Three vs Four + townhouses -> commercial finance

Discussion in 'Loans & Mortgage Brokers' started by Hamish Blair, 31st Dec, 2020.

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  1. Hamish Blair

    Hamish Blair Well-Known Member

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    29th Sep, 2015
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    Melbourne
    It’s time to think about our next development; last time we obtained a construction loan from Bendigo Bank via a broker for a three pack. Learned the hard way about how “discounts in one line” work in determining borrowing capacity.

    I understand that four townhouses moves us into commercial territory.

    Appreciate any comments, observations and lessons learned you have.
     
    Hamish Blair, 31st Dec, 2020
    #1
  2. Lindsay_W

    Lindsay_W Well-Known Member

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    Commercial Finance not the only option here, still likely to have an in-one-line val even if commercial funding required also a higher deposit required for commercial.
     
    Lindsay_W, 1st Jan, 2021
    #2
  3. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    If it's possible to subdivide first then go for finance construction you might open up more options - you are then going for one construction loan per block/lot/title.
     
    Westminster, 1st Jan, 2021
    #3
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