Investment Property Purchase: Urgent Short Term Loans When the Bank Declines

It can. A loan of about $1,400,000, before stamp duty and costs, would repay the $700,000 and pay the $700,000 balance of the unit price. That is about 52% of the $2,700,000 the two properties are worth together, inside our 70% limit, subject to our valuation of each property. The amount owing may rise once the lender adds interest and its enforcement costs, so ask the lender for a written payout figure to your settlement date. Send it to us with the unit contract, and we can plan one settlement for both.

• →Receivership refinance

Yes. A first mortgage over the property the company is buying can secure our loan by itself, separate from the four properties the company's bank holds. The loan is up to 70% of that property's value or the price, whichever is lower. The rest of the price and the stamp duty come from the company's own funds. When the company refinances our loan, it can choose a different bank, so the fifth property stays outside its current bank's group.

It is not enough on those numbers. 70% of $900,000 is $630,000, which leaves $270,000 of the price to pay, plus stamp duty and costs, against the company's $150,000. The gap is about $120,000 before duty. Equity in another property the company or a director owns can cover it, with total borrowing on that property kept within 70% of its value.

• →Urgent short term loans for a settlement shortfall

Yes, on that unit alone. 70% of $330,000 is $231,000, and our smallest loan is $250,000. If the company adds another property it or a director owns as security, the loan can be $250,000 or more, as long as total borrowing stays within 70% of the combined value. For example, adding a property worth $500,000 with $200,000 owing gives room for up to $150,000 more.

Yes, as a lump sum paid at settlement. The whole loan, including the repairs, stays within 70% of the house's value or the price, whichever is lower, so up to $560,000 on an $800,000 house. That means $240,000 plus stamp duty comes from the company, with the $40,000 for repairs inside the $560,000. Send us the repair quotes with the contract.

By refinancing to a different bank or lender, or by selling one of the properties. A lender that has not yet lent to the company assesses the seventh property and the company's income on its own terms, and a broker can tell you which lenders are likely to consider it. We agree the plan with you before settlement and set the term to allow for it, up to 24 months. If the plan is a sale, choose which property early, so it is listed in time.

• →Bridging loans

We need to learn your scenario further. Our valuers review the strata records, the work under way and any levies, and value the apartment at what it would sell for today. The loan is based on that value or the price, whichever is lower. The company's repayment plan matters as much as the value. If the bank will not lend until the work is finished, the term needs to allow for that, so send us the strata report and the owners corporation's timetable for the work.

About 6 to 9 months is a sensible starting point. That covers the four months to March, then the bank's assessment and valuation once the returns are lodged, with some time spare. Our terms run from 1 to 24 months. Ask your accountant for a firm lodgement date, and ask the bank how long it takes to approve once the returns are in, so the term is based on real dates.

It counts in the valuation. We do not run a bank's serviceability calculation, so the granny flat's rent is not part of an income test. Our valuers value the whole property, house and granny flat together, and the loan is based on that value or the price, whichever is lower. Send both leases with the contract. A bank refinance later will look at the rent again, so ask your broker which banks count income from a second dwelling.

Yes. The company is the borrower, and a second mortgage over your home can add to the first mortgage over the unit, as long as total borrowing on your home stays within 70% of its value. For example, a home worth $1,200,000 with $500,000 owing has room for up to $340,000. Tell us what is owing on your home and to which lender, so we can work out the combined amount.

• →Second mortgage finance

It can be, where settling late would cost the company more than a month of interest. Our terms start from 1 month, and the bank's loan then repays ours once its documents are ready. Ask the bank to confirm in writing that its approval will still apply as a refinance after settlement, since it was assessed as a purchase. Send us that confirmation with the contract.

We need to learn your scenario further. We do not use a bank's serviceability formula. We assess the property, your equity and how the loan will be repaid. You will still need a realistic plan to repay us within the term, such as a refinance once your income documents are ready, or a sale.

This is not a problem for us. We can lend without your latest tax returns where the property and repayment plan are sound. Many self-employed investors use our loan to settle and then refinance to a bank once their returns are lodged.

We need to learn your scenario further. We can lend where there is a clear resale market for the unit. Some banks will not lend on units below a certain size. We value the unit itself, and the loan is based on that value.

We lend up to 70% on the property you are buying, based on the lower of its value and the price. Equity in another property you own can cover more of the purchase, as long as the total borrowing stays within 70% of the combined value.

No. We lend for business purposes only, and to companies, not to individuals. If you plan to live in the property, a bank or mortgage broker can help you with a home loan.

Days are usually enough, and we have funded on the same day where the scenario allowed it. We do not wait on a serviceability assessment, so the timing depends mainly on our valuer's inspection and your solicitor.

• →$3.5 million for an investor after a major bank missed the deadline
• →$271,000 approved within 4 hours for a next-day settlement
• →$1.88 million bridging loan settled in 48 hours

Yes. Many investors we lend to also own a business, and we fund cash flow and working capital for real estate, professional services, construction and other industries. It can be arranged at the same time as your investment purchase.

• →Real estate lending
• →Working capital loans

Yes, but it is not a pass or fail test. Defaults or past arrears are things we can work with where the property and repayment plan are sound. Tell us about any issues up front, as it speeds up the assessment.