260Loan$272 )not forthcoming with finance"LOAN TO SMALL",Looking at purchase Commercial/res property, 1 month ongoing Lease, small town PP$285 Loan$199500,70% .Also NAB want longer lease"5 years",
need finance to exchange
Any suggestions appreciated
Thanks Damian

 

[Qlds007]

How small a town are you referring to?

Is the loan full doc or lodoc ?

What sort of security is the property?

This will go some way to ascertaining whether it can be funded at that lvr.

 

[Fixerupper]

Hi Qld007
Town size approx 3000 50kms to major regional city
Ful doc loan
the loans applied for are commercial secured by residential (the particular property is tenanted by retailer on the ground floor , with 5 bed 1 bath resi not rented 1st floor. Commercial tennant is not keen on fixing along term lease
because of "current financial conditions".
Thanks Damian

 

[Peter_Tersteeg]

In commercial property the banks want to see long term stability, so the term of the lease does weigh heavily into their decision. They also get nervous about small towns.

The tenant is concerned about the long term financial viability of doing business there. I'd suggest the bank is as well. Are you sure that this is a prudent investment?

 

[Fixerupper]

Hi PT
Thanks for advice ,Yes banks are concerned with long term stability,as I,Local CBA has come back and approved loan but I have decided not to go ahead as they require to much security and the new figures just don't stack up.
Thanks again.
Damian