Target Market

  • Commercial Mortgages from $250k to approximately $2m (i.e. maximum property value normally up to $4m). The dollar limit is applied to individual loan size, therefore the group exposure may be larger
  • We define the market by security (i.e. commercial property) not purpose
  • Property investors and experienced owner operators (with proven business track record)
  • Non specialised commercial security (traditional industrial, office with alternative use and prime retail properties)
  • Major metro (regional on a case by case basis and/or reduced LVR)
  • No property development

Product Features

  • Maximum term is 15 years P&I or 5 years IO
  • 0.25% commitment fee (refundable until issuance of formal Letter of Offer)
  • Carded Indicative Variable Rate (ING DIRECTCommercial Cash Rate + a margin)
  • Carded Indicative Fixed Rate (up to 5 years) = (Relevant swap rate + a margin). Rates are determined at settlement
  • Rates are flexible for quality business
  • Full additional repayment flexibility on variable rate loans and up to $20k pa on fixed rate loans
  • Redraw ability of variable rate loans (minimum redraw $10k at a cost of $150)
  • Early repayment fee = 1 month's additional interest on the original loan amount if discharged within the first 5yrs
  • Legal costs for loans under $600k is approx. $800. Legal costs for loans above $600k is approx. 0.1% of commercial loan amount plus disbursements. We use Hicksons in NSW and Gadens interstate
  • Valuation cost

EMV or Purchase Price

/ Estimated Valuation Fee
(subject to confirmation)
$ 0 - $ 500,000 / $600.00
$ 501,000 - $ 750,000 / $800.00
$ 751,000 - $ 1,000,000 / $950.00
$ 1,010,000 - $ 1,500,000 / $1,250.00
$ 1,510,000 - $ 2,000,000 / $1,750.00
$ 2,100,000 - $ 2,500,000 / $2,000.00
$ 2,510,000 - $ 3,000,000 / $2,500.00
$ 3,100,000 - $ 4,000,000 / $3,000.00

Benefits

Generally a set and forget type facility (ING DIRECT reserves the right to review loans at its discretion)

No ongoing fees or charges

Low commitment fee (0.25%)

Repayment flexibility

Competitive and flexible pricing

Service Standard

  • Indicative decision within 2 - 3 working days
  • Valuation 5 working days (from inspection)
  • Formal Approval approximately 8 working days

Benefits

Accessibility to Credit Assessors to discuss applications

Same Credit Assessor for related residential and commercial applications

Preferred valuation turn around times and cost structure

Remuneration

  • Upfront commission on commercial loans now equivalent to that paid on residential loans introduced to ING DIRECT. The exception being upfront on commercial loans is capped at a loan size of $2.5m, as apposed to $2.0m on residential loans
  • 0.25% trail commission

Risk Profile

  • Maximum LVR 75% (70% Interest Only Loans)
  • Interest coverage of 1.40 times (Higher of the actual rate plus 2.0% assessment margin or floor assessment rate of 8%)
  • Average of last 2 years tax returns
  • Lease-Doc Facility: Interest coverage of 1.3 times (higher of the actual rate plus 2.0% assessment margin or floor assessment rate of 8%) from net rental

PCM Primary Contacts

Commercial Relationship Manager – Clem Marcocci 0401 145 180 or 02 9028 4112

Peter Webster: Credit Assessor - (02) 9028 4326

Denis Starr: Credit Assessor, Existing Business

Mats Lindfors: PCM Team Administrator - (02) 9028 4523 (for general loan status enquiries)

Application, PCM Checklist and other information visit the ING DIRECT Introducer Site at

PCM Application Fax Number: 1800 352 922


ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292