The Advantages of Institutional Commercial Mortgage Finance

LINK Commercial Mortgages (“LINK”) was established in 1999 to serve and cater to the requirements of commercial and industrial property investors who were seeking viable alternatives to oppressive bank lending practices.

Our reputation for integrity and professionalism in the Australian credit sector has been painstakingly earned over the past almost three decades.

LINK providing funds from a smaller number of select Tier-1 Non Bank Financial Institutions (NBFIs).

While brokers use a scatter-gun approach to the wider multi-tiered market, LINK is a specialist Originator.

As a retained Mortgage Manager, LINK has a significant involvement in the entire credit process from initial application and credit assessment, to documentation and settlement, as well as post-settlement relationship and mortgage management – we support you all the way through and over many years.

For investors in commercial and industrial property, seeking commercial property investment finance beyond the realm of the major banks can have some key advantages:

▪ Timely Service - NBFIs have flat business structures; banks have more rigid and multi-tiered processes. A flat business structure allows NBFIs to process applications, provide approvals, then proceed to settlement in a relatively short time and without complications.

▪ LINK appointed as Mortgage Manager - we deal directly with the decision makers and our commercial credit memorandum is usually rubber-stamped with minimal delay.

▪ Flexibility – finance terms can be moulded to fit your specific needs. Unlike one-size-fits-all rigid bank ‘products’, we structure customized solutions.

▪ Why pay the bank for an interest rate hedging product ?!! Structure a natural interest rate hedge to suit your investment outlook at no cost, consider:

- Half fixed interest, half variable interest; this is a Natural Interest Rate Hedge and it’s free !

If interest rates go up, you’re protected on half of the loan; if interest rates go down, your benefit on the other half of the loan. It’s a neutral interest rate risk exposure.

- A mix of maturities, for example; part 7 year fixed, part 3 year fixed, part variable interest rate.

Enjoy the security of a fixed rate of interest while creating windows for principal reduction without incurring break-costs.

- Interest Only or Principal & Interest, or a combination in any proportion that suits your cash flow management needs.

Manage your debt and repayment obligations to suite your financial comfort.

All of the above are available in any combination: part fixed (and with staggered maturities), part variable, part P&I, part interest only - don’t get stuck with a rigid bank product!

No cross-collateralisation – while banks are notorious for taking mortgage and other security over all your properties, we advocate against putting all your eggs in one basket

▪ No annual reviews with Institutional set-and-forget loan structures

▪ Specialized Expertise - commercial real estate finance is our business, not an add-on service. Our 25 years’ experience means we understand borrowers’ needs and creative deal structuring.

▪ Higher lender exposures (LVRs) - for eligible borrowers and security properties, LINK may accommodate requirements of up to 70%-75% of valuation.

Higher leverage means less equity required so you can direct it to other projects or needs.

▪ No Penalties – Banks will charge Break-Cost on any early repayment of fixed interest loans.

These penalties can be substantial as they are calculated to cover the bank’s loss of income over the loan term on the principal repaid.

LINK’s NBFI commercial loans can be structured to allow you to repay part or all of your principal with a reduced early repayment fee or without penalty.

▪ Personalized Service – LINK is a boutique advisory firm and provides individualised service.

Each client receives hands-on senior management attention with long-term relationship building in mind; we do not treat our clients as just a number.

By choosing NBFI commercial financing with LINK, borrowers can gain faster timelines, more flexibility to suit specific needs, cost savings, and a more customized experience overall.

Contact our LINK today to discuss how we can help fund your next commercial-industrial property purchase or development project.