Commercial Mortgages, Getting The Best Possible Interest Rate

Wtih any large borrowing, a small change in the interest rate can make a big difference with regards to the repayment amounts, oth in the monthly service costs and the overall total interest paid. So it is important for the borrower to get the best interest rate possible on a commercial mortgage. In order for this to happen, the lender or mortgage broker is going to ask a lot of questions to arrive at a competitive rate of interest for your commercial mortgage.

Just imagine the scenario, that you are given two pieces of a big jigsaw puzzle and asked to describe the entire picture that the puzzle makes up. Chances are that would would say something like it is a slice of toast and maybe a part of a teacup. You cannot say much more than this if you cannot see the big picture.

The situation with commercial mortgage finance is much the same. If a prospective borrower simply asks the question, “What is the best rate available on a commercial mortgage? “, this will bring out an equally exasperating answer from the lenders. This is for numerous reasons not least of which is that not everyone agrees on the factors that go to make the headline interest rate for a commercial mortgage. This link gives an idea of the lending criteria and interest rates offered by some commercial lenders in New Zealand.



You will also come across some bankers who quote a rate off the top of their head. In reality will never be charged this rate. Mostly this is just a figure to impress you and get your attention so that you will return to him first when actually need a mortgage.

As a rule of thumb, the main banks will offer the best interest rates on a commercial mortgage. However, the downside is that they are generally less flexible than second or third tier lenders. There are some projects which they do not want to be involved with or they place highly restrictive conditions on a loan.

Like with the jigsaw analogy, a lender also wants to know the bigger picture in realtion to your project, you and your team of people.

Keep in mind that before a lender agrees to lend money to your project, you will have to convince them of many things. Like who the board of directors are, the area of business that you operate in, who has effective control of the company and this is before yo even begin to talk about the project itself. At this early stage the lending institution is asking a lot of questions that would leave them in no doubt as to the capacity of the borrower to repay the loan.



Another general rule of thumb is that mostly, the best interest rate rates are given to the most credit worthy borrowers. This person or company would have a verifiable source of income to meet the mortgage payment, low debt in their accounting books, plenty of relaible creditors and the likes.

If you are looking to use the rental income as the cash-flowsource, then for people who make their income from rentals can qualify for commercial mortgages, provided that the total rental income can pay for the mortgage payments. Listed below are some of the points that a typical lender looks for in giving out a mortgage:

  1. Established business: A business that has been in existence for a period of three years or more.
  2. Verifiable and well maintained books of accounts: Companies that keep well documented accounts and who file their returns regularly are given preference.
  3. Clean credit: This would mean all borrowing are serviced on time and that there are no pending payments on any accounts.
  4. Good leases: Investment properties are covered by proper lease agreements and that rental income flows in regularly without any late payments.

The above points are some of the factors that are considered in giving out the prime commercial lending rates. There are a lot of borrowers who do not qualify under such stringent conditions of lending. Therefore lending to these people will be at a higher than the prime lending rate. The bank loks at interest as the cost of the risk.

When approaching a commercial mortgage lender, it is prudent to have the above details in hand to answer all the broker’s or lender’s concerns. This would include the past three years’ tax returns, the CVs of the board of directors and generally any other document that would streghten your application with the lender.

You will also need a business plan whether this is for your entire business or for that particular project. And always remember to have a clear exit strategy. This is perhaps the most important issue for thelender beuase it tells them how they wil get their money back.

Without any doubt, there are available very competitive rates of interest available in the market. It is for the borrower to impress on the lender why they can offer that borrower an attractive interest rate. Having a complete and verifiable set of documents, accounts and robust plans will go towards convinving them to grant you a commercial mortgage for your project.

For investors who want a commercial mortgage in Auckland, Global Pacific is one of New Zealand’s top brokers for commercial finance. You can get mre details at their website.

Finance For Construction Loans in NZ

Finance For Construction Loans in NZ

Auckland construction loan finance

Auckland construction loan finance – image khunaspix

Would you like to start a construction project, but you do not currently have the financing necessary in order to get this done? Even if you have been in the construction business for quite some time, if you have too many outstanding projects, it can be difficult to find people that are willing to work with you to provide you with the capital that you need. As with any business, it takes money to make money, and without the funding necessary to obtain supplies that you need to start and complete each project, it is not possible to operate a construction business of any sort. It’s even worse when the interest rates are extremely high, making it very difficult for people to obtain loans and make the payments. This article will address a couple different tips on how to find financing for construction projects that will allow you to create a larger business portfolio that can help you generate more money this year.

Reasons For Obtaining Construction Loans

If you are a larger business that has millions of dollars in capital to work with, obtaining loans is probably not something you deal with on a regular basis. Unless the project is extremely large, priced at tens of millions, or even hundreds of millions of dollars, you can typically handle most of the projects that come your way. Unfortunately, for the smaller contractor, getting financing is an absolute necessity. Although you will be able to pay off the loan upon receiving payment from the client, it is possible that your client may not be able to pay you in full right away, which means you will need to have a lower interest rate in order to stay afloat.

Obtaining Low Rates For Construction Loans

Some people are fortunate in that they have a relationship with a local bank, or multiple banks, in which their track record will allow them to obtain financing even if they already have several loans outstanding. It is sometimes best to work with multiple banks as each one will have different interest rates. You can also go beyond what is available in your city or town, looking on the Internet for construction loans that are much more affordable. Depending upon the size of your company, the size of the loan, and how long the loan will be for, you will be able to get the financing through these other companies for a much lower monthly payment.

Keys To Finding Financing For Construction Projects Online

The very first thing you will want to do a search for construction loan brokers on the web. In most cases, the ones that you find in the local listings will be helpful, but the organic listings tend to be the best. These will be from national NZ companies that have the funding necessary to hire search engine optimisation experts to place their companies on the top of the search results for multiple search terms. These companies may also have low rates which will allow you to obtain financing, and not have to worry about making the monthly payment if the client pays beyond a certain period of time.

It is a good idea to approach an independent broker rather than a single bank as brokers have access to many different funding sources. They can negotiate on your behalf for better rates since they provide a much greater amount of business to the lenders than any single borrower.

They will also have contacts with less well-known finance sources which may be another option for your project. Some lenders do not like particular types of construction projects and so you may find that the regular lenders such as banks will not be amenable to your plan. Alternatively, if they do accede to it they will hike the interest rate to protect themselves.

Construction loan finance

Construction loan finance

The construction industry is starting to come back as a result of the economy bouncing and moving forward. Although it’s good to have extra jobs, and to expand your business, getting low interest rates is absolutely imperative. Using these simple suggestions for searching on the web, and comparing the different rates that are available, you should be able to locate a lender that will be willing to work with you, and provide you with low interest rates that can help your business generate more revenue with each job that you take on.

A leader in the New Zealand construction loan financing industry is Global Pacific Finance. You can find more information on their website.

Property Development Finance Needs Proper Documentation

A Proposal for Property Development Finance Needs Proper Documentation

Developing property is just one more way of finding an outlet for your talents and any money that you have for investment. However, it is very important to understand that real estate will gain value only after it has been properly designed and constructed. But for this you need money and that can be hard to come by unless you know the places and how to secure property development finance.


Obviously all land has some value but if it is undeveloped, then the value does not increase significantly. Further, there is no guarantee that a property development scheme will be profitable. In fact, many are not and this makes property development finance a greater risk than most other investments. This is the reason that lenders approach the field of development finance with great caution and need to be very well convinced about the feasibility of the project and just as importantly, the capabilities of the developer.


Finance for property development

Finance for property development – image Supertrooper

So any prospective developer must be fully prepared before any approach is made to lenders for the required finance for any development project. These preparations have to include all the necessary documentation relating to the property that is to be developed, a complete business plan, which can demonstrate the ability of the developer to carry out the project and to be able to manage the debt that is being undertaken. If the developer is an existing company properly audited accounts of previous years can help to convince lenders of the credentials of the developer. In such cases, details of shareholders, company officials and other stake holders also need to be divulged. The developer must ensure that these documents are prepared well in advance, properly reviewed and deal with any possible objections. Getting help from commercial finance brokers can help to create the necessary documentation, as they are people who will be well versed with what financiers and lenders ask for.


Property development finance can also be obtained from lenders and investors with elements of debt and equity. In such cases, the investors are given a share in the ownership and will be partners for any profits that are made after the property is developed. Mezzanine finance may also be resorted to which combines both equity and debt and has to be paid back after a period of seven to ten years at interest rates that can be quite high. When preparing any proposal for development finance, it is best to do this in an acceptable format and agree to any terms that any lender has. This greatly increases the chances of acceptance of the project and getting the required finance.


Figures presented in any proposal for finance need to be realistic and must allow for downward trends in property markets. Contingencies must be catered for while escalation of costs, need to be adequately factored in. Any valuation for the proposals becomes more credible if independent surveyors are appointed.


It can always help if the project is properly detailed and even permissions obtained before any lender is approached. This will mean that the developer will need to use their own finances for this, but lenders are always more comfortable with lending to people who show initiative and eagerness in using their own funds. In fact, any proposal that shows that the developer will put up a fair percentage of the required finance for the project has better chances of being accepted. Proposals that show that the amount of the debt as not exceeding 75 to 80 percent of the value of the project after development have the best chances of attracting finance at fairly decent terms.


Financing property development

Financing property development

Property development finance is seen as an area of finance that involves a lot of risk, as profits are very much in the future and dependent on completion of the project in time and under cost. During the period of the construction, market conditions can change and this can affect the final profitability.


For help with property development finance in NZ, Global Pacific is one of the leading brokers. This is their website

Benefits Of Hiring A Business Finance Broker

A commercial finance broker is a consultant who serves as a mediator between a borrower and a lender. They act on the behalf of borrower to arrange the best financing solutions. They not only assist the clients in evaluating their current financing requirements but also offer access to a wide range of several other business finance options. You can save you time as well as energy plus gain a great deal of knowledge and guidance about the finance industry. There is no doubt that these brokers charge a referral fee for their services, but you can get benefits of managing your business and raising the funds to harmonize your growth.

3d $ signsA commercial financial broker deals with various financial products such as factoring, corporate finance, property or asset finance, refinancing, funding a business purchase, management buy-outs and many others. These brokers provide services to all whether a young budding industrialist, multinational companies, giant corporations or a small family run businesses. The approach, knowledge and network of a good finance broker can also help those companies who are declined by the major financial establishments. There are several other benefits of working with a commercial finance broker. These are as follows:

  1. With the services of a brokerages, you can save your time as he handles all the tasks of preparations, multiple presentations and systematic discussions on your behalf. A good broker not only makes presentations to represent to the lenders, but also negotiates with them and does the essential follow-ups. Often the borrower does not even need to meet lenders as the brokerage handles all of the communications and discussions.
  2. Brokers also recommend different contingency plans as an alternative funding option in case there are problems with the main application. In fact, a good broker will have access to many different sources of funding for just this type of situation.
  3. Almost all experienced business finance brokers have strong connections with many types of moneylenders as well as other brokers within the finance industry. Therefore, if you have an unforeseen or difficult relationship with a particular lender such as your bank, the chance of raising the required fund is much lower. However, if you work with a finance brokering firm, they can introduce you or present your case to many other sources that may look at the situation differently.
  4. A finance broker knows how to structure and present different applications for financing. They know what a particular lender is looking for and so can make the application to suit that lender’s criteria. This inside knowledge is something very few companies or borrowers would have and it can make or break the borrowing application.
  5. All businesses depend upon capital, equipment and premises in one form or another. It is very difficult to expand a business without additional finance to fund one or more of these key components of a company. With the help of a commercial finance broker, you get access to wide-ranging financing options that can enable business owners and managers to invest in plant, stock or new premises. With their specialized knowledge finance brokers assist businesses to arrange financing whether as a lease, purchase, loans, commercial mortgages or different lines of credit.

Commercial loan broker NZBy keeping in mind these benefits of working with a broker, it will be easier to get your funding needs in a cost-effective and timely fashion. They can often negotiate better interest rates than a company can because they put more funding to a particular lender and can sometimes get the scale advantages to pass onto their clients.

So if your company is looking for commercial finance, brokers can often help. For Auckland based companies, Global Pacific Ltd is one of the best finance broking companies in NZ. You can get more details here.

NZ Commercial Mortgage Broker

What Does a Commercial Mortgage Broker’s Job Entail?

Commercial mortgage brokers are trained experts who work in the field of commercial, industrial and retail real estate. They help their customers buy and sell commercial properties by obtaining mortgages. Their customers can include banks, businesses, organisations, governments or just individual citizens who wish to own a commercial property for whatever reason. Here is some more background on commercial mortgages.

Commercial mortgage broker

Commercial mortgage broker for investment funding

Mortgage brokers usually have relationships with various banks and mortgage providers, so they can get their customers a much better deal than what the average person would be able to find on their own. Commercial mortgage brokers know the inner workings of the commercial real estate market in their area very well. This allows them to provide many exclusive services to their clientele.

In most cases, commercial mortgage brokers get paid on commission. Because of this, brokers must also be excellent salespeople in addition to being experts on mortgages and commercial real estate. They must also be tech-savvy and possess good computer skills because this line of work requires the use of online databases, spreadsheets, digital data records and electronic correspondence on a daily basis.

To start working as a commercial mortgage broker, it is usually necessary to obtain some sort of formal education. Many colleges, universities and trade schools offer degree or certificate programs for commercial real estate. However, there is nothing like learning on the job. So while some formal training is important, the best commercial mortgage brokers have the right attitude rather than simply having the right qualifications. Therefore, many commercial brokers in cities like Auckland look to work for companies like Global Pacific where they can learn and earn.

A commercial mortgage broker will need to be familiar with dozens or sometimes hundreds of different financial products provided by a broad range of lenders. In the commercial mortgage market, it is not just the big banks that provide finance. There are second tier banks, finance companies and wealthy individuals who like to lend on various investment projects. Depending on the types of services they offer, a commercial broker can choose to specialise in one area of commercial real estate. It is the broker’s job to effectively market these financial products to potential customers and find the best solution for their client’s needs and goals.

A commercial mortgage broker also needs to be an effective communicator. There are many technical and legal terms that are frequently used during real estate transaction. Because of this, many clients who are new to the world of commercial real estate or mortgages may feel overwhelmed, confused or stressed out. The broker must be able to explain things in terms that their clients can easily understand. Commercial mortgage brokers must be able to provide clients with information on all of the current real estate and finance laws, regulations, loan terms and other important details in a clear, concise way.

In order to help clients find the right commercial mortgage lending, brokers must assess each client’s credit history. They must also compile various documents that will help them to determine whether or not the client is a good fit for a particular loan. Once the client’s eligibility has been determined, the commercial mortgage broker creates an application file and submits it to the lender.

Commercial mortgage lender NZ

Commercial mortgage lender NZ

After the lender makes a decision, the broker must notify the client about whether or not they were approved. If their application was approved, the broker proceeds to help the client purchase the property, which includes getting an inspection, attending the final closing and paying all required fees.

Commercial mortgage brokers are important liaisons who help to bridge the gap between real estate clients and financial institutions that provide commercial mortgage loans. The job is rewarding and challenging due to the large amount of information each broker must possess.

This website has details of a commercial mortgage broker based in Auckland however they do operate and provide funding all around NZ.

Commercial Finance for Your Business in NZ

Finding Commercial Finance for Your Business in NZ

When a business or entrepreneur wants to make a significant investment they rarely use their own cash. In fact few have sufficient cash available. So to fund their investment or development, they look to financiers or lending institutions to arrange some form of commercial finance. There are many lenders who are willing to grant commercial financing but they each have their own lending criteria and of course different terms associated with that funding. Before you begin a search for commercial finance it will pay you to carry out some basic homework and research beforehand.

What finance you need and why?

Commercial finance broker NZ

Refinance your commercial debt

You should have a clear idea about your financial requirements and repayment abilities before requesting a commercial loan from a lender. A clear idea about these parameters will definitely help you to find the most suitable financial deal in the market. The terms and condition of the commercial loan should always benefit you as a customer than the lending agency. There is no doubt that any commercial lender will try to gear the loan towards their benefit by extending the repayment period etc. But, you as the customer should be wise enough to see the pitfalls in such actions, and choose the best terms that would suit you. This is why you should do a thorough research before applying for a commercial loan from any lending agency.

Who should you approach for commercial finance in New Zealand?

Your research should be started by going online. When you search for commercial finance in your town, there would be several lending institutions that would rank on the first page of the search results. Visiting these websites will give you a good idea about the type of finance and the sort of projects they provide financing for.

You can narrow your search to 3-4 commercial financiers that have the types of finance which you are interested in. It is also useful if they have worked in an industry similar to you or provided finance for a project like yours. You can find examples of their commercial lending activity on a case study page or similar on their website.

Choosing the most suitable commercial finance lender will help to obtain your cash under the best terms and conditions to meet your needs. Once you have found the best lender, you can check their website for more details about the product. There may be past customer reviews for the financial services that the company offers. If possible, try calling some of these customers will help to get a better idea about the service provided by the lending agency. This would definitely facilitate your efforts of obtaining commercial financing to suit your particular project or investment.

Documents you need for commercial finance applications

Once you have chosen potential lenders, the next part is to prepare the documents needed for the finance application. Balance sheets, profit & loss statements and tax returns are some of the main documents needed for obtaining a commercial loan whatever type of lender you go to. Apart from these documents, you should have a well-prepared project plan for your loan requirement. Most of the financial lending agencies will request for such a plan when you go to them. It will look better if you have a plan already.

Commercial finance companies in New Zealand

The choices for businesses in New Zealand have expanded in recent times. Even so, the business arm of the main commercial banks is still the first option for many business owners.  However, they can be quite restricting in the lending criteria. As a result, more people are turning to specialist commercial lenders for financing options.

Commercial finance broker NZ

Commercial finance broker NZ

There are plenty of potential commercial finance companies in New Zealand to talk to.  They will each have their own areas of preference (such as business finance rather than property development) and some will have areas of expertise too (such as asset finance compared to mortgages). One commercial financier in Auckland is Global Pacific Ltd. They operate all around the country and also have a wide ranging portfolio of projects they have arranged finance for.  IN the business finance arena they have funded franchises, leases, refinancing of existing loans, business expansions and many others. In short, if you have a project or investment your company wants to have funded, talk to Global Pacific. You can find more details about them on their website.


Commercial finance is an important requirement for most businesses whether in manufacturing or services. They will need to finance most of their business projects with commercial loans of one type or another especially as they may already have invested all their spare cash in the business. Selecting the best commercial lender is vital to get the best deal for your project and to help your business grow.