How does it work?
Once we establish your borrowing needs, we match your requirements to the lending appetite of our panel of over 200 lenders. You will then receive a detailed proposal outlining the terms of loan options we believe are best matched to your requirements. We then work with you through to settlement of your preferred loan option.
Is ACF a lender?
ACF is a finance broking firm which specialises in commercial, development, business and vehicle and equipment finance.
What size loans do you consider?
We can help you with anything from a $10K Business Loan through to a $500M property development facility.
What is an LVR?
The LVR is the amount you are borrowing, represented as a percentage of the value of the asset being used as security for the loan. The lower the LVR, the lower the risk is to the lender and generally the interest rate.
What is Gross Realisation Value?
When you develop property, the Gross Realisation Value is the value of the property(s) on completion of construction. Generally, valuers record a GRV Value both inclusive and exclusive of GST.
What is the Margin scheme?
The margin scheme is an alternative method of calculating the GST payable on sales of real property. It allows sellers of real property to pay GST equal to one-eleventh of the ‘margin’ rather than one-eleventh of the total sale price. Depending on when, and from whom, the property was purchased, the margin is generally the difference between the sale price and the amount the seller paid for the property. In some instances, a valuation figure may be used in place of the original purchase price.
What is an Establishment fee?
Most lenders charge an Establishment Fee (Application Fee) to cover their costs in establishing your loan.
What lenders does ACF work with?
We work with over 200 lenders including banks, credit unions, building societies, second tier lenders, mortgage trusts, debenture funds, overseas funds, private lenders as well as various family offices and individuals.
How much do you charge?
This largely depends on the loan size, the loan type, and complexity of the transaction. It is also dependent on the lender chosen.
Some lenders pay us a set “Upfront Commission” and may also pay an ongoing Trail Commission for as long as you have the loan with them. Others require us to charge a Brokerage/Service Fee and do not pay any Trail Commission.
We shall confirm our fee structure in each loan proposal which we will tailor specifically to your transaction.
Does submitting an enquiry affect my credit score?
Submitting an enquiry to ACF does not affect your credit file as we do not conduct credit searches.
However, when you have identified the right loan solution and apply to a lender via our office, they will require you to sign a Privacy Consent to enable them to conduct credit searches. This will leave a footprint on your file.
What property types do you consider?
Our lenders will consider funding most types of residential and commercial property within Australia. From houses to vacant industrial blocks, service stations to pubs and office towers.
What is a coded loan?
A loan subject to the National Consumer Credit Protection Act. The NCCP regulates all consumer credit including housing loans where the borrowers borrow in their individual names. The NCCP Act suggests that it does not apply to company borrowers or commercial property transactions.
What is a debt cover ratio (DCR)?
When developing property, DCR is calculated as the Net Value of any Pre-Sales (Gross Sales less GST and Selling Costs) divided by the Facility Limit.
What is a discharge fee?
A fee charged by lenders to cover their administration and legal costs related to the discharge of a mortgage when a loan is repaid in full.
What is a brokerage/service fee?
Some lenders pay Brokers commission and build such into their Loan Agreements. Others require that a referring Broker provide a Mandate/Service Agreement between themselves and their client, outlining the terms of their relationship with particular emphasis on remuneration.
What is an interest cover ratio (ICR)?
A ratio used by lenders to determine a Borrower’s ability to service any proposed debt. Such is generally calculated on either a standalone (Rental Income/Interest) or all sources basis (All Income/All Commitments).
In each instance the lender uses a benchmark rate (commonly 2% over the proposed rate) to calculate interest payable and seeks a positive result, such that income is greater than interest payable.
What is a default rate?
A penalty rate charged by a lender in the event of a Borrower either defaults on their loan repayments or violates the loans terms and conditions.
What are your interest rates?
As we are not a lender, we do not have our own products and interest rates. We have however spent our working lives immersed in the Australian lending landscape and are very well placed to find you the right loan from one of our lenders.
How long does it take?
This will all depend on where you are in the loan cycle and what type of loan you require. For instance, you may or may not have a valuation already completed. From our experience, mainstream lenders tend to take longer than second tier/private lenders. Please communicate your expectations clearly when considering loan options.
Who sees my information?
What locations do you consider?
Our lenders base offers solutions Australia wide.
What are PRE-SALES?
A term used in relation to development loans, which refers to the sale of a property/s prior to commencement of construction or civil works. In this way, Contracts of Sale are entered into to purchase the property/s once complete for an agreed price and within a pre-described time frame known as a sunset date.
What are PRE-LEASES?
A term used in relation to development loans, which refers to the lease of a property(s) prior to commencement of construction or civil works. In this way, Lease Agreements are entered into to rent the property/s once complete for an agreed price and within a pre-described time frame known as a sunset date.
What is a commitment fee?
Often a Lender and/or a Broker will charge a Commitment Fee to cover their costs and expenditures outlaid in in assessing and/or reviewing your loan. Payment of such generally gives them additional comfort that you are genuinely interested in their product or service.
Please note that some Commitment Fees are non-refundable whilst others a refundable subject to certain events occurring. For instance, some Commitment Fees are deducted from the Lenders Establishment Fee at settlement.
What is capitalised/retained interest?
Some commercial facilities incorporate loan interest for the prescribed loan term within the Facility Limit offered. In this way, the Borrower does not make repayments, rather utilises equity to cover the lenders interest costs.