Summary: Can I Get Approved For A Commercial Loan Under Trust?
| Details | Description |
|---|---|
| Customer | Rameshwara Prabhu |
| Broker | Romy Dhungana |
| Purpose | Buying a commercial property (shop) under trust. |
| Loan Amount | $2,020,000 |
| Security | $2,525,000 |
| LVR (Term) | 80% (30 Years) |
| Interest Rate | 8.40% |
| Features | Interest only, Redraw |
| Income | $257,251 (primary + secondary income), $321,385 (rental income) |
The Starting Point
Rameshwara Prabhu is a dedicated and highly successful medical professional, admired for his commitment and expertise. Living in a beautiful home that he proudly owns outright, Rameshwara truly enjoys the rewards of his hard work. His income comes from his primary and secondary jobs, and he also benefits from a steady stream of rental income from his investment properties. Despite juggling several commercial and investment liabilities, Rameshwara steers clear of credit cards and unnecessary debt. Now, with a vision to grow his investment portfolio, he is focused on purchasing a commercial property under a family trust.
The Challenges Ahead
Rameshwara’s situation was unique for several reasons:
- Diverse Income Sources: As a registered nurse with multiple income streams, it was tricky to present a clear financial picture that lenders could easily understand.
- Multiple Liabilities: With existing commercial and investment debts, we had to carefully balance these to ensure they didn’t impact his ability to borrow more.
- Family Trust Purchase: Buying the commercial property through a family trust introduced additional legal and financial complexities, making the loan approval process more challenging.
- Interest-Only Loan Preference: Rameshwara preferred an interest-only loan, which lenders often consider riskier, so we needed a strategic plan to make it work.
- Limited Borrowing Power: As the sole applicant, his borrowing capacity was limited, so we had to build a strong case to highlight his financial stability.
Despite his solid financial background, Rameshwara hit a major roadblock. A specialist lender offered him a 75% Loan-to-Value Ratio (LVR), but he needed an 80% LVR to make his investment plan feasible. This shortfall threatened to throw his entire investment strategy off course.
The Path to Approval
Home Loan Experts Mortgage Broker Romy Dhungana takes on complex cases with a careful and precise approach. Romy realised this case needed more than routine actions—it required strategic thinking and a hands-on approach.
Here’s how he took it on:
- Getting To Know The Client: Romy took the time to fully understand Rameshwara’s financial situation, investigating every detail of his income, liabilities, and investment goals. This deep dive was essential in crafting a solution that perfectly fit Rameshwara’s needs.
- Thorough Market Research: Romy tapped into his network and industry expertise to find a lender willing to offer the 80% LVR needed for Rameshwara’s commercial property purchase under a family trust. His persistence paid off when he found the right match.
- Document Preparation: Romy carefully gathered and prepared all the necessary documents. This attention to detail helped present a strong application, minimising any potential hurdles.
- Strategic Presentation: Working closely with the commercial Business Development Manager (BDM), Romy showcased Rameshwara’s financial strengths, solid credit history, and the security of the commercial property. This thoughtful presentation was key to winning the lender’s approval.
- Clear Communication: Once approval was secured, Romy immediately shared the good news with Rameshwara, ensuring the terms were exactly what he wanted before moving forward. Romy’s transparent communication kept Rameshwara informed and satisfied every step of the way.
A Winning Outcome
Romy helped Rameshwara secure an 80% LVR loan of $2,020,000 for his $2,525,000 property, perfectly fitting his goals for growing his portfolio under a family trust. The loan featured an interest-only option and a redraw facility, all at an 8.40% interest rate over 30 years.
Rameshwara was delighted with the outcome, praising Romy for the smooth, transparent process and expert advice. His trust in Romy’s work led him to return for a refinance on his existing commercial property.
Let Us Guide You!
If you’re dreaming of expanding your investment portfolio like Rameshwara, we’re here to support you every step of the way. At Home Loan Experts, we understand that every financial situation is unique, and we take pride in offering expert personalised solutions that fit your needs.
Call us on 1300 889 743 or fill out our free online assessment form—let’s make your financial goals a reality together.