In this article:
ANZ is removing barriers to commercial property lending
The commercial property industry is an important one for Brokers and their clients, which is why ANZ has simplified some of the complexities of commercial property lending to make it simpler for investors wanting to borrow $1M-$3M for commercial properties.
Their most recent update includes:
- Providing more favourable loan terms and interest-only lending terms:
The maximum loan term is five years, and an interest-only period of up to three years may be available (but Weighted Average Lease Term (WALT) criteria apply, where applicable).
- Reduced their remaining lease-term criteria:
The minimum remaining lease term requirement for the property is now only one year, which is a key update to their policy. The servicing test for lending includes an interest cover ratio.
- Increased their Loan to Value ratio for standard commercial property lending:
This simplified criteria is available where the loan-to-value ratio is 70% or less (as determined by ANZ), the security property type is standard commercial property (some exceptions apply, such as construction sites, medical centres and childcare centres) and the commercial property is for leasing to an unrelated third party.
Other terms, conditions, fees, charges and credit approval and eligibility criteria apply.
For more information, click here.
ANZ has also recently made changes to the way they assess applications for clients with business lending up to $3M for new and existing customers with an established repayment history.
All these changes have been made so that they can deliver a faster time to approval and a more consistent experience for Brokers and their clients.
For more information on any of their updates to commercial property lending or their simplified lending policies, click here.
For any questions please reach out to your BDM.