How quickly can a private or caveat loan be funded?
We do not promise a number of days. Timing depends on title and priority checks, legal purpose, valuation where required, and the lender's own credit assessment, none of which has happened at the enquiry stage. What we can do is tell you, once the security and exit are known, what is realistic and what would slow it down.
Is a private loan or a caveat loan regulated?
Not automatically unregulated, no. A business or investment purpose does not by itself remove the National Credit Code. Where the Code applies, it applies, and we assess, disclose and document accordingly. Where it does not, we still assess the facility on purpose, security, capacity and exit.
What loan-to-cost or loan-to-GRV ratio can I expect?
There is no fixed number. Lenders size development facilities against both cost and completed value, and the lower of the two usually governs. Equity, presales, builder experience and the exit move the answer as much as the ratio does. The illustrative scenario on this page shows how the two measures sit together; it is not a quote.
Can a development be funded without presales?
Some lenders will consider it, at a different price and a different facility size, depending on the project, the location and the exit. Others will not. We will tell you which channels are realistic for your project rather than promising an outcome.
What does "exit" mean and why does it matter so much?
The exit is how the facility is repaid: sale of stock, refinance into a term facility, or sale of another asset. Every lender in this space funds against the exit, not just the security. If the exit is not evidenced, the facility either does not proceed or costs more. We work it out first.
Will you show me the total cost of a private facility?
Yes, in writing, before anything is signed: establishment and legal costs, the rate basis, the term, any extension terms, and what happens if the exit slips. A private facility that is right for the transaction is only right if you can see the whole cost of it.
Who will I deal with?
Enquiries above $10 million go to Ian Webbe, Mortgage Development Manager, from the first conversation through to settlement. Credit assistance on every file is provided by Dayan Kasturiratna, Founder and Director, Australian Credit Representative 394747.
